Robinhood To Acquire TradePMR

Acquisition will accelerate Robinhood's delivery of investment advisory capabilities to customers by bringing in a scaled RIA custodial platform with approximately 350 firms and more than $40B in assets under administration.

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-Ranked 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-ranked 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.
• Continuity for RIAs Utilizing TradePMR: 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.

ABOUT TRADEPMR

For more than two decades, TradePMR has worked with growth-minded independent registered investment advisors (RIAs), providing innovative technology tools and support designed to transform their businesses. The privately held brokerage and custodian services provider (Member FINRA/SIPC), based in Gainesville, Fla., works to streamline fee-only investment advisors' operations through comprehensive custodial, operational, and trading support. For more information, visit www.TradePMR.com.

Follow TradePMR on Twitter, Facebook and LinkedIn for the latest news, updates, and event information.

ABOUT ROBINHOOD

Robinhood Markets, Inc. (NASDAQ: HOOD) transformed financial services by introducing commission-free stock trading and democratizing access to the markets for millions of investors. Today, Robinhood lets you trade stocks, options, commodity interests, and crypto, invest for retirement, and earn with Robinhood Gold. Headquartered in Menlo Park, California, Robinhood puts customers in the driver's seat, delivering unprecedented value and products intentionally designed for a new generation of investors. Additional information about Robinhood can be found at www.robinhood.com.

Contact:

TradePMR: [email protected]

Robinhood: [email protected]

1 2024 T3/Inside Information Advisor Software Survey, Joel Bruckenstein and Bob Veres, January 2024, sponsored by SEI, Advyzon, FP Alpha, Addepar, XLR8, and FMG. T3/Inside Information Survey, Joel Bruckenstein and Bob Veres, May 2022, sponsored by AssetBook, Holistiplan, Advyzon, Addepar, and Fidelity Investments. T3/Inside Information Advisor Software Survey, Joel Bruckenstein and Bob Veres, March 2021, sponsored by Salesforce, and 2019 Software Survey, Joel Bruckenstein and Bob Veres, January 2019, sponsored by Orion Advisor Services and Morningstar, Inc.

2 The Cerulli Report - U.S RIA Marketplace 2023. February 2024

3 The Cerulli Report - U.S. High-Net-Worth and Ultra-High-Net-Worth Markets 2021: Evolving Wealth Demographics. January 22, 2022. Cerulli Associates.

4 Wells Fargo Clearing Services, LLC, member SIPC, a registered broker-dealer and non-bank affiliate of Wells Fargo & Co.

Cautionary Note Regarding Forward-Looking Statements

This blog post contains forward-looking statements, regarding Robinhood Markets, Inc. (together with its consolidated subsidiaries, "we" or the "Company") and our agreement to acquire TradePMR, including (among others) statements that the acquisition will accelerate Robinhood's delivery of investment advisory capabilities to customers by bringing in a scaled RIA custodial platform with approximately 350 firms and more than $40B AUA; that TradePMR will enhance Robinhood's offering for customers by delivering a top-ranked RIA custody and portfolio management platform that connects financial advisors to a new generation of investors; that 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; that Robinhood and TradePMR plan to build a best-in-class referral program; that 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; that this strategic acquisition will give Robinhood customers the ability to easily find and connect with RIAs; that 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 horizon and that we believe this acquisition is the next step in serving these investors as their needs evolve and mature; that 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; that Robinhood and TradePMR intend to preserve and deepen Trade PMR's affiliate with Wells Fargo Clearing Services, LLC going forward, helping ensure business continuity and minimal disruption for TradePMR's RIAs and their clients; that the TradePMR team has built a remarkable platform that will help our customers access one of the strongest RIA networks in the industry; the belief that this acquisition allows us to build a multi-generational platform that will help introduce financial advisors to the next generation of investors; that Robb and the TradePMR team will join Robinhood and continue to focus on delivering the best experience and support to RIAs; and our current expectations with respect to final deal consideration and timing. Our forward-looking statements are subject to a number of known and unknown risks, uncertainties, assumptions, and other factors that may cause our actual future results, performance, or achievements to differ materially from any future results expressed or implied in this blog post. Reported results should not be considered an indication of future performance. Factors that contribute to the uncertain nature of our forward-looking statements include, among others, the risk that changes in business, economic, or political conditions that impact the global financial markets, or a systemic market event, might harm our business; the difficulty of complying with an extensive, complex, and changing regulatory environment and the need to adjust our business model in response to new or modified laws and regulations; our need to innovate and invest in new products, services, technologies, and geographies in order to attract and retain customers and deepen their engagement with us in order to maintain growth; our reliance on third parties to perform some key functions and the risk that processing, operational or technological failures could impair the availability or stability of our platforms; and the extent and nature of the demand of Robinhood customers for RIAs. Because some of these risks and uncertainties cannot be predicted or quantified and some are beyond our control, you should not rely on our forward-looking statements as predictions of future events. More information about potential risks and uncertainties that could affect our business and financial results can be found in Part II, Item 1A of our Quarterly Report on Form 10-Q for the quarter ended September 30, 2024, as well as in our other filings with the SEC, which are available on the SEC's web site at www.sec.gov. Except as otherwise noted, all forward-looking statements are made as of the date of this blog post, November 19, 2024, and are based on information and estimates available to us at this time. Although we believe that the expectations reflected in our forward-looking statements are reasonable, we cannot guarantee future results, performance, or achievements. Except as required by law, we assume no obligation to update any of the statements in this blog post whether as a result of any new information, future events, changed circumstances, or otherwise. You should read this blog post with the understanding that our actual future results, performance, events, and circumstances might be materially different from what we expect.

Public link

Please use the above public link if you want to share this noodl on another website.