Press Release

Betterment Acquires Rowboat Advisors to Accelerate Platform for RIAs

Issued by Betterment at Work

May 14, 2025

Acquisition deepens Betterment's portfolio management capabilities, unlocking next-generation tools for tax-efficient, personalized investing

NEW YORK -- Betterment, the largest independent digital investment advisor in the U.S., today announced the acquisition of Rowboat Advisors, a leading provider of portfolio management software with advanced capabilities in direct indexing, tax optimization, and personalized investing. The acquisition strengthens Betterment's technology platform and accelerates its roadmap for delivering sophisticated tools to RIAs through Betterment Advisor Solutions.

"This marks a significant step forward in our mission to empower advisors with modern, automated investment tools," said Sarah Levy, CEO of Betterment. "Rowboat brings exceptional talent and cutting-edge technology that will help us unlock new dimensions of tax-aware, customizable investing at scale."

Founded in 2016, Rowboat Advisors developed a suite of portfolio optimization software purpose-built for investors seeking greater control, transparency, and tax efficiency. Its solutions will be integrated into Betterment Advisor Solutions, the company's all-in-one custodial platform for modern RIAs, beginning in the second half of 2025.

The deal reflects Betterment's strategic focus on expanding product capabilities for advisor clients and follows a series of product launches earlier this year, including Solo 401(k) plans and securities-backed lines of credit (SBLOCs).

Advisors can expect the following portfolio management enhancements this year, as well as direct indexing in 2026:

• Expanded single stock support: Manage portfolios across a wider range of securities, building on Betterment's growing ETF and mutual fund universe.
• Tools for more control and transparency: Run sophisticated simulations and use critical data to trade portfolios.
• Powerful automation and tax management: Optimize portfolios with enhanced rebalancing, tax-loss harvesting, tax-smart portfolio transitions, asset location and intelligent withdrawals.

"Betterment is the platform for advisor-focused innovation," said Iraklis Kourtidis, Founder & CEO, Rowboat Advisors. "We saw a unique opportunity to join forces with Betterment's infrastructure, helping more advisors access the powerful tools they need to best serve their clients."

Following the acquisition, Kourtidis will join Betterment's engineering leadership team as Vice President of Portfolio Management, reporting to Chief Technology Officer John Mileham.

To learn more about this acquisition and the Betterment Advisor Solutions roadmap, please join Betterment Advisor Solutions upcoming Leadership webinar here.

About Betterment

Betterment is the largest independent digital financial advisor, providing modern, technology-driven solutions for investing, saving, and retirement planning. Through automated portfolios, personalized financial advice, and high-yield cash management accounts, we empower customers on their wealth-building journeys. Betterment offers its products through three interlocking distribution channels: an award-winning web and mobile experience for retail investors, a 401(k)-led suite of workplace benefits through Betterment at Work, and an all-in-one custodial platform for independent RIAs through Betterment Advisor Solutions. Betterment helps nearly 1 million customers manage over $56 billion in assets. Learn more at betterment.com.

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