Betterment Acquires Ellevest's Robo-Advisor Business

Betterment, the largest independent digital investment advisor in the United States, has announced its acquisition of Ellevest's automated investing business. This strategic move further solidifies Betterment's leadership in the digital investing space and expands its scale. With over 900,000 customers and $55 billion in assets under management, Betterment is now the largest independent digital investment advisor in the United States. This acquisition follows other recent acquisitions, such as Wealthsimple's US advisory accounts in 2021 and Goldman Sachs' Marcus Invest accounts in 2024, which have helped Betterment grow its customer base and assets under management. By acquiring Ellevest's automated investing business, Betterment gains access to Ellevest's digital-first clients, who are likely to be interested in features such as joint accounts and other cash account options offered by Betterment. This acquisition also allows Betterment to offer Ellevest clients access to its tax-smart tools, diversified portfolios, and valuable planning resources. Additionally, Ellevest clients will have access to a range of account types, planning tools, educational resources, and human advisors through Betterment. This acquisition is expected to close on or about April 17, 2025, subject to certain closing conditions. Ellevest clients will have the option to opt out of this transfer if they choose to do so.

Betterment's acquisition of Ellevest's automated investing business is driven by several strategic motivations. First, it allows Betterment to expand its customer base by gaining access to Ellevest's digital-first clients. Second, it diversifies Betterment's product offerings by incorporating Ellevest's automated investing features. Third, it provides cost synergies by leveraging Betterment's existing infrastructure and resources to manage Ellevest's automated investing accounts more efficiently. Fourth, it enhances Betterment's talent pool by acquiring Ellevest's experienced professionals. Fifth, it strengthens Betterment's market leadership position by absorbing Ellevest's automated investing accounts and assets under management.

Ellevest, founded in 2014 by Sallie Krawcheck, is a women-focused investing and wealth management company that aims to get more money in the hands of women. Ellevest will continue to offer financial planning and wealth management services to high and ultra-high net worth individuals, families, and institutions looking to invest $500,000 or more. Betterment, founded in 2008, has grown to serve more than 900,000 customers throughout the United States and manages more than $55 billion in assets. The announcement follows other recent acquisitions by Betterment, including Wealthsimple's US advisory accounts in 2021 and Goldman Sachs' Marcus Invest accounts in 2024.

Betterment's acquisition of Ellevest's automated investing business is a significant step in the digital investing landscape. By absorbing Ellevest's automated investing accounts and assets under management, Betterment becomes one of the largest independent digital investment advisors in the United States. This acquisition allows Betterment to offer Ellevest clients access to its tax-smart tools, diversified portfolios, and valuable planning resources. Additionally, Ellevest clients will have access to a range of account types, planning tools, educational resources, and human advisors through Betterment. This acquisition is expected to close on or about April 17, 2025, subject to certain closing conditions. Ellevest clients will have the option to opt out of this transfer if they choose to do so.

In conclusion, Betterment's acquisition of Ellevest's automated investing business is a strategic move that expands Betterment's customer base, diversifies its product offerings, and strengthens its market leadership position. By gaining access to Ellevest's digital-first clients and incorporating Ellevest's automated investing features, Betterment can better serve its customers and continue to grow its assets under management. Ellevest, meanwhile, will continue to focus on its core mission of providing financial planning and wealth management services to high and ultra-high net worth individuals, families, and institutions.