Robinhood Expands into Wealth Management with TradePMR Buy

Robinhood Markets Inc. is set to acquire TradePMR, a custodial and portfolio management platform specializing in services for Registered Investment Advisors (RIAs), in a $300 million cash and stock deal expected to close in the first half of 2025. This acquisition marks Robinhood's strategic expansion into the wealth management sector, aiming to cater to a more affluent clientele and diversify its revenue streams beyond retail trading. TradePMR, with over $40 billion in assets under administration, will bring its expertise to Robinhood, enabling RIAs to access Robinhood's user base of primarily Millennials and Gen Z. This move positions Robinhood within the $7 trillion RIA industry and aligns with the anticipated $84 trillion wealth transfer from Baby Boomers to younger generations. The acquisition also includes plans to integrate TradePMR’s technology into Robinhood’s platform, streamlining operations and providing enhanced advisory services. Robinhood's recent ventures, including cryptocurrency trading and other financial services, reflect its broader strategy to compete with established players like Charles Schwab and Fidelity Investments.