A coalition of more than 1,000 current and former SpaceX employees is leveraging its collective financial heft to negotiate reduced wealth management fees and specialized tax strategies ahead of the company's highly anticipated initial public offering on the Nasdaq exchange, scheduled for June 12. The group, which represents approximately $20 billion in combined assets, is targeting major wealth management firms including Morgan Stanley, Creative Planning, and Corient, according to a report from Bloomberg.
The employees are seeking advisory fees below 0.5% of assets under management, a significant discount from the standard 1% fee typically charged by financial advisors. In addition to fee reductions, the cohort is pursuing access to equity-based lending, direct indexing, and sophisticated tax-minimization structures such as variable prepaid forward contracts (VPFCs), collars, and box spreads. These strategies are designed to mitigate capital gains taxes and reduce the group's concentrated exposure to SpaceX stock.
“What’s interesting here is not that employees want financial advice. It’s that they’re recognizing their collective purchasing power and using it to negotiate access to specialized expertise,” Brian Werner, chief investment officer at Winthrop Partners, told Bloomberg. “I would not be surprised if we see more employee groups at high-growth private companies pursue similar arrangements.”
The SpaceX IPO is expected to value the company at approximately $1.75 trillion, combining Elon Musk's rocket manufacturing business with his artificial intelligence unit xAI and social media platform X. The offering is anticipated to unlock substantial liquidity for employees, many of whom hold significant equity stakes. The collective bargaining approach could set a precedent for staff at other high-growth private firms, such as Anthropic and OpenAI, which are also preparing to go public.
“Banding together into a cohort and negotiating from a position of strength is going to be, without question, the way to go,” said Dominic Corabi, co-founder of Wedmont Private Capital. “They’re going to get better terms, better pricing from custodians and product providers.”
The employee group's demands extend beyond fee reductions to include comprehensive liquidity planning, tax optimization, and concentrated position management. As the IPO approaches, advisors are increasingly focused on helping clients navigate the complexities of sudden wealth, including the need for diversification strategies and tax-efficient exit plans. A recent Morgan Stanley survey found that 63% of founders prioritize revenue growth amid AI and liquidity pressures, underscoring the importance of strategic financial planning for high-net-worth individuals.
For RIAs and wealth management firms, the SpaceX employee collective represents both a challenge and an opportunity. Firms that can offer competitive pricing and specialized services may capture a significant share of this lucrative client segment. However, the pressure to reduce fees could compress margins, particularly for smaller advisory practices. The trend toward collective bargaining may also accelerate the adoption of direct indexing and other tax-efficient investment vehicles among ultra-high-net-worth clients.
As the June 12 IPO date approaches, the SpaceX employee group's negotiations are being closely watched by the wealth management industry. If successful, the model could be replicated by employees at other pre-IPO companies, reshaping the competitive landscape for advisory services. The outcome may also influence how firms structure their offerings for concentrated stock holders, particularly in the technology and space sectors.
