Robinhood Markets agreed to acquire TradePMR, a custodial and portfolio management platform for Registered Investment Advisors (RIAs). With 25+ years in the industry and over $40 billion in assets under administration, TradePMR will enhance Robinhood’s customer offerings by delivering a top-ranked RIA custody and portfolio management platform that connects financial advisors to a new generation of investors.
The RIA market is a multi-trillion-dollar industry and one of the fastest-growing sectors in wealth management. And RIAs provide fiduciary financial advice tailored to their clients’ individual goals, risk tolerance, and life circumstances. This deal brings together two mission-aligned companies as Robinhood enters the wealth management space, combining the skills of fiduciary advisors with Robinhood’s cutting-edge technology.
Robinhood and TradePMR plan on building a solid referral program. And new client acquisition is a top priority for most RIAs, and TradePMR’s RIAs can access a new client base through Robinhood. Following the closing, Robinhood and TradePMR intend to enhance their technology platform to make it easier for RIAs to reach Robinhood customers and grow their business at scale. This strategic acquisition should give Robinhood customers the ability to easily find and connect with RIAs.
The total investable assets held by Millennials is expected to grow over the next two decades with over $80 trillion of wealth transfer on the horizon. Robinhood has over 24 million funded customer accounts, about 75% of which are Millennials and GenZ.
In the future, Robinhood plans to build an intuitive platform for advisors and clients to view their managed assets inside the Robinhood app, all in one place alongside their self-directed investments.
TradePMR has a long-standing partnership with Wells Fargo Clearing Services, a subsidiary of Wells Fargo & Company – which provides clearing, execution, and lending services to TradePMR. Robinhood and TradePMR intend to preserve and deepen this relationship going forward, helping ensure business continuity and minimal disruption for TradePMR’s RIAs and their clients.
TradePMR founder and CEO Robb Baldwin and the TradePMR team will join Robinhood and continue to focus on delivering the best experience and support to RIAs. And both Robinhood and TradePMR are committed to maintaining transparency throughout this process.
The final deal consideration is expected to be approximately $300 million, subject to customary purchase price adjustments, consisting of a mix of cash and stock. And the acquisition is expected to close in the first half of 2025, subject to customary closing conditions, including regulatory approvals.
Citi served as exclusive financial advisor to Robinhood. And Lazard served as exclusive financial advisor to TradePMR.
KEY QUOTES:
“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
“For many years, the advisor industry has discussed the issue of losing customers when assets transition to a spouse or to heirs. Robinhood’s client base is the next generation of investors. We believe this acquisition allows us to build a multi-generational platform that will help introduce financial advisors to this next generation.”
– Robb Baldwin, Founder and CEO at TradePMR
