Current and former SpaceX employees, numbering over 100, have established a new wealth management option with Choreo, a Chicago-based registered investment advisor. This initiative is significant as it represents a collective effort to manage an estimated $1 billion to $5 billion in wealth generated from the SpaceX IPO.
The group aims to secure lower fees, with a management fee structure under 0.5%, which is below the industry standard of 0.5% to 1%. This move not only highlights the financial power of the SpaceX IPO but also reflects a shift in the wealth management industry, where collective bargaining could lead to better terms for wealthy individuals.
The SpaceX employees, many of whom were previously underpaid engineers compensated with stock, are also focusing on philanthropy, planning to use their newfound wealth to support educational initiatives and community programs.
Additionally, employees from Anthropic are exploring similar collective advisory options, indicating a potential trend among tech employees seeking better financial management solutions