tl;dr
Robinhood Markets, Inc. has acquired TradePMR, a portfolio management platform with $40 billion in assets under management, in a move to expand its presence in the wealth management space. The acquisition aims to tap into the $7 trillion registered investment advisor (RIA) market and leverage TradeP...
Robinhood Markets, Inc. has acquired TradePMR, a portfolio management platform with $40 billion in assets under management, in a move to expand its presence in the wealth management space. The acquisition aims to tap into the $7 trillion registered investment advisor (RIA) market and leverage TradePMR's expertise to offer personalized financial advice to Robinhood's customer base.
This acquisition follows Robinhood's previous purchases of global crypto exchange Bitstamp and AI-powered finance and research tool Pluto Capital. The deal, a mix of cash and stock, is expected to close in early 2025 pending regulatory approval.
Robinhood plans to integrate TradePMR's platform into its app, allowing customers to manage both self-directed investments and managed assets in one place. The company also intends to develop a referral program to connect fiduciary advisors with its customer network and continue innovating its wealth management services.
Robinhood's shares have gained 332% in 2024, with Q3 2024 earnings reaching $14.4 billion, marking a 114% year-over-year increase from Q3 2023. Once finalized, Robinhood aims to build a comprehensive platform that connects advisors with customers while continuing to innovate its wealth management services.
ROBINHOOD ACQUIRES TRADEPMR, EYES $90 TRILLION WEALTH TRANSFER OPPORTUNITY
Robinhood plans to use TradePMR’s expertise to provide its customers with access to personalized financial advice through RIAs. The acquisition also allows TradePMR advisors to reach Robinhood’s 24 million accounts, primarily made up of Millennials and Gen Z users.
TradePMR has been in operation for over 25 years and currently manages approximately 350 firms. This is Robinhood’s third acquisition in 2024, following their purchases of global crypto exchange Bitstamp and Pluto Capital, an AI-powered finance and research tool.
Robinhood will integrate TradePMR’s top-rated platform, Fusion, into its app. This will enable customers to view both their self-directed investments and managed assets in one place, making it easier to manage their finances.
Their shares, which jumped 1.5% before the opening bell, have gained 332% in 2024 at the time of writing. Their Q3 2024 earnings reached $14.4 billion, marking a 114% year-over-year increase from Q3 2023.
The deal, a mix of cash and stock, is expected to close in early 2025 after regulatory approval.