SpaceX employee group creates low-fee wealth management option with Choreo for post-IPO

A collective of current and former SpaceX employees has embarked on an ambitious initiative to manage their wealth following the company's initial public offering (IPO). This group, which boasts over 100 members, has partnered with Choreo to establish a low-fee advisory service, potentially representing a wealth pool ranging from $1 billion to $5 billion. Initially formed as an informal discussion platform centered on philanthropy, the group has evolved into a more structured effort aimed at improving financial advice access and efficiency. Sources shared that a select team from the collective assessed various financial firms before selecting Choreo to create this new wealth management option, which is open to members. Choreo, a registered investment advisory firm based in Chicago, manages over $28 billion in assets and operates more than 40 offices with a team of 200 wealth advisors. Although specific terms of the agreement remain undisclosed, it's reported that the annual management fee will be below 0.5%, positioning it favorably against the industry norm of 0.5% to 1%. This fee structure indicates a long-term partnership rather than a one-off promotional deal. This initiative marks a significant shift in the wealth management landscape, challenging traditional advisory firms that typically set fees based on individual wealth levels. By pooling their resources, the SpaceX employees are leveraging their collective financial power to negotiate better terms. The SpaceX IPO has created a wave of newly affluent individuals, many of whom were compensated with stock options rather than high salaries. The majority of these employees, particularly engineers, previously had limited wealth to manage. By reducing management fees, the group aims to allocate more of their newfound resources towards philanthropic endeavors. Members have been actively discussing ways to utilize their wealth for community benefit, with ideas ranging from scholarships to funding initiatives that enhance access to engineering, science, and math education for children. Additionally, employees from Anthropic, which has also filed for a public offering, are reportedly exploring similar collective advisory options.