In Brief:
- Robo-adviser Betterment agrees to purchase automated crypto portfolio provider Makara for an undisclosed price.
- The deal will help Betterment provide consumers the ability to invest in multiple crypto portfolios besides their existing investments.
- Betterment’s product suite will be strengthened and differentiated further with the addition of Makara’s offerings to its platform.
Betterment LLC’s parent company, Betterment Holdings, Inc., has entered into an agreement to acquire Argonaut Asset Management Inc. (d/b/a “Makara”) through PJT Partners serving as financial advisor on the transaction for an undisclosed amount.
Betterment will enter the cryptocurrency market as a result of the acquisition, allowing consumers and financial advisors to invest in expert-built crypto portfolios alongside their existing Betterment investments. Also, the addition of Makara’s offerings will assist the company in expanding its product suite and platform.
Makara’s team of crypto experts and engineering talent will join Betterment upon the closing of the transaction, which is expected later this quarter subject to customary closing conditions.
“Makara is unique in offering consumers managed crypto portfolios combined with the guidance and ease-of-use that have defined Betterment. Makara is to crypto today what we are to traditional investing, since pioneering Robo-investing a decade ago,” said Sarah Levy, Betterment’s CEO.
Some information on the aforementioned companies:
Makara is among the first crypto Robo-advisors to be registered with the U.S. Securities and Exchange Commission (SEC). Customers are able to choose from a set of index-like allocations called “baskets” of assets based on their risk appetite.
Makara launched its app with a whopping response and 1 million in AUM to streamline the crypto investment experience open to US-based users.
And, Betterment is a US-based Robo-adviser that provides cash management, guided investing, retirement planning, and tax-smart strategies designed to keep taxes low to its customers.
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