Expansion of Trade Republic from Brokerage to Wealth Management Services
Trade Republic, a popular savings platform, has announced a significant partnership with global investment firm Apollo. This collaboration aims to broaden the horizons of investment opportunities for a wider European audience.
The partnership, according to Veronique Fournier, Head of EMEA Global Wealth at Apollo, combines Apollo's expertise with Trade Republic's innovative power, making it a significant step forward in the world of wealth management.
Trade Republic, which has already amassed over 10 million customers across 18 European markets, is growing from a brokerage into a comprehensive wealth management platform. Christian Hecker, Co-Founder of Trade Republic, expressed this growth, stating that the company is eager to expand its services beyond the realm of traditional brokerage.
As part of this expansion, Trade Republic has secured two of the most influential Private Markets managers, Apollo and EQT, as strategic partners for its customers. These partnerships will enable retail investors to access Private Markets, an asset class that accounts for a significant fraction of the total investable economy but has, until now, been largely inaccessible to individual investors.
Following its entry into banking, Trade Republic will introduce two additional asset classes in the coming months. The first of these new asset classes will be private companies, which account for 88% of the economy.
Private markets can offer greater diversification in a professional wealth management strategy, where stocks and ETFs typically make up only about 60% of a portfolio. They have historically outperformed public markets over decades, providing an attractive investment opportunity for retail investors.
Through this partnership, Trade Republic is democratizing investment in private companies, previously accessible mainly to institutional investors. By offering flexible monthly share sales and a bonus incentive for early investments, the company aims to provide every European with the opportunity to invest like the wealthy, at low cost.
Peter Beske Nielsen, Global Head of Private Wealth & Evergreen Solutions at EQT, echoed this sentiment, stating that the partnership with Trade Republic gives access to a global and diversified private markets portfolio via EQT's proven strategies.
Retail investors will now have the opportunity to participate in the performance of private companies through Trade Republic. This new partnership between Trade Republic and Apollo is giving access to private markets, an opportunity historically reserved for institutional investors.
In conclusion, this partnership between Trade Republic and Apollo marks a significant step forward in the democratization of private markets, providing retail investors with a broader set of investment opportunities and the potential for greater diversification and returns.
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