Betterment acquires Ellevest’s automated investing business

Digital investment advisor Betterment has acquired the automated investing business of Ellevest, an investing and wealth management company targeting women.

Betterment today serves more than 900,000 customers throughout the US and manages more than $55 billion in assets. Ellevest was founded in 2014 and it raised over $150 million in funding. Allianz Life is one backer.

With the acquisition, Ellevest will focus on financial planning and wealth management. Betterment will only be acquiring Ellevest automated investing accounts and assets under management; it will not be acquiring any additional accounts, technology, employees, or operations as a part of the transaction.

“This acquisition further cements our leadership in the digital investing space. We look forward to welcoming Ellevest’s clients to Betterment and to continuing to support them on their wealth-building journeys.” – Sarah Levy, Betterment CEO.

“As we focus on our growing wealth management and financial planning business, Betterment was the natural home for our digital-first clients. 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. We built a platform that makes it easy to invest in a way that works for our clients’ needs, goals, and values — and the same is true of Betterment under the leadership of their CEO, Sarah Levy.” – Dr. Sylvia Kwan, Ellevest CEO and CIO.