Endowus, the Singapore-based digital wealth advisory platform, announced Monday that it has completed its acquisition of a majority stake in Carret Private Investments Limited, a Hong Kong-based wealth manager and multi-family office that serves ultra-high-net-worth individuals, families, trusts and charitable organisations.

Endowus was established in Singapore as the first, and now the largest independent digital wealth advisor to span both private wealth (cash) and public pension savings (Central Provident Fund and Supplementary Retirement Scheme).

The firm recently announced its Hong Kong expansion plans, key management hires, and licensing by the Securities and Futures Commission of Hong Kong (SFC).

Endowus said in a statement that this acquisition furthers its commitment to bring professional independent advisory services and investment solutions to the private wealth market in Hong Kong and Singapore, which together represent over 90 percent of cross-border wealth in Asia.

Endowus will also be the first digital wealth service in Hong Kong to launch 100 percent trailer fee cashback to its clients, doubling down on its mission to make investing more affordable for everyone.

It will be a launchpad to overcome the industry pain points of high cost and misaligned incentives that often lead to poor
investment advice and outcomes for clients.

According to the statement, its acquisition of Carret Private signals its accelerating entry and commitment to serve the needs of Hong Kong investors, and its greater ambition to serve the regional wealth markets.

With this acquisition, the Endowus group of companies will now vertically integrate to serve the needs of different client segments, and to provide superior investment and advisory solutions as one of Asia’s largest independent wealth advisors across both digital and offline players.

The combined Endowus Group client assets surpassed $4 billion as of end-first half of 2022.

The Endowus Group, through Carret Private’s minority shareholding, will also have a strategic partnership with Singapore-based Lumen Capital Investors (Lumen), a Monetary Authority of Singapore (MAS)-licensed, Singapore-based wealth advisor and multi-family office.

“We are excited to announce the coming together of Endowus and Carret Private, two companies wholly focused on serving our clients as trusted independent wealth advisors,” said Samuel Rhee, Chairman and Chief Investment Officer of Endowus.

According to him, Endowus brings strength in technology and innovative WealthTech solutions that complement the deep
trusted relationships, while Carret Private has built with its broad client base in Asia.

“Endowus is doubling down on the wealth business. The combination of Endowus, Carret Private and the partnership with Lumen will allow us to scale and grow faster, and lead the industry towards greater transparency and integrity in providing the highest quality wealth advisory services as fiduciaries and the lowest cost access to solutions that help our clients achieve better outcomes,” he added.

Carret Private Managing Partner Kenneth Ho said this acquisition comes at the perfect time as the region experiences a substantial growth in independent wealth management.

“At a time when larger private banks are consolidating their bottom lines, clients are now more than ever, demanding unbiased, independent and transparent wealth advice,” he said.

“This acquisition will help Carret Private to meet the three key trends in our industry of meeting the digital demands of our clients; creating more transparent, fee driven businesses, and helping us to expand into the private markets asset class,

“We are excited for Endowus to be the engine in addressing these client needs and seizing growth opportunities for the group,” he added.

According to the statement, both firms will continue to be operated under the individual Endowus and Carret Private brands. The group’s expertise in technology, talent, systematic wealth advice, and institutional investing across the public and private markets, as well as alternatives are complementary to each other.

It said that combined with an outstanding offline and online client experience will allow both firms to holistically cater to the wealth needs of clients across the demographic spectrum.

The acquisition comes at a time when the independent wealth management and external asset management industry is beginning to burgeon in Asia, as it has in Europe, the United States and Australia over the last few decades.

As part of the expansion of solutions and services to a broader range of asset classes and client base, Endowus recently announced the introduction of new private market and alternative solutions.

Working in collaboration with leading industry players including Apollo, Blackstone, Bridgewater, Hamilton Lane, KKR, Millennium, Partners Group, and Quantedge, these partnerships will enable an expanded product offering to be made available to its accredited and professional investor base, through access to global leading private equity, hedge funds and alternative investments.

Endowus is also working with the likes of Allfunds, Antarctica and iCapital to offer best-in-class solutions and experiences for private markets.

“We are here to advance the human wealth experience through technology, bringing the right level of personalisation and automation to make expert investing better for all of us. This mission transcends online and offline, and touches everyone, from those at the beginning of their wealth journey to the ultra-wealthy,

“Together, Endowus and Carret Private have the ingredients and ambition to define the future of wealth management in Asia and to proliferate the rapid growth of independent wealth advisory services,” said Gregory Van, Chief Executive Officer of Endowus.

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