Robinhood (NASDAQ: HOOD) To Acquire TradePMR
Robinhood (NASDAQ: HOOD) 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 ranked1 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 management2. 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 horizon3. 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 TradePMR4. 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.