Wealthfront Corporation, a digital wealth management firm based in Palo Alto, California, has confidentially filed for an initial public offering (IPO) in the United States. The move comes as investors show increasing interest in new listings despite ongoing market volatility.
The company, valued at $1.4 billion in 2022 when its planned acquisition by UBS was scrapped, has not disclosed the terms of the offering. Uncertainty surrounding U.S. trade policies had previously caused companies to put their IPO plans on hold, but investor sentiment has shifted as new listings gain momentum.
“While concerns over trade policies, tariffs, interest rates, and conflict in the Middle East persist, markets seem to have adapted to the current volatile environment,” said Edward Best, partner at Willkie Farr & Gallagher. Recent months have seen fintech firms receive a warm welcome, with digital bank Chime and Israeli trading platform eToro surging on their debut this year.
The successful IPOs of fintech companies, including Circle’s blockbuster listing, have paved the way for upcoming offerings from crypto exchange Gemini and Swedish fintech Klarna. “Wealthfront’s IPO plans align with the recent uptick in successful U.S. IPOs, particularly from sectors less affected by trade and supply chain volatility,” said Lukas Muehlbauer, IPOX research associate.
Founded in 2008 by Andy Rachleff and Dan Carroll, Wealthfront provides automated financial tools, including cash accounts, ETF and bond investing, trading, and low-cost loans. The company has incorporated artificial intelligence into its financial planning software, building on its pioneering work in using automation for low-cost investment portfolios.
