Publicly traded discount brokerage firm Siebert Financial revealed Wednesday it has made an investment in digital wealth management platform FusionIQ.
The size of Siebert’s investment was not disclosed. As part of the deal, Siebert will deploy FusionIQ’s technology across its business.
Initially founded as a quantitative research firm, FusionIQ now offers a turnkey asset management program (Tamp) and a cloud-based wealth management platform that includes self-directed brokerage accounts for end users.
Siebert stated in a press release that the tie-up with FusionIQ will help it offer hybrid advice, self-directed investing and integrations with multiple asset custodians to its clients.
‘This partnership marks a pivotal step in reshaping our digital footprint,’ stated John Gebbia, Sr., Siebert’s chief executive ‘It’s an investment that is positioning Siebert as a digital-first partner for the next generation of investors.’
FusionIQ is led by chief executive Eric Noll, who was appointed as CEO in October of last year following the departure of previous CEO Mark Healy the month prior. Before joining FusionIQ, Noll served as the CEO of Bala Cynwyd, Pa.-based Stone Ridge Capital Partners for roughly five years.
‘With their forward-looking leadership and deep client relationships, Siebert is uniquely positioned to help us expand access to modern investing solutions,’ Noll stated in the press release. ‘This is just the beginning—together, we’ll continue to broaden our reach, enhance our offerings, and redefine how wealth is built and managed in a digital-first world.’
Based in Woburn, Mass., FusionIQ most recently raised money in October, when it closed a funding round that included commitments from new and previous investors. The company did not disclose the amount of money it raised.
Siebert was founded by Muriel Siebert in 1969, who became the first female member of the New York Stock Exchange two years earlier. She was later appointed as the superintendent of banking for New York, prior to her death in August of 2013.
Siebert has been owned by the Gebbia family since 2016, when top shareholder Gloria Gebbia purchased roughly 91% of the company for $7.8m. The firm is currently minority-backed by South Korean tech giant Kakao’s online payment branch, Kakao Pay, which purchased about 20% of Siebert for $17m in April of 2023. Late last year, a follow-up deal for Kakao Pay to purchase an additional 31.1% stake in Siebert fell apart over a ‘purchaser material adverse effect.’
As of Wednesday afternoon, shares of Siebert Financial were trading at approximately $5.20, bringing the firm’s market capitalization to about $210m.
