Ellevest, the wealth management firm focused on serving women, is exiting the automated investing space and transferring its robo-advisory accounts to Betterment.
The move, announced by both companies, marks a shift in Ellevest’s strategy as it concentrates on financial planning and wealth management for high and ultra-high-net-worth clients.
"As we focus on our growing wealth management and financial planning business, Betterment was the natural home for our digital-first clients," said Sylvia Kwan, Ellevest CEO and CIO, said in a statement on Wednesday. "On top of automated investing, Betterment offers features that many of our digital clients have expressed interest in, including joint accounts and other cash account options."
Under the terms of the agreement, Betterment will acquire only Ellevest’s automated investing accounts and assets under management. No technology, employees, or operations are included in the transaction. The transition is expected to take place on or around April 17, 2025, and clients will have the option to opt out of the transfer.
Ellevest was founded in 2014 by Sallie Krawcheck, a former Merrill Lynch boss and brokerage executive, with a stated mission of getting more money into the hands of women. The firm’s investment approach integrates financial planning with values-based investing, particularly for women and families.
In 2022, Ellevest got additional fuel for that cause with a $53 million Series B financing round co-led by Canadian banking giant BMO and Contour Venture Partners, along with several other women-led investors. While that was a bloody year for the markets, Ellevest distinguished itself as one of the best-performing robo-advisors during the period, according to 2023 research by Condor Capital Wealth Management.
Krawcheck grabbed headlines in December with the decision to step down from the firm for health reasons. She left Kwan and Connie Hsiung, the firm's chief operating officer and CFO, to head up Ellevest as co-CEOs.
On Tuesday, $37 billion RIA giant Beacon Pointe welcomed an Ellevest alum, advisor Allison Kvikstad, as its latest partner and managing director.
Going forward, Ellevest said it will focus exclusively on clients with at least $500,000 in investable assets.
Betterment, which manages over $55 billion in assets and serves more than 900,000 customers across the US, has expanded through acquisitions in recent years, including the US advisory accounts of Wealthsimple, a Canadian robo-advice provider, in 2021 and Goldman Sachs’ Marcus Invest accounts in 2024. The company sees the Ellevest acquisition as a continuation of that growth.
"This acquisition further cements our leadership in the digital investing space," said Sarah Levy, Betterment CEO. "We look forward to welcoming Ellevest’s clients to Betterment and to continuing to support them on their wealth-building journeys."
Ellevest clients who transition to Betterment will have access to automated investing, diversified portfolios, and tax-efficient tools, as well as additional account options and human advisors.
The deal creates one of the largest independent RIA footprints in the Philadelphia metro region, with more than $30 billion in combined client assets.
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