Trade Republic has announced that it is broadening its services by forming strategic partnerships with Apollo and EQT, enabling clients to invest in Private Markets. This expansion signifies a significant shift in Trade Republic’s offering from merely a brokerage to a comprehensive wealth management service.
In the upcoming months, the firm will introduce two new asset classes, with each class being launched 30 days apart. The co-founder emphasized that long-term wealth creation involves a diverse mix of asset types, moving beyond standard ETF savings plans. This transition signifies a monumental step forward for the company, enhancing its services to include banking products such as checking accounts and debit cards.
With the introduction of private market investments, clients will gain access to private companies that represent 88% of the economic landscape. This presents an opportunity for retail investors to engage with these businesses and diversify their portfolios, which historically have been limited to publicly traded stocks and ETFs. This new asset class has consistently outperformed public markets over time.
The partnership with EQT allows for a globally diversified private markets portfolio, which has typically been available only to institutional investors. Research shows that professional wealth management strategies generally allocate around 60% of a portfolio to stocks and ETFs, indicating that incorporating private markets can enhance overall portfolio diversification.
The collaboration with Apollo enhances the innovation and reach of Trade Republic’s offerings, allowing them to cater to a wider array of investors across Europe. Both partners are committed to the ongoing democratization of access to private markets, traditionally seen as exclusive to wealthier investors.
Overall, this strategic initiative positions Trade Republic at the forefront of evolving investment methodologies and provides opportunities for all types of investors to partake in wealth-building strategies once limited to elite tiers of the financial landscape.