(November 19, 2024) - Robinhood Markets, Inc. 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-Ranked¹ 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-ranked¹ 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.

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.

"The TradePMR team has one of the strongest RIA networks in the industry,” said Vlad Tenev, Chairman and CEO at Robinhood. “We’re excited to join forces to build a category-defining advisory platform for the next generation.”

“For many years, the advisor industry has discussed the issue of losing customers when assets transition to a spouse or to heirs,” said Robb Baldwin, Founder and CEO at TradePMR. “Robinhood’s client base is the next generation of investors. We believe this acquisition allows us to build a multi-generational platform that will help introduce financial advisors to this next generation.” Robb and the TradePMR team will join Robinhood and continue to focus on delivering the best experience and support to RIAs. Both Robinhood and TradePMR are committed to maintaining transparency throughout this process.

Final deal consideration is expected to be approximately $300 million, subject to customary purchase price adjustments, consisting of a mix of cash and stock. The acquisition is expected to close in the first half of 2025, subject to customary closing conditions, including regulatory approvals. Citi served as exclusive financial advisor to Robinhood. Lazard Inc. served as exclusive financial advisor to TradePMR.

What is happening? 
Robinhood Markets and TradePMR have entered into an agreement for Robinhood to acquire TradePMR. The strategic acquisition is a major milestone for Robinhood, as the firm works to build out a modern multi-generational financial services provider for investors and financial advisors. The acquisition will also provide a new generation of investors with access to fiduciary financial advice through a new referral program to TradePMR’s more than 350 financial advisory firms. Today, Robinhood has more than 24 million funded customer accounts. The partnership is the next step in serving investors as their needs evolve and mature.

Why this deal? Why Robinhood? 
Robinhood currently does not have an offering for financial advisors. TradePMR will step in to fill that void and continue its mission to serve financial advisors. Both organizations are culturally aligned in putting the emphasis on service and support. Robinhood is in the unique position to help advisors grow by creating a referral program for its more than 24 million investors on its platform. 

What are the terms of the deal? 
Final deal consideration is expected to be approximately $300 million, subject to customary purchase price adjustments, consisting of cash and stock. 

When will the deal close? 

The transaction is subject to customary closing conditions and is currently under regulatory review. We expect this transaction to close in the first half of 2025. 

Will there be any changes to TradePMR’s offering or are there any plans to incorporate Robinhood offerings into the Fusion platform (crypto, gold, etc.)? 

Planning is in the preliminary stages and will be communicated in a timely manner. 

Can you share additional details about the new referral program? 

Details about the new referral program that connects Robinhood investors seeking financial advice to RIA firms will be released in 2025. The program will be beta with firms that have already established investor recruiting programs. 

Will TradePMR accounts be converted to Robinhood accounts? 

No. TradePMR has a long-standing relationship with Wells Fargo Clearing Services, a subsidiary of Wells Fargo and Company, an arrangement Robinhood and TradePMR intend to preserve going forward.⁴

Will my service levels remain the same? 
We are sensitive to potential service disruptions as it relates to M&A transactions. Both Robinhood and TradePMR are committed to maintaining the high level of service TradePMR advisors are accustomed to today. 

Will there be any impact for the customers of advisors? 

No. TradePMR will continue to clear through First Clearing. Eventually, Robinhood plans on building a first-class client portal for our advisor’s end clients. 

Will TradePMR fees and pricing change? 
No.