The shift toward alternatives in wealth management is accelerating, and Fidelity’s latest move proves it’s not slowing down.    Last week, Fidelity Investments announced a strategic partnership with Envestnet to roll out alternative investment capabilities via custom model portfolios. The offering allows eligible RIAs to access private market strategies such as interval funds, tender offer funds, and alt ETFs via Fidelity’s open-architecture model platform. These models are now available on Envestnet and represent a major step forward in democratizing alternatives for advisors.    This launch directly supports a theme we’ve tracked closely: rising interest in alternatives among both advisors and platforms. It’s a trend driven by multiple forces.     Firms are racing to launch alts platforms for retail.  Advisors are seeking differentiation through non-traditional exposures.  Managers are turning to the RIA channel as institutional capital sources plateau.    As access and adoption increases, we expect current friction to subside with intentionality, notably the liquidity, transparency, and education barriers.    Fidelity is positioning itself at the intersection of these challenges and opportunities. With $41B in alternatives AUM, 60+ alternative strategies, and now, custom private market models backed by Envestnet’s infrastructure (including integrations with CAIS, Canoe, and iCapital). The offering gives advisors a turnkey solution to meet growing client demand.    Fidelity isn’t alone. BlackRock, State Street, and Franklin Templeton have also joined forces with Envestnet to expand alternatives access, underscoring the broader industry narrative: differentiation will come from deeper diversification.    As Jordan Burgess at Fidelity put it: "We’re now introducing alternatives exposure to advisors through custom model portfolios… simplifying the process for RIAs who want access to private markets."    At WealthTech Strategy Partners, we are tracking this trend closely. Whether it’s private credit, infrastructure, or hedge fund access, alternative investing is no longer just for institutions, and the platforms enabling that shift are where innovation (and investment) is flowing.

Another big funding round from the East for a digital advice/self-directed trading platform. Syfe raised a $53million Series C round lead by two UK family offices who are apparently bashful and were not named. Existing investors Unbound and Valar (Peter Theil) also participated. Syfe is a direct-to-consumer digital advice and investing platform serving the mass affluent market, which they define as slightly lower than the way we think about mass affluent in the US. They operate mainly in Singapore, but also Hong Kong and have recently expanded into Australia with the acquisition of Selfwealth last month. They now stand at $10 billion AUM, up 50% from last year, which helps underscore the size of the unserved market in places like Singapore and India in particular. We should probably point out that most people are reporting it as an $80 million raise, but that includes $27 million raised last summer, which we count as a different financing, if that matters. This brings the total amount raised to about $132 million. We continue to see the D2C digital advice business booming in India in particular but Singapore as well. The fact of the matter is that the mass affluent class is growing rapidly in those markets and there are basically zero human advisors. It takes a while for a strong personal advice industry to come online, so in the interim it will have to be solved with technology.

German digital advice and investing platform Scalable Capital announced that it raised $177 million (€155 million) in a funding round led by Sofina and Noteus Partners, both new investors. Existing investors that also participate included Blaterton Capital, Tencent, and long-term investor HV Capital. BlackRock, an existing investor, did not appear to participate. This brings the total capital raised so far to $535 million. Scalable Capital is a self-directed investing platform serving Europe. We have seen self-directed investing platforms get more attention as they look to position as a lead-gen engine for professional advice. For more information on our Self-Directed Trading as Lead-Gen theme, see our WealthTech Themes for the Next 5 Years piece.

