A Chicago-area company that develops software for institutional investors announced Thursday it will open an office in Colorado Springs that will employ up to 45 people within five years to accommodate its expansion in the fixed-income investment industry, which includes bonds and dividend-paying stocks.
Investortools Inc. said it has leased office space at 5555 Tech Center Drive, near Rockrimmon Boulevard and Interstate 25, that also will include space for its contractor, Software Builders Inc., during a news conference hosted by the Colorado Springs Chamber & EDC. The company specializes in fixed-income portfolio management, trading, compliance, credit and risk analysis for about 250 large mutual funds, banks, insurance companies, securities dealers, advisers, rating agencies and similar financial services firms.
While company officials announced plans for up to 45 jobs during the next five years, the Colorado Economic Development Commission in December approved state income tax credits for the two companies totaling $1.43 million for up to 89 jobs during the next eight years. Investortools said its 55 jobs would have an average salary of $91,458, while Software Builders said its 34 jobs would have an average salary of $75,971.
"By opening an office in Colorado Springs, we are making an investment in the future of the company," Mike Green, Investortools vice president, said in a news release. "We are bringing together several different development and client service teams currently spread across the country to better serve our existing client base as well as help foster and take new products to market."
The two companies have already moved three employees, including Investortools co-founder Dan Daniels, to Colorado Springs and seven others are expected to join them by summer from Chicago and eastern Texas when their offices open in May, Green said. Investortools hasn't yet decided but is learning toward moving its headquarters to Colorado Springs from Yorkville, Ill., during the next two years, he said. The company will both move employees to the Springs and recruit locally for positions with starting salaries "in the high $50,000" range, he said.
"We are building a company that will be a front-runner," Green said during the news conference. "We see this office as a big area of growth. We will relocate from other areas and recruit new graduates. I'm not sure how fast that growth will happen, but we have to build a product for the future and this office represents that for us."
Investortools officials began researching locations for a new office about two years ago and included Colorado Springs in the search because many of its executives had vacationed in Colorado, Green said. The company avoided technology hot spots like Silicon Valley, Denver, Dallas and Austin, Texas, over fears of high turnover and included the Springs along with locations on the East Coast, Chicago, Arizona and Texas due to the state incentives and high rankings the Springs areas has received in several recent national surveys, he said.
Chamber CEO Dirk Draper said Investortools adds to the city's "strong network" of financial services firms including mutual fund giant T. Rowe Price, insurers Progressive and USAA and others.
Paul Daniels started Investortools in 1983 to meet the portfolio management needs of an institutional investment management organization where he was a bond portfolio manager, supervising those who bought and sold securities for the organization's mutual funds and was joined by Dan Daniels, his son, who developed the software. The company has grown in recent years from selling its software to investment managers for wealthy clients and expanded beyond municipal bonds into taxable bonds and other fixed-income investments.
Investortools is owned by more than 70 employees and their families. The company employs 115 people in Yorkville, as well as offices in Texas, Scotland and Bangladesh.
Contact Wayne Heilman: 636-0234