Robinhood to Acquire TradePMR in $300M Deal to Expand RIA Services

Robinhood Markets, Inc. is planning to purchase TradePMR, a custodial and portfolio management platform for Registered Investment Advisors (RIAs). The deal, valued at roughly $300 million in cash and shares, is scheduled to conclude in the first half of 2025, subject to regulatory clearances and other usual circumstances.

With over 25 years of expertise and $40 billion in assets under management, TradePMR provides a well-established platform for Robinhood. This purchase symbolizes Robinhood's strategic entry into the wealth management market, with the goal of providing RIAs with tools to interact with a new generation of investors.

Robinhood's executives expressed delight about the relationship. Vlad Tenev, CEO of Robinhood, 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.”

Robb Baldwin, CEO of TradePMR, emphasized the long-term vision: “Robinhood's client base represents the next generation of investors. We think that this purchase enables us to create a multi-generational platform that will assist expose financial advisers to the next generation.”

Following the agreement, Robinhood and TradePMR want to improve their technology, giving RIAs more access to Robinhood's user base. This program seeks to streamline interactions between RIAs and Robinhood customers, hence boosting business development at scale.

TradePMR's cooperation with Wells Fargo Clearing Services, LLC, a subsidiary of Wells Fargo & Company, will continue. Both firms want to strengthen their partnership to guarantee that RIAs and their clients may continue to work together seamlessly.

Citi and Lazard Inc. acted as financial consultants to Robinhood and TradePMR, respectively, emphasizing the strategic significance of the transaction.

Final Thoughts

This purchase aligns Robinhood with industry trends, combining conventional financial advice with cutting-edge technology. By focusing on the next generation of investors, Robinhood and TradePMR want to reinvent asset management and pave the way for multigenerational financial planning. This agreement paves the way for a strong, scalable solution that benefits both RIAs and Robinhood's tech-savvy customers.