SpaceX employees create low-fee Choreo wealth management plan for post-IPO
CNBC • • business
Key Points:
- A group of over 100 current and former SpaceX employees, managing between $1 billion and $5 billion in post-IPO wealth, has partnered with Choreo to create a low-fee, long-term wealth advisory option.
- The new offering features an annual management fee below 0.5%, significantly undercutting the typical industry standard of 0.5% to 1%, aiming to leverage their collective financial scale for better terms.
- This initiative reflects the impact of the SpaceX IPO, which has created numerous newly minted millionaires, many of whom were compensated with stock rather than high salaries.
- Members intend to use the reduced fees to allocate more funds towards philanthropy, including scholarships and programs supporting STEM education for children.
- Similarly, employees of Anthropic, another company preparing to go public, are exploring collective wealth management options with advisory firms.