Robinhood has announced its $300 million acquisition of TradePMR, a custodial and portfolio management platform for Registered Investment Advisors. The deal, which includes a mix of cash and stock, is expected to close in the first half of 2025, pending regulatory approvals. TradePMR manages $40 billion in assets under administration, supporting over 350 advisory firms.
This acquisition enables Robinhood to expand into wealth management by connecting its retail investors with fiduciary advisors. With Millennials and Gen Z expected to inherit $84 trillion over the next two decades, Robinhood aims to meet the growing demand for professional financial advice. Currently, Robinhood serves over 24 million funded accounts, primarily from younger investors.
As part of the deal, TradePMR will operate as a subsidiary of Robinhood, maintaining its existing relationships, including a long-standing partnership with Wells Fargo Clearing Services. Robinhood and TradePMR also plan to develop a platform to connect investors and advisors, further integrating their services to meet the evolving needs of retail and advisory markets.
The $300 million acquisition reflects a broader trend of retail-focused platforms investing in wealth management capabilities, signaling Robinhood’s commitment to diversifying its offerings and entering a competitive market.
As Millennial and Gen Z investors inherit unprecedented wealth, how will traditional advisory firms adapt to compete with tech-first platforms like Robinhood in providing personalized financial guidance?
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