Wealthtech company WealthKernel set for acquisition by Alpaca
In a significant move, US-based self-clearing broker-dealer Alpaca has announced its intention to acquire WealthKernel, a UK-based wealthtech firm specializing in digital investment infrastructure and tax-advantaged products within the UK and European Union markets. The acquisition, which is subject to customary conditions, is poised to enhance trading, custody, and wealth management offerings across these regions.
The deal, currently in process, will see Alpaca integrate WealthKernel’s licensed brokerage infrastructure into its own operations, accelerating its global expansion. Notably, the acquisition will allow Alpaca to operate as a fully authorized broker-dealer in the UK and EU markets, bypassing lengthy regulatory licensing processes and enabling faster entry and expansion in these key geographies.
WealthKernel, renowned for its work with a number of financial institutions, focuses on delivering investment and savings infrastructure for regulated businesses, emphasizing modern wealth products and scalable digital investment solutions. Its expertise in wealth management, including individual savings accounts (ISAs) and self-invested personal pensions (SIPPs), will strengthen Alpaca’s existing trading infrastructure.
Alpaca's CEO, Yoshi Yokokawa, views the acquisition as a major step towards becoming a truly global brokerage infrastructure. He highlighted that Europe is a critical growth area, especially as major fintech firms like Revolut, Monzo, and N26 expand internationally. The acquisition supports Alpaca’s mission to "open financial services to everyone on the planet" by enhancing its global brokerage infrastructure with strong local presence and partnerships in Europe, which is vital given European market preferences.
The merged organization will maintain its global presence with operations in North America, Europe, and Asia. Nadia Asoyan, Alpaca’s newly appointed chief financial officer, will bring fintech expertise from previous roles at Robinhood and Square to the entity. Karan Shanmugarajah, CEO of WealthKernel, expects the merger to allow for faster scaling of their mission while maintaining high standards.
The acquisition is pending regulatory approval from the UK Financial Conduct Authority and Spain's Comisión Nacional del Mercado de Valores. Once approved, it is expected to facilitate cross-border investing and support European fintechs expanding internationally, including those launching in the US, by offering regulated investing through a single counterparty.
The strategic acquisition aims to align with Alpaca's mission to make financial services accessible worldwide. Alpaca, headquartered in the US, provides infrastructure for trading stocks, ETFs, options, cryptocurrencies, and fixed income, having secured over $170m in funding from notable investors. The combination of a team with knowledge in brokerage operations, compliance, and financial technology is expected to create a formidable force in the global financial sector.
- The acquisition of WealthKernel by Alpaca will integrate WealthKernel's licensed brokerage infrastructure into Alpaca's operations, accelerating Alpaca's global expansion and allowing it to operate as a fully authorized broker-dealer in the UK and EU markets.
- WealthKernel's expertise in wealth management, including individual savings accounts (ISAs) and self-invested personal pensions (SIPPs), will strengthen Alpaca’s existing trading infrastructure, helping Alpaca to become a truly global brokerage infrastructure.
- The merged organization will maintain its global presence with operations in North America, Europe, and Asia, and will aim to facilitate cross-border investing and support European fintechs expanding internationally.
- The strategic acquisition aligns with Alpaca's mission to make financial services accessible worldwide, and the combination of a team with knowledge in brokerage operations, compliance, and financial technology is expected to create a formidable force in the global financial sector.
