Robinhood Markets, Inc. has entered into an agreement to acquire TradePMR, a custodial and portfolio management platform for Registered Investment Advisors (RIAs). 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 a top-ranked RIA custody and portfolio management platform that connects financial advisors to a new generation of investors.

The needs of Robinhood customers are evolving and they are seeking advice on how to build and manage their growing portfolios. The RIA market is a $7 trillion industry and one of the fastest growing sectors in wealth management. RIAs offer fiduciary financial advice tailored to the individual goals, risk tolerance, and life circumstances of their clients. 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.

Connecting investors to a Network of Fiduciary Advisors

Robinhood and TradePMR plan to build a best-in-class referral program. New client acquisition is a top priority for most RIAs, and TradePMR’s RIAs will be able to access a new client base through Robinhood. 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.

Serving Investors Across All Generations

The total investable assets held by Millennials is expected to grow over the next two decades with an estimated $84 trillion wealth transfer on the horizon. Today, Robinhood has more than 24 million funded customer accounts, about 75% of which are millennials and GenZ. We believe this acquisition is the next step in serving these investors as their needs evolve and mature.

Uniting Top-Ranked* Custodial Services Platform with Robinhood

TradePMR has been at the forefront of building innovative solutions and providing high-touch service to the advisor community. With its top-ranked* open architecture platform, Fusion, TradePMR provides what we believe to be an ideal match as Robinhood looks to build a seamless, cutting-edge advisory experience that enables more people to build wealth and access wealth management services. Robinhood plans to build an intuitive platform for advisors and clients to view their managed assets inside the Robinhood app, all in one place alongside their self directed investments.

Continuity for RIAs Utilizing TradePMR

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, 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.

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. Citi served as exclusive financial advisor to Robinhood. Lazard Inc. served as exclusive financial advisor to TradePMR.