Boston, MA – June 3, 2025 – WealthTech Strategy Partners, the only investment bank solely focused on WealthTech, today announced the formal launch of its dedicated advisory initiative for Turnkey Asset Management Platforms (TAMPs). With decades of industry insight and a growing demand for specialized strategic support, this new offering aims to connect TAMP providers, investors, and acquirers with the guidance needed to navigate a rapidly evolving market.     The initiative will center around three core service areas:  Advisory for TAMP Operators  – Helping platforms define growth strategy, improve positioning, and plan for scale or exit.  Strategic M&A and Capital Raising  – Finding the right fit and valuation for a strategic exit or growth capital.   TAMP Market Intelligence & Mapping  – Offering research, comparative analysis, and deal insights across the TAMP ecosystem.     To lead this effort, WealthTech Strategy Partners has brought on Scott MacKillop, a pioneer in the TAMP world with more than 45 years of experience building, advising, and leading firms in the space. Scott was the Founder and CEO of First Ascent Asset Management (acquired by GeoWealth in 2023) and previously served as President of Frontier Asset Management, US Fiduciary Services, and other leading platforms.     “Traditionally, TAMPs have been considered more of a service offering than a technology,” said Kendrick Wakeman, Co-Founder and CEO of WealthTech Strategy Partners. “However, the more TAMPs evolve, the more emphasis is placed on how these services are accessed, consumed, executed, and maintained. This has led to TAMPs evolving into technology platforms, often in their own right.”      WealthTech Strategy Partners invites TAMP executives, private equity firms, venture capital investors, and strategic acquirers to sign up for early access to TAMP research and be the first to receive the upcoming white paper by subscribing to the WealthTech Strategy Partners TAMP Newsletter .      About the firm: WealthTech Strategy Partners is the only investment bank solely focused on WealthTech. The firm advises early- to mid-stage technology companies and financial sponsors on capital raises, mergers & acquisitions, and strategic growth initiatives. Its team brings decades of domain expertise, purpose-built to serve innovators across the advisor technology ecosystem.     Learn more at https://www.wealthtechstrategy.com

May 27, 2025 - WealthTech Strategy Partners, the only investment bank solely focused on WealthTech advisory, has announced the addition of Scott MacKillop as a Senior Advisor to bolster its TAMP strategic advisory business. With over 45 years of experience in the financial services industry, MacKillop brings a wealth of strategic insight and leadership to support the firm’s continued growth and client success.    Throughout his distinguished career, MacKillop has led and advised numerous prominent asset management and fiduciary service firms. He was the Founder and CEO of First Ascent Asset Management, a pioneer in flat-fee investment management that he sold to GeoWealth in 2023. He has also been the President of Frontier Asset Management, US Fiduciary Services, Trivium Consulting, Portfolio Management Consultants (PMC), and ADAM Investment Services.     “Scott is perfectly positioned to help lead our efforts to build out the TAMP portion of our advisory business,” remarked Kendrick Wakeman, CEO and Co-Founder of WealthTech Strategy Partners. “I am confident that his knowledge, leadership, experience, and vision as a six-time TAMP innovator is going to be a huge benefit for our clients and the wealth management industry as a whole.”     In addition to his executive leadership, MacKillop serves on the Board of Directors for the Institute for the Fiduciary Standard, reflecting his long-standing advocacy for investor protection and best practices in advisory services.    MacKillop began his career as a lawyer in Washington, D.C., practicing from 1976 to 1991. He holds a law degree from George Washington University Law School and an undergraduate degree from Stanford University.    “Over the last 30 years, I have had the pleasure and honor of helping to move the TAMP industry forward in whatever ways I could,” said MacKillop. “With the industry changing at a record pace, I am delighted to be part of the WealthTech Strategy team helping to keep the industry moving forward in the future.”

BetaNXT, the WealthTech who, among other things, is looking to streamline the middle and back office of wealth management, has acquired Delta Data, a mutual fund sub-accounting and transaction platform. The acquisition will add fund sub-accounting and enhanced communications flows to their DataXchange platform. No terms were disclosed. Some might feel that mutual fund structures are dead, but you can't really count them out, particularly in the 401k space. The British Empire is only about 1% the size it once was and it is still one of the most powerful countries in the world.* Don't forget that. Link to article: https://www.prnewswire.com/news-releases/betanxt-acquires-delta-data-provider-of-streamlined-investment-fund-solutions-for-distributors-asset-managers-and-transfer-agents-302463756.html *The United Kingdom covers roughly 100,000 sq miles, down from a peak of about 14,000,000 sq miles for the British Empire at its peak, but it is still ranked as the 4th most powerful country in the world by US News & World Report.

