Company Research Report: Frec Markets, Inc.

Company Overview

• Name: Frec Markets, Inc.

• Mission: Frec aims to democratize sophisticated investing strategies traditionally reserved for the super-rich, making them accessible to everyday investors.

• Founding: Frec was founded in 2021 by Mo Al Adham.

• Key People:

• Mo Al Adham, Founder and CEO

• Sandeep Sripada, Chief Technology Officer

• Ashley Rodabaugh, Chief Compliance Officer

• Dimitri Rodrigo, Head of Brokerage Operations

• Amberly Jones, Head of Growth

• Headquarters: San Francisco, California

• Number of Employees: No information is available.

• Revenue: No information is available.

• Notable Achievements: Frec is known for its direct indexing platform that offers automated investment strategies, aiming to provide tax efficiencies and lower costs.

Products

• Frec Direct Indexing:

• Description: Allows investors to create customized portfolios that track S&P indices by owning individual stocks directly rather than through mutual funds or ETFs.

• Key Features:

• Tax-loss harvesting for capital gains offset.

• Portfolio customization by adding/removing sectors or stocks.

• Low fee structure with a 0.10% management fee.

• Automated portfolio optimization using advanced algorithms.

• Access to a treasury account with up to 5.02% yield on cash.

• Portfolio line of credit options available.

Recent Developments

• New Products and Features:

• Frec recently released an iOS mobile app to enhance accessibility to direct indexing on the go.

• Expanded their product suite with a Portfolio Line of Credit feature, allowing investors to borrow up to 70% of their portfolio value.

• Launched seven new indices, including S&P 500® Shariah and Russell 3000, expanding their direct indexing options to a total of 14 indices.

• Recent Milestones:

• Achieved $170 million in customer assets, growing from $100 million in just a few months.

• Raised $26.4 million in seed and Series A funding led by Greylock.

• Strategic Initiatives:

• Focused on serving high-net-worth self-directed investors while remaining a direct-to-consumer platform.

• Positioned to lead innovation in the direct indexing market, with a focus on low fees, tax efficiency, and simplicity.

• Partnerships and Collaborations:

• Collaborated with Russell for indices which are benchmarks for institutional investors.

No information on new partnerships outside mentioned collaborations is available.