Trade Republic opens up to private equity investments from one euro
The platform aims to transform itself into a wealth management player with the possibility for its users to invest in private markets without minimum limits, thanks to the partnership with Apollo and Eqt
2' min read
Key points
2' min read
Trade Republic is proceeding with its strategy to democratise the investment sector by opening up to an ever-wider range of savers through access to new asset classes, starting with the possibility of investing in private equity for as little as one euro. Thanks to strategic partnerships with global players such as Apollo and Eqt, the savings platform is in fact aiming to grow from brokerage to wealth management by expanding its services by opening up to private markets.
This new offering gives Trade Republic clients - now ten million in 18 European markets with over EUR 150 billion under management - access to the opportunity to invest in private companies, which account for 88% of the economy. In this way, retail investors can also participate in the performance of these companies and further diversify their portfolios. This asset class has historically outperformed equity markets.
"Long-term wealth creation goes beyond a simple accumulation plan in ETFs. It is the combination of different asset classes,' says Christian Hecker, co-founder of Trade Republic. 'Everyone in Europe should have the opportunity to invest like a high net worth holder, easily, safely and at the lowest possible cost. After the expansion in banking, with current accounts and cards, this is the most significant step since our foundation. With Apollo and Eqt we have secured two of the world's leading managers in private markets as strategic partners for our clients'.
The strategy
.The bank, which will introduce two other new asset classes in the coming months, is now offering the purchase of shares in two funds of Apollo and Eqt as assets to diversify investments over the long term, with no minimum investment limits. The two funds have a performance benchmark of more than 10%. Monthly information will be provided via video on the performance of the funds with simple and immediate communication delegated to a rapper.
As these are long-term investments, characterised by low liquidity, Trade Republic will play a matchmaking role between supply and demand, looking for a buyer depending on availability, with no guarantee on timing.
