Robinhood Markets has agreed to acquire TradePMR, a custodial and portfolio management platform catering to registered investment advisors (RIAs), in a cash and stock deal valued at around $300m.
Based in Florida, US, TradePMR is engaged in streamlining fee-only investment advisers’ operations through custodial, operational, and trading support.
The privately held brokerage and custodian services provider has more than $40bn in assets under administration.
Through the proposed transaction, Robinhood Markets aims to bolster its advisory services and expand its offerings to a broader range of investors.
The acquisition will also enable Robinhood Markets to expand into the wealth management space, combining its innovative technology with TradePMR’s established expertise in fiduciary advisory services.
In addition, Robinhood Markets and TradePMR seek to create a best-in-class referral programme, giving TradePMR’s RIAs access to a new client base through Robinhood Markets.
The companies also intend to integrate and enhance their technology platforms post-acquisition, offering RIAs streamlined tools to scale their businesses.
Furthermore, the deal will support Robinhood Markets to address the evolving needs of its 24 million funded customer accounts, of which 75% belong to Millennials and Gen Z investors.
TradePMR’s open architecture platform, Fusion, will serve as the foundation for Robinhood Markets’ efforts to create an intuitive advisory experience.
The latter’s plans include developing a seamless interface that combines self-directed investments with managed assets, all accessible through Robinhood Markets’ app.
Robinhood Markets chairman and CEO Vlad Tenev said: “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.”
TradePMR’s ongoing partnership with Wells Fargo Clearing Services, which provides clearing, execution, and lending services, will remain intact, ensuring continuity for its RIA clients.
TradePMR’s leadership team, including CEO and founder Robb Baldwin, will join Robinhood Markets to support the transition.
Baldwin said: “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.”
Subject to regulatory approvals and customary conditions, the deal is expected to be completed in the first half of 2025.
For the transaction, Citi served as Robinhood Markets’ exclusive financial adviser, while Lazard advised TradePMR.
