Wealthfront Corp. is exploring a sale that could value the automated wealth manager at as much as $1.5 billion, according to people familiar with the matter.
The Palo Alto, California-based company is working with a financial adviser as it considers options, said the people, who asked to not be identified because the matter isn’t public.
Wealthfront has drawn interest from potential buyers including banks and special purpose acquisition companies, they said. No final decision has been made and Wealthfront could opt to remain independent.
Representatives for Wealthfront didn’t respond to requests for comment.
Started in 2008, Wealthfront was one of the first so-called robo-advisers, or wealth managers that rely on apps that charge low fees and use algorithms to make trading decisions.
These upstarts have upended the wealth and asset management industries by displacing active managers, who rely on their own expertise to place money. Investment giants such as Charles Schwab Corp. and brokerages including Morgan Stanley have since branched into the space.
Wealthfront has moved into other financial services in recent years, such as cash accounts and payments services. It has raised money from backers including Tiger Global Management, Benchmark Capital and Greylock Partners, according to a statement in 2018. That funding round valued the company at about $500 million, Bloomberg News reported at the time.
Also, Summit Wealth Group nabs a Commonwealth advisor in Tennessee, Oxford Financial adds two managing directors, and Verdence draws an ultra-high-net-worth advisor from Fidelity.
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LPL Financial and Raymond James also add independent advisors from Osaic and Edward Jones in Michigan and Arizona.
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