In a strategic move to expand its reach to first-time investors in Europe, BlackRock, the world’s largest asset manager, has acquired a minority stake in Upvest, a Berlin-based digital wealth management fintech.
BlackRock led a successful 30 million euro funding round for Upvest, demonstrating the asset manager’s commitment to tapping into the growing market of new investors in the region. Upvest specializes in providing settlement and custody infrastructure for digital wealth management. The recent investment, which saw participation from existing backers such as Bessemer Venture Partners, HV Capital, Earlybird, Notion, ABN Amro Ventures, and 10x Capital, is poised to accelerate Upvest’s growth in the evolving fintech landscape.
BlackRock, overseeing an impressive $9.4 trillion, aims to leverage Upvest’s software platform. This platform enables investors, regardless of the size of their investment, to access a diverse range of products across various asset classes, including popular investment vehicles like exchange-traded funds (ETFs). The move aligns with the trend where ETF savings plans have played a pivotal role in attracting a new generation of first-time investors.
The investment comes at a critical juncture as BlackRock anticipates a significant surge in the number of first-time investors in Europe. According to BlackRock’s projections, the number is expected to reach approximately 20 million by 2026, a substantial increase from 4.9 million just two years ago. Germany stands out as a focal point for BlackRock’s expansion strategy in the continent.
This strategic alliance underscores BlackRock’s broader transformation into a comprehensive solution provider for investors, aiming to offer a one-stop-shop experience across various asset classes. The company is not only concentrating on managing assets but is also focusing on delivering technology solutions, data analytics, and financial markets advice to its clientele.
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The partnership between BlackRock and Upvest not only signifies a vote of confidence in the potential of the German fintech but also signals a commitment to facilitating financial inclusion for a growing number of new investors. As the financial landscape continues to evolve, collaborations between traditional giants like BlackRock and innovative fintechs like Upvest are poised to reshape the investment landscape, providing more accessible and diverse opportunities for investors across Europe and beyond.
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