E-Trade targets mass affluent

FWR Staff

10 August 2005

Discount broker goes up market, a bit, with Kobren acquisition. One day after it said it would buy Harrisdirect from BMO Financial Group, E-Trade Financial has unveiled plans to acquire Kobren Insight Management (KIM), a private-client investment consultancy. E-Trade says the move is intended to strengthen its hand in the mass-affluent marketplace.

The firms are staying mum about the financial details of the transaction.

“The acquisition advances will bring customer relationships that can be monetized through our cash, investment and credit solutions.”

New York-based E-Trade adds that it’s keeping an eye out for wealth-management acquisitions in New York, Philadelphia, Metro D.C., Atlanta, Orlando, Chicago, Dallas, Denver, Scottsdale, San Diego, Orange County, Silicon Valley and San Francisco.

KIM will keep its name. There are no plans to reduce its staff. The Wellesley, Mass.-based firm has offices in Longboat Key, Fla., and Lincoln, Neb. It manages over $900 million in about 1,500 accounts, according to its most recent filing with the Securities and Exchange Commission. –FWR

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