Bengaluru-based WealthTech Stable Money has raised $20 million in a Series B round led by The Fundamentum Partnership Fund, a first-time investor. They were joined by existing investors Matrix Partners, RTP Global. and Lightspeed India. Naman Finance was also a new investor. The round was valued at $130 million post-money, up from $55 million last summer and $16.5 million the summer before that. Not too shabby. Stable Money is a platform that allows individual investors to choose from CDs (known as FDs in India) from a variety of banks. This allows for some rate shopping and insurance splaying. Similar to brokered CDs here in the US. The main take-away is that this is just another example of the strength of the direct-to-consumer WealthTech market in India. Just last week we saw Thundr raise $15.7 million and the Groww/Fisdom merger for $150 million. It seems that things are really heating up in Bengaluru, figuratively speaking and probably literally too. Link to article: https://www.techinasia.com/news/lightspeed-joins-20m-series-b-for-indian-wealthtech-firm

eToro's French subsidiary, eToro Patrimoine, has teamed up with French insurance giant Generali to offer PERs (the French version of an IRA) and insurance directly to its users. We see this as yet another sign that day-traders are "growing-up" and saving for retirement. As Millennials and and even some Gen Z enter the accumulation phase of their lives, we expect to continue to see the self directed trading platforms offer more accommodations for long-term investors. This includes even human advice/advisor lead gen as in the case of Robinhood's acquisition of TradePMR (see our WealthTech Themes of the Decade piece for more information about our Rise of Self-Directed Trading as Lead Gen theme). Investors in the PER product can choose from ready-made portfolios or create their own, so you might say there is some small element of robo-advice in there as well. The insurance angle is particularly interesting, in our view. Many younger folks, and even some older folks, do not carry enough life insurance, if any. And yet, many have started or are starting families. eToro could be an effective platform for fixing this. We will have to see how they execute the UX as that will be important for uptake. Robinhood and Webull should take note. Link to article: https://www.etoro.com/news-and-analysis/etoro-updates/etoro-launches-a-per-and-life-insurance-offer-in-partnership-with-generali/

Cairo-based investment platform Thndr has announced a $15.7 million funding round (USD) led by Prosus Ventures and joined by notable backers including Y Combinator, BECO Capital, JIMCO, Endeavor Catalyst, and Raba. This raise brings Thndr’s total funding to $37.76 million and signals a new phase of regional expansion across the Middle East.    Founded in 2020 by Ahmad Hammouda and Seif Amr, Thndr has emerged as a digital-first brokerage platform designed to democratize investing across MENA. Through a mobile-native experience and low-commission trading, Thndr enables access to local and U.S. equities, mutual funds, gold, and savings products, addressing a historically underserved investor base.    Thndr is doing what few platforms in MENA have been able to execute at scale:    Bridging financial access through an investment app that resonates with first-time and emerging investors.  Driving market participation: In 2024 alone, Thndr onboarded 190,000 new investors to the Egyptian Stock Exchange (EGX), accounting for 82% of all new investor registrations.  Retail leadership: The firm now handles 11% of Egypt’s total retail trading volume and holds 47% market share in gold mutual funds.  Expanding inclusivity: Female participation on the platform grew from 3% to 12%, and 40% of users now come from outside major cities, clear evidence of its reach beyond traditional financial centers.    Thndr already holds key licenses from both the Financial Regulatory Authority (FRA) in Egypt and a Category 3A license with retail endorsement from the Abu Dhabi Global Market (ADGM) FSRA, allowing it to operate in the UAE. These licenses position Thndr to scale responsibly as it deepens operations in the UAE and prepares for market entry into Saudi Arabia, a region poised for fintech acceleration.    For early backer Prosus, the reinvestment reflects growing conviction. Sandeep Bakshi, Head of Investments for Europe at Prosus, underscored Thndr’s momentum by stating  “Thndr is transforming access to investing across MENA by empowering first-time investors with the tools and confidence to participate in the financial system… Their rapid growth, particularly among young and underserved populations, underscores both the strength of their leadership and the company’s broader mission.”    According to CEO Ahmad Hammouda, Thndr aims to build the region’s “investment-first money app”, a unified platform offering regional and international products through one wallet and one account. With fewer than 2% of individuals in MENA participating in capital markets, the addressable market is massive and Thndr is positioning itself at the forefront of this transformation.  Thndr represents a compelling case study in localized WealthTech innovation. With strong backing, regulatory alignment, and a clear expansion roadmap, the company is poised to lead a generational shift in financial access across MENA. As WealthTech models scale globally, Thndr’s approach offers a glimpse into how digital infrastructure can unlock retail investment growth in emerging markets.

