The Swiss multinational investment bank and financial services provider, UBS recently announced that it is planning to acquire Wealthfront, a prominent automated wealth management firm focused on the US market, in a deal worth $1.4 billion.

Wealthfront offers a broad range of services to facilitate clients in financial investments. In the recent announcement, David Fortunato, the CEO of Wealthfront, said that UBS has committed to letting Wealthfront operate under its brand as a standalone business.

Through the acquisition, UBS is planning to offer innovative technology-driven wealth management services to millennial and Gen Z investors. Wealthfront, which has over 470,000 clients and more than $27 billion worth of assets under management, has gained enormous popularity among US-based investors in the past few years.

The $1.4 billion deal is expected to close during the second half of 2022, subject to closing conditions and regulatory approvals. For the deal, UBS Investment Bank is serving as a financial advisor to UBS.

“Adding Wealthfront’s capabilities and client base to our global investment ecosystem will significantly boost our ability to grow our business in the US,” said Ralph Hamers, the Group Chief Executive Officer of UBS. “Wealthfront complements our core business in the US providing wealth management to high net worth and ultra-high net worth investors through trusted relationships with financial advisors, and will enhance our long-term ambition to deliver a scalable, digital-led wealth management solution to affluent investors.”

Gen Z Investors

Digital investment products are getting popular among millennial and Gen Z investors in the US. According to UBS, the acquisition will enhance the existing offering of UBS through the firm’s Wealth Advice Center.

“Partnering with UBS will allow Wealthfront to offer our clients additional value-added services and best in class research that will help accelerate our vision to make growing wealth delightfully easy,” said Fortunato.

The Swiss multinational investment bank and financial services provider, UBS recently announced that it is planning to acquire Wealthfront, a prominent automated wealth management firm focused on the US market, in a deal worth $1.4 billion.

Wealthfront offers a broad range of services to facilitate clients in financial investments. In the recent announcement, David Fortunato, the CEO of Wealthfront, said that UBS has committed to letting Wealthfront operate under its brand as a standalone business.

Through the acquisition, UBS is planning to offer innovative technology-driven wealth management services to millennial and Gen Z investors. Wealthfront, which has over 470,000 clients and more than $27 billion worth of assets under management, has gained enormous popularity among US-based investors in the past few years.

The $1.4 billion deal is expected to close during the second half of 2022, subject to closing conditions and regulatory approvals. For the deal, UBS Investment Bank is serving as a financial advisor to UBS.

“Adding Wealthfront’s capabilities and client base to our global investment ecosystem will significantly boost our ability to grow our business in the US,” said Ralph Hamers, the Group Chief Executive Officer of UBS. “Wealthfront complements our core business in the US providing wealth management to high net worth and ultra-high net worth investors through trusted relationships with financial advisors, and will enhance our long-term ambition to deliver a scalable, digital-led wealth management solution to affluent investors.”

Gen Z Investors

Digital investment products are getting popular among millennial and Gen Z investors in the US. According to UBS, the acquisition will enhance the existing offering of UBS through the firm’s Wealth Advice Center.

“Partnering with UBS will allow Wealthfront to offer our clients additional value-added services and best in class research that will help accelerate our vision to make growing wealth delightfully easy,” said Fortunato.