ARK Invest, the investment firm founded by Cathie Wood, is crossing European borders with the acquisition of Rize ETF.
In the coming months, Rize will be restructured as ARK Invest Europe, becoming the European division of ARK.
News from Cathie Wood: Rize ETF will transform its Identity to ARK Invest Europe
As anticipated, ARK Invest LLC (known as “ARK Invest”), the parent company of ARK Investment Management LLC, has officially acquired Rize ETF Limited, the leading European provider of specialized thematic ETFs.
The founders of Rize ETF will remain in the expanded company, committed to maintaining the high standards that have gained appreciation in Europe.
Combining Rize ETF’s expertise in sustainable thematic indices with ARK’s highly innovative active management approach expands the range of investment options for clients.
This acquisition represents a crucial step in ARK Invest‘s global expansion strategy, paving the way for the introduction of its advanced UCITS ETFs to investors in Europe, the UK and other countries.
It also furthers the growth and spread of Rize ETF’s sustainable thematic ETFs both in Europe and globally. In 2019, four experienced ETF industry veterans – Stuart Forbes, Rahul Bhushan, Jason Kennard, and Anthony Martin – joined forces to found Rize ETF.
This company has become a leading name in Europe because of its innovative approach to creating high-quality thematic and sustainable ETFs based on solid research and bespoke designs.
Prior to their experience with Rize ETF, these founders played a key role in the creation of ETF Securities’ European UCITS ETF business, which was later acquired by Legal & General in 2018. Now, all four founders will remain at the helm to guide the growth and development of ARK Invest Europe.
Some statements regarding the latest news from ARK Invest
Cathie Wood, Founder, CIO, and CEO of ARK Invest said the following about the acquisition:
“Today’s acquisition advances ARK Invest’s commitment to offer high-quality thematic investment solutions to a global investor audience, particularly European investors who have not been able to access our products. We believe that the European ETF market presents a strong growth opportunity as new and younger investors continue to gain access to ETFs via the growth of digital platforms, and as active ETFs increase market share by meeting the demand for innovative investment exposures. We are delighted to welcome the talented Rize ETF team into the ARK family. By merging its passion for thematic and sustainable index investing with ARK’s innovative actively managed approach centered on disruptive innovation, we can offer our clients a more diverse array of investment options to invest in the future. Together, we will continue to educate and empower investors, helping them to achieve their long-term financial goals.”
On the other hand, Stuart Forbes, Co-Founder of Rize ETF adds:
“The acquisition offers ARK an entry into the European ETF market, capitalising on our expertise and track record in building multiple European ETF businesses. Leveraging ARK’s global network and our expertise in European distribution, we aim to strengthen our collective global presence. This initiative signifies not just business growth, but a collaborative exchange of global asset management best practices, insights and tactics.”
Rahul Bhushan, on the other hand, Co-Founder of Rize ETF, concludes:
“Over the past five years, we have managed to carve out a niche in thematic and sustainable ETFs. By joining forces with ARK, a leader in investment and innovation research, we are poised to offer a broader product line that spans three key growth areas in European ETFs: thematic, sustainable, and active.
This collaboration will not only bring our clients a broader range, but also foster a deeper commitment to research, not to mention our mutual dedication to sustainability.”
Rize ETF gives way to ARK Invest Europe as new products are introduced
In the near future, the Rize ETF name and brand will be phased out to make way for “ARK Invest Europe.” In this new platform, existing Rize ETF products will be re-labeled with the prefix “ARK.”
ARK Invest Europe will maintain the high standards of investment research, portfolio management and client service that distinguish ARK, while integrating Rize ETF’s extensive experience in the ETF lifecycle, from products to regulations, from operations to distribution.
ARK acquired Rize ETF from AssetCo, a UK-based asset and wealth management firm specializing in asset management.
In collaboration with AssetCo, ARK will launch new ETF products on the ARK Invest Europe platform, specifically for the business of River and Mercantile, a subsidiary of AssetCo specializing in active equity management.
It is important to note that ARK is minority owned by Nikko Asset Management.
As of 31 August 2023, Rize ETF managed $452 million through 11 UCITS ETFs, classified under SFDR Article 8 or 9 standards, based in Dublin and distributed throughout Europe.
On the other hand, ARK manages a portfolio of about $25 billion in ETFs and other products globally.