Robinhood Markets, Inc. has entered into an agreement to acquire TradePMR, a custodial and portfolio management platform for Registered Investment Advisors (RIAs).
Final deal consideration is expected to be approximately $300 million, subject to customary purchase price adjustments, consisting of a mix of cash and stock.
The acquisition is expected to close in the first half of 2025, subject to customary closing conditions, including regulatory approvals.
With over 25 years in the industry and over $40 billion in assets under administration, TradePMR will enhance Robinhood’s offering for customers by delivering an RIA custody and portfolio management platform that connects financial advisors to a new generation of investors.
This strategic acquisition 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.
Following close, 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.
TradePMR has a long-standing partnership with Wells Fargo Clearing Services, LLC, 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.
“The TradePMR team has one of the strongest RIA networks in the industry,” said Vlad Tenev, Chairman and CEO at Robinhood. “We’re excited to join forces to build a category-defining advisory platform for the next generation.”
“For many years, the advisor industry has discussed the issue of losing customers when assets transition to a spouse or to heirs,” said Robb Baldwin, Founder and CEO at TradePMR. “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 and the TradePMR team will join Robinhood and continue to focus on delivering the best experience and support to RIAs. Both Robinhood and TradePMR are committed to maintaining transparency throughout this process.
Citi served as exclusive financial advisor to Robinhood. Lazard Inc. served as exclusive financial advisor to TradePMR.
