With the acquisition, UBS will be able to support its growth plans in the US. Here are the top-line bullets you need to know.
WHO ARE THE PARTIES TO THE DEAL?
- Wealthfront: California-based Wealthfront offers automated financial planning, investment management, and banking-related services to millennial and Gen Z investors. Founded in 2011, the startup has over 470K US customers and over $27B in assets under management (AUM). The company maintains operations in the US.
- UBS: Switzerland-based UBS provides wealth management, investment banking, asset management, and business banking services to customers worldwide. In Q3’21, the company reported an operating income of $26.8B, up 10.5% year-over-year. As of December 2020, the company’s total headcount sat around 73,000.
WHY DOES THE MARKET MATTER?
- The global robo advisory market is expected to reach a value of $41.1B by 2027, growing at a CAGR of 31.8%, according to Allied Market Research.
- The increasing demand for financial digitization, institution of supportive government policies, and advancement of technologies in the field are driving market growth. Notably, as of Q3’21, wealth tech companies had raised $12.7B — a 115% jump from 2020’s year-end total.