By Daniel Lanyon on Tuesday 16 August 2022
Digital wealth manager has seen its client assets double in twelve months despite more recent market turmoil.
Scalable Capital has reached €10bn of assets under management, more than double the figure one year ago, thanks, in particular, to high demand for exchange-traded funds (ETFs).
One of the first ‘robo advisers’ in Europe, Scalable Capital’s investment platform now combines wealth management, brokerage and crypto offerings. It was founded in 2014, reached a unicorn valuation last year thanks to a $180m raise led by Chinese tech giant Tencent and now employs more than 400 people at its offices in Munich, Berlin and London.
“In just a few years, our assets went from zero to ten billion euros. We’re delighted about this milestone, especially in view of the current challenging market environment. It shows that investors remain focused on their long-term wealth accumulation’, said Erik Podzuweit, co-founder and co-CEO of Scalable Capital.
‘This achievement further motivates us to enhance our offering and expand our investment platform across Europe. The entire team continues to deliver outstanding work. Together, we want to make Europe a continent of investors – and we are just getting started,” he added.
The Anglo-German company says it now has 600,000 clients on its platform using its wealth platform with ETFs the standout category for investor assets in its brokerage business with two-thirds of the clients investing in ETFs.
The younger the investor, the more popular the ETF is, with almost three-quarters of 18- to 26-year-olds investing in ETFs versus only 60 per cent of over 65s.
Scalable Capital is active in Germany, Austria, France, Italy, Spain, and the UK. As well as having a booming private clients business it also operates B2B solutions for ING, Barclays Bank in the UK, the robo-advisor Oskar and the Santander Group in Spain.