Robinhood Invests $300 Million In TradePMR To Enhance Financial Services
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Robinhood has said it will buy TradePMR, a company that helps financial advisors manage their clients’ investments. TradePMR works with Registered Investment Advisors (RIAs). This move will help Robinhood start offering more services in wealth management.
According to Robinhood, the market for Registered Investment Advisors is growing quickly and is worth over $7 trillion.
Robinhood Seeks To Pair Digital-Savvy Investors With Advisory Experts
Robinhood plans to use the acquisition to connect regular tech-savvy investors to professional financial advisors who can help them grow their investments. With TradePMR’s help, Robinhood hopes to offer advice to customers in a new way.
TradePMR has a network of 350 firms and a lot of experience working with RIAs. Robinhood said that this will give them a strong foundation to build new services.
Robinhood’s Chief Executive Officer, Vlad Tenev, stated that the TradePMR team has one of the best RIA networks in the business. He also said he is excited to work with them to create a new advisory platform for the next generation of investors.
The deal includes buying TradePMR, which offers custodial and portfolio management services for Registered Investment Advisors.
Robinhood plans to use TradePMR’s experience to combine managed investments and self-directed investing into one easy platform. Robinhood also shared that it expects to inherit $84 trillion in wealth over the next years.
Robinhood and TradePMR also plan to start a program that will connect financial advisors with Robinhood’s large number of customers. This program will help advisors find new clients and offer Robinhood users access to professional financial advice.
The Acquisition Is Set To Close In The First Half Of 2025, Pending Regulatory Approval
The deal is valued at about $300 million in cash and stock. It is expected to be finished in the first half of 2025, but it still needs approval from regulators.
By buying TradePMR, Robinhood will expand its services beyond just self-directed trading and begin offering wealth management options.
Robb Baldwin, the Chief Executive Officer and founder of TradePMR talked about how financial advisors have always worried about losing customers when people pass away or leave their assets to others.
Baldwin said that Robinhood’s customers are the next generation of investors, and he believes this deal will help build a platform that connects advisors with younger clients.
TradePMR, a privately owned company based in Gainesville, Florida, will have its team join Robinhood as part of the deal.
