Revolut Partners With Apollo, Ares to Offer Private Equity Funds for €1 Minimum

Fintech giant Revolut Ltd. will now offer its European customers access to private equity, credit, and infrastructure funds from top-tier alternative asset managers, with a minimum investment of just €1 ($1.14), according to a report from Bloomberg.

Democratizing Alternative Assets

The London-based company, which serves more than 75 million users, is partnering with several major private capital firms. According to the report on Monday, clients in countries including France and Spain can now invest in funds managed by:

• Apollo Global Management Inc. (NYSE:APO)
• Ares Management Corp. (NYSE:ARES)
• Hamilton Lane Inc. (NASDAQ:HLNE)
• Partners Group Holding AG (SIX:PGHN)

Rolandas Juteika, Revolut’s head of wealth and trading for the European Economic Area, confirmed the €1 minimum investment threshold in an interview with Bloomberg. The move significantly lowers the barrier to entry for an asset class traditionally reserved for institutional or high-net-worth investors.

The Push for Retail Capital

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This partnership represents the latest effort by private capital firms to tap into the vast retail investor market as they seek new and diversified sources of funding. The development follows a February Bloomberg News report that Revolut was in early discussions with Apollo about such an offering.

The initiative comes at a time when many private market funds have been contending with a surge in withdrawal requests, largely from the wealthy individual investors who had fueled their recent expansion. Both Apollo and Ares are among the firms that have had to restrict redemptions from certain funds in recent months, highlighting potential liquidity constraints in these investments.

Fee Structure

Revolut will not charge its clients additional platform or transaction commissions on these investments, beyond the fees inherent to the funds themselves. A company spokesperson told Bloomberg that while fund managers do not pay to be featured, Revolut will receive retrocessions for the fund’s relevant share class. The spokesperson noted these payments are identical for all distributors of a given share class.