ARK Invest offers ETFs, mutual funds, and other investment vehicles such as separately managed accounts that invest in companies enabling disruptive innovation in fields like artificial intelligence, genomics, and cryptocurrency.
After its founding, ARK saw little uptake in its investment products by professional investors, so it hired Resolute Investment Managers to help distribute its ETFs and mutual funds. As part of the distribution deal struck in 2016, Resolute acquired a minority stake in Ark Invest and an option that gave it the right to acquire a controlling stake in the company in early 2021.
With strong inflows into Ark Invest products over the past couple of years, due in part to ARK’s stellar performance and its track record for investing early in companies like Tesla, Resolute’s option to acquire a majority stake in the company became more attractive.
“Our business is very profitable,” Wood told Bloomberg. Ark’s flagship fund, the ARK Innovation ETF, alone generates annual revenue of $67 million based off of its AUM as of September 30. The ETF has surged 166% year-to-date as of Thursday’s close.
As part of the agreement, Ark Invest has reacquired the option from Resolute for an undisclosed sum. Wood will remain the firm’s majority shareholder, and Ark Invest will retain Resolute’s distribution services for its products in a long-term agreement. Length of the distribution agreement was not disclosed.
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