Robinhood is set to buy TradePMR, a custodial and portfolio management platform for registered investment advisers, for approximately $300 million.
The deal, announced Tuesday, will allow Robinhood customers to connect more easily with RIAs by bringing Robinhood customers into the folds of TradePMR’s RIAs.
“The TradePMR team has one of the strongest RIA networks in the industry,” said Vlad Tenev, chairman and CEO at Robinhood, in a prepared statement. “We’re excited to join forces to build a category-defining advisory platform for the next generation.”
Investable assets held by millennials are set to grow, with the biggest wealth transfer in history on the horizon, projected to be $84 trillion, according to a 2022 projection by market researcher Cerulli Associates. Robinhood is tapped into this generation and Gen Z, too, and the firms called the deal “the next step in serving these investors as their needs evolve and mature.”
TradePMR currently has over $40 billion in assets under administration.
“For many years, the advisor industry has discussed the issue of losing customers when assets transition to a spouse or to heirs,” said TradePMR founder and CEO Robb Baldwin in a prepared statement.
“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,” he said.
Robinhood plans to build a platform for advisers and clients to view their managed assets from within the Robinhood app itself, though it did not provide a timeline for this launch.
Neither Robinhood nor TradePMR responded to requests for comment.
This is the fintech’s second major move this year to expand beyond its day-trading core, following its announcement in June of plans to acquire crypto exchange Bitstamp, the world’s longest-running crypto exchange.
Bitstamp CEO JB Graftieaux said joining Robinhood would offer users a better trading experience and bolster compliance and security.
Robinhood also announced plans to purchase Pluto, an artificial intelligence-driven investment research platform, in July to bring enhanced data analytics and personalized investment strategies to its customers.
The cash and stock deal with TradePMR is projected to close in the first half of 2025, subject to customary closing conditions.
