Recently, a notable fintech company revealed a significant expansion in its service offerings by partnering with two prominent firms, Apollo and EQT, to provide its clients access to Private Markets. This move aims to enable users to broaden their investment horizons beyond traditional options.
In the upcoming months, additional asset classes will be introduced, set to launch at intervals of 30 days. The firm emphasizes that building long-term wealth requires more than just investing through an ETF savings plan; it entails a diversified approach across various asset classes. The strategic shift reflects the company’s transition from a brokerage model to a more comprehensive wealth management approach.
The goal of this initiative is to democratize investment opportunities, allowing individuals across Europe to access investment avenues typically reserved for wealthier clients. The company has successfully ventured into banking by offering checking accounts and cards, which marks this transition as one of its most significant developments since its inception. By collaborating with experienced managers in the Private Markets domain, the firm is poised to enhance its customer experience.
One of the key aspects of this new offering is the chance for clients to invest in private companies, which represent a substantial share of the economy. Historically, retail investors have been limited to publicly traded companies and ETFs, despite the greater potential for returns within private markets, which have consistently outperformed public markets over time.
Through this partnership, clients will gain access to a diversified global private markets portfolio backed by proven strategies, previously accessible mainly to institutional investors. This advancement allows individual investors to structure their holdings in a way that emphasizes diversification, an essential principle in wealth management strategies where stocks and ETFs usually constitute about 60% of a portfolio.
The collaboration with Apollo and EQT aims to address a broader investor base throughout Europe, paving the way for the continued democratization of private investing. This strategic partnership taps into Apollo’s expertise and leverages the innovative capabilities of the fintech firm to enhance the investment landscape for regular investors.
As the landscape of wealth management evolves, efforts like these illustrate a shift towards inclusivity, enabling retail investors to engage with markets and asset classes that have traditionally been out of reach. This development underscores the importance of access in investment opportunities, promising to reshuffle the conventional paradigms of wealth creation and management.