Robinhood to Acquire TradePMR in $300 Million Deal

Robinhood has agreed to acquire TradePMR for $300M, expanding its wealth management services and connecting RIAs with a new generation of investors.

Key Points: 

• Robinhood acquires TradePMR: Robinhood will acquire TradePMR for $300 million, with the deal expected to close in 2025.
• Expanding wealth management: The acquisition enhances Robinhood’s wealth management platform by connecting RIAs with next-gen investors.

Robinhood Markets, Inc. has agreed to acquire TradePMR, a prominent custodial and portfolio management platform serving Registered Investment Advisors (RIAs), in a move designed to strengthen the company’s expanding wealth management services. The transaction is valued at approximately $300 million, subject to customary purchase price adjustments, and Robinhood will pay it in a combination of cash and stock.

The deal, expected to close in the first half of 2025, is still pending regulatory approvals and other customary closing conditions. Upon completion, the acquisition will enhance Robinhood’s offerings by incorporating TradePMR’s robust platform, which currently supports over $40 billion in assets under administration.

Founded more than 25 years ago, TradePMR has earned a strong reputation in the industry for its custodial and portfolio management solutions tailored to financial advisors. The addition of TradePMR will also enable Robinhood to provide a seamless connection between fiduciary advisors and its growing base of next-generation investors, aligning with Robinhood’s mission to democratize finance for all.

Robinhood to Acquire TradePMR in $300 Million Deal

“This acquisition marks an exciting chapter for Robinhood as we enter the wealth management space,” said Vlad Tenev, Chairman and CEO of Robinhood. “The TradePMR team has one of the strongest RIA networks in the industry, and we’re thrilled to combine their expertise with our cutting-edge technology to create a category-defining advisory platform for the next generation.”

Following the close of the acquisition, Robinhood and TradePMR will collaborate to enhance the platform’s technology, making it easier for RIAs to reach and connect with Robinhood’s diverse customer base. This strategic development aims to help RIAs scale their businesses while allowing Robinhood users to easily find and collaborate with trusted financial advisors.

TradePMR has long maintained a partnership with Wells Fargo Clearing Services, a subsidiary of Wells Fargo & Company, which offers clearing, execution, and lending services to the platform. Robinhood and TradePMR plan to maintain and deepen this relationship, ensuring minimal disruption for TradePMR’s RIAs and their clients.

“We are excited to introduce this next-generation platform to financial advisors,” said Robb Baldwin, Founder and CEO of TradePMR. “For years, the advisory industry has faced challenges when assets transition to heirs or spouses. Robinhood’s client base represents the next generation of investors, and this acquisition will help us build a multi-generational platform that introduces financial advisors to a whole new wave of clients.”

Robb Baldwin and the TradePMR team will remain with Robinhood, focusing on delivering outstanding service and support to RIAs. Both companies have pledged to maintain transparency throughout the integration process. Citi served as Robinhood’s exclusive financial advisor, while Lazard Inc. advised TradePMR on the transaction.

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