Robinhood acquisition of TradePMR will help it offer better investment advisory services by integrating a well-established platform that serves around 350 firms and manages over $40 billion in assets.
Robinhood, the crypto-friendly financial services company, has announced its intention to acquire TradePMR, a custodial and portfolio management platform for Registered Investment Advisors (RIAs).
The two firms made an agreement to enhance Robinhood’s investment advisory capabilities via a top-ranked RIA custody and portfolio management service that has connected leading financial advisors for over 25 years.
“The TradePMR team has one of the strongest RIA networks in the industry. We’re excited to join forces to build a category-defining advisory platform for the next generation.”
Vlad Tenev, Chairman and CEO at Robinhood
Robinhood is currently focused on diversifying its services and catering to both retail and advanced traders in a competitive market. The company is responding to its customers’ growing need for personalised portfolio advice by entering the wealth management space, a $7 trillion industry. Registered Investment Advisors (RIAs) provide tailored, fiduciary financial advice based on individual goals and risk tolerance.
Combining Robinhood’s innovative technology with TradePMR’s expertise as fiduciary advisors will expand the company’s services and support the evolving needs of its customers, primarily Millennials and Gen Z, who are expected to collectively receive about $84 trillion in wealth transferred from the older generations.
The acquisition will bring a few significant mutual benefits to the Robinhood platform and TradePMR.
Firstly, Robinhood will create a referral program enabling customers to connect with trusted Registered Investment Advisors (RIAs). As TradePMR’s advisors gain access to Robinhood’s vast customer base, RIAs can grow their business while expanding options for Robinhood users.
Moreover, TradePMR’s top-tier open architecture Fusion platform will complement Robinhood’s technology, offering a unified app experience where users can view self-directed investments and managed assets in one place.
Besides, the acquisition will maintain TradePMR’s strong relationship with Wells Fargo for essential services, minimising disruptions and providing stability for RIAs and their clients. Robb Baldwin, Founder and CEO at TradePMR, and the TradePMR team will join Robinhood and ensure the maintenance of the best experience and support to RIAs.
The acquisition is expected to be finalised in the first half of 2025, subject to customary closing conditions, and is expected to be worth about $300 million.
