Robinhood Markets, Inc. introduced the acquisition of the portfolio administration platform TradePMR, fueling its momentum within the wealth administration area.
Based on their announcement, TradePMR has $40 billion in property below administration and serves the $7 trillion registered funding advisor (RIA) market.
Robinhood Acquires TradePMR, Eyes $90 Trillion Wealth Switch Alternative
Robinhood plans to make use of TradePMR’s experience to supply its clients with entry to personalised monetary recommendation by way of RIAs. The acquisition additionally permits TradePMR advisors to achieve Robinhood’s 24 million accounts, primarily made up of Millennials and Gen Z customers.
“This opens up a brand new TAM for Robinhood to go after. The wealth transfer will include $90T of wealth being passed down from Baby Boomers to Millennials/Gen Z. All that wealth will likely need guidance to manage and if Robinhood can have one of the best RIA platforms for users to access, they should be able to see that wealth expand their overall business,” stated one crypto influencer on X.
TradePMR has been in operation for over 25 years and at present manages roughly 350 companies. That is Robinhood’s third acquisition in 2024, following their purchases of worldwide crypto trade Bitstamp and Pluto Capital, an AI-powered finance and analysis device.
Robinhood will combine TradePMR’s top-rated platform, Fusion, into its app. This can allow clients to view each their self-directed investments and managed property in a single place, making it simpler to handle their funds. TradePMR will keep its present partnership with Wells Fargo for clearing and execution providers.
Additionally they plan to develop a referral program designed to hyperlink fiduciary advisors with Robinhood’s intensive buyer community. This initiative intends to supply Robinhood customers with handy entry to skilled monetary steerage whereas supporting advisors in increasing their shopper base.
“This is a big NEW service they will start offering to attract the wealth management industry like myself and Revere. Robinhood is known to have captured much of the younger generation especially GenZ and onward. This is BIG,” stated one commentator on X.
Their shares, which jumped 1.5% earlier than the opening bell, have gained 332% in 2024 on the time of writing. Their Q3 2024 earnings reached $14.4 billion, marking a 114% year-over-year improve from Q3 2023.
The deal, a mixture of money and inventory, is predicted to shut in early 2025 after regulatory approval. As soon as finalized, Robinhood goals to construct a complete platform that connects advisors with clients whereas persevering with to innovate its wealth administration providers.
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