The so -called original “Robo Advisor” Betterment, the first digital and investment tips platform, has gained the automated Ellevest investment business, a similar technological platform founded by the leader of the wealth administration industry for a long time, Sallie Krawcheck in 2014 with a declared focus on female investors.
The agreement does not include Ellevest property management businesses and financial planning. Company, employees and operations remain intact.
It is often referred to as a Robo Advisor, Ellevest, as many automatic investment platforms, has struggled to grow; From the beginning over a decade ago, the general firm manages $ 2.4 billion in assets; The firm will not explode the part of those assets that sit only on the digital platform.
Doug Fritz, co -founder and executive chairman at the F2 Strategy, said Ellevest has a well -known brand, but also with the high consumer consciousness, most of the robos fought to find the base. “Ellevest – with their unique approach – are likely to be subjected to wars to really raise that business and make money for it,” he said. “Maybe it's another example of the Robo phase that is running out. Compositions and those that can make it on scale will be what will continue to win.”
This follows the news in December that Krawcheck would withdraw from her post as CEO due to an undiscovered medical diagnosis. Sylvia S. Kwan, her tall colleague in Ellevest and the firm's cio, would go through a co-core role with Connie Hsiung, Coo and her CFO.
“While focusing on our growing wealth management and financial planning business, Betterment was the natural home for our first digital customers. At the top of the automated investment, Betterment offers features for which many of our digital customers have expressed interest, including joint accounts and other money account options,” Kwan said in a statement. “We built a platform that makes it easy to invest in a way that works for the needs, goals and values of our clients – and the same is true for improving under their CEO leadership, Sarah Levy.”
For customers who do not give up, their accounts will be transferred to Betterment on or about 17 April, companies said.
Ellevest will continue to serve customers through its private wealth RIA, which provides financial planning and wealth management for high -value and ultra -high customers with $ 500,000 or more in investable assets.
Ellevest was one by one a series of similar digital online investment platforms that fed for women clients who started about a decade ago. Each tried to unite a dose of high shiny brand, focusing on empowering female investors, to create a different and more filled field service with Robo people. This included Shecapital, a Robo adviser launched by Tina Powell's adviser in 2015, and Worthfm, a female -centered robo created by Amanda Steinberg, the well -known founder of the Dailyworth People's Bulletin in personal finances, also in 2015.
Shecapital closed in 2016, with Powell, citing a severe timely commitment and the lack of withdrawal he had hoped for. That was followed by Worthfm, which was Close in 2018.
“As with robos across the platform, these are difficult things to grow, and Ellevest was no exception,” Fritz said.
Alois Pirker, founder and CEO of Pirker Partners, said that Ellevest had built a unique community of female investors, something that others would find it difficult to repeat. However, due to the nature of the Robo business, with their low tariffs, it is difficult to be profitable in space without a significant scale.
“Next to an uphill war,” he said. “The firms that seem to do better were either the first movers or those who were attached to some other distribution platforms.”
Betterment has won several Robo-Advice platforms over the past two years. Last April, Betterment reached a deal with Goldman Sachs To transfer customers and their assets from its platform Marcus Invest. In 2021, The company bought the Canada -based WEALTHIMPle business bookwhich included at least $ 142 million in US assets under management and over 14,000 customers.
Betterment now has more than 900,000 US clients in more than $ 55 billion in wealth.