etops, a Swiss-based WealthTech platform owned by Pollen Street Capital, has acquired German-based retirement planning software firm FinanzPortal24. This is the fifth acquisition for etops, having also acquired: Evolute - KYC and compliance Axeed - Banking business intelligence Infinys Systems - Financial data storage and workflows CORYX - Investment management software FinanzPortal24 is a retirement planning software company with about 4,500 advisors on the platform servicing banks, brokers, insurance, and independents. No terms were disclosed for the transaction. This continues the trend we are seeing of "tuck-in" acquisitions of point solutions in the WealthTech space. As larger platforms race to become "the" WealthTech platform, they are increasingly looking to small acquisitions to pull forward their roadmap, plug a feature set gap, or access an adjacent business line. In the old days, this sort of behavior would create a heap of integration issues as companies struggled with on-prem and "lift-and-shift" technology. However, these days most early stage companies are cloud-native, operating lean and clean tech stacks, and are API-first. This often makes them quick and easy to integrate, even into a legacy platform. With the race for functionality in full swing and more reasonable valuations due to lack of venture capital activity, we expect to continue to see more such acquisitions in the future, particularly from the private equity backed platforms. Link to article: https://www.etops.com/blog/finanzportal24-becomes-part-of-etops-and-strengthens-the-groups-offering-in-financial-planning-software-2/

Groww, a personal trading and investing app in Bengaluru, India, is rumored to be acquiring Fisdom, another personal trading and investing app in Bengaluru, India. Each company is somewhat analogous to Robinhood in the US. They allow users to trade stocks, buy mutual funds, avail themselves of robo-portfolios, and even provide loans. Groww has raised almost $400mm and was last valued at $3b back in 2021. Fisdom has raised around $37mm and had revenue of around $10mm last year, or so we hear. The merger gives Groww the benefit of Fisdom's strong footprint amongst India's banks, a nice compliment to Groww's direct-to-consumer strategy. We have not seen anything official from either company yet, but the story seems to be making the rounds in the Indian press. Even if it is just a false rumor, it underscores our belief that the easiest way to make $1b in a WealthTech startup is to create a personal investing/advice platform in India. It's not so much about lead generation for professional advice, our US-based Self-Directed Trading theme, as it is about the massive amount of mass affluent that is being created in India and the relative lack of professional investment advisors. It's just math. It takes a while to develop a good wealth manager and yet the number of mass affluent is growing by leaps and bounds. Only technology can close the gap.

Betterment has announced an acquisition that strengthens its offering to advisors. Known by the masses for automated investing capabilities, Betterment as we know them has developed a quite powerful all-in-one custodial and technology solution, leading to a unique asset: a large base of retail clients, a growing segment of premium clients, as well as a deep tech infrastructure trusted by 600+ RIAs.   The acquisition of Rowboat Advisors, a provider of direct indexing and tax-optimization infrastructure sharpens this strategy. Direct indexing not only brings tax efficient customization to the advisor platform, but it also opens the door to future personalization for retail clients as their needs evolve.   Betterment’s platform now spans the full investor lifecycle:  Robo-advisor automation – Child-proof model  Self-Direct trading – Soon to launch  Premium planning service (starting at $100k) offering tax, trust, estate & more  Advisor equipped platform with PMS, onboarding, and now DI Capabilities  This progression isn’t an accident, it’s a pipeline.  As these investors accumulate wealth and complexity, the transition to premium planning or an RIA on the Betterment for Advisors platform becomes seamless, with account history, preferences and the relationship going forward.   Even if DI remains an advisor-only feature today, it’s not hard to imagine a future here a simplified version of DI is offered to self-directed users, especially if they’ve already shown interest and Betterment can automate the tax optimization behind the scenes.   Congratulations to the teams at Betterment and Rowboat for an exciting future! If you’d like to learn more about our self-directed theme, or our other themes, click here.