Robinhood Markets has announced its agreement to acquire TradePMR, a custodial and portfolio management firm catering to registered investment advisors, for approximately $300 million in cash and stock. This acquisition marks Robinhood’s entry into the wealth management sector, targeting a rapidly expanding market valued at over $7 trillion.
“Robinhood’s client base is the next generation of investors,” said Robb Baldwin, founder and CEO of TradePMR. “We believe this acquisition allows us to build a multi-generational platform that will help introduce financial advisers to this next generation.”
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TradePMR manages over $40 billion in assets across 350 advisory firms, and the deal aims to connect Robinhood’s retail investors with professional advisors, facilitating a referral program through a shared technology platform. The transaction is set to close in the first half of 2025, pending regulatory approval, and will enable Robinhood to diversify its offerings beyond self-directed trading.
As younger investors begin to inherit significant wealth, Robinhood seeks to position itself as a leader in meeting the evolving financial needs of this demographic. This move also underscores the ongoing trend of wealth transfer to the next generation, as noted by industry experts.
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