Robinhood to Acquire TradePMR for $300M to Expand Wealth Management

Cryptocurrency Exchange Robinhood

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Hongji Feng

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Hongji Feng

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Hongji is a crypto and tech reporter. He graduated from Northwestern University's Medill School of Journalism with a Bachelor's and a Master's. He has previously interned at HTX (Huobi Global),...

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November 19, 2024 15:28 EST

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Robinhood Markets announced on November 19 a $300 million acquisition of TradePMR to expand its wealth management services.

According to a statement from the company, the acquisition is expected to close in the first half of 2025 and will be part of Robinhood’s strategy to cater to evolving customer needs in wealth management.

Robinhood to Scale Wealth Management Offerings

Based on the statement, TradePMR, a Gainesville, Florida-based company, provides custodial and portfolio management services for Registered Investment Advisors (RIAs) and oversees over $40 billion in assets.

Robinhood unveiled plans to incorporate TradePMR’s platform into its wealth management services, offering its retail clients access to financial advisors.

The company stated that the move seeks to cater to Robinhood’s predominantly younger customer base, which includes a significant portion of Millennial and Gen Z investors.

The acquisition is expected to support advisors in managing intergenerational wealth transfers. Robinhood and TradePMR noted that such capabilities are increasingly important as a big wealth transfer is anticipated over the next two decades.

“The TradePMR team has one of the strongest RIA networks in the industry,” said Robinhood Chairman and CEO Vlad Tenev. “We’re excited to join forces to build a category-defining advisory platform for the next generation.”

Acquisition Targets Next Generation of Investors

Robinhood also stated that the transition will ensure minimal disruptions to TradePMR’s operations. TradePMR’s partnership with Wells Fargo Clearing Services will be maintained to support business continuity.

“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.

“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,” added Baldwin.

The $300 million deal, structured as a mix of cash and stock, is pending regulatory approval and standard closing conditions. Citigroup and Lazard Inc. acted as advisors to Robinhood and TradePMR, respectively.