Robinhood (NASDAQ:HOOD) has acquired TradePMR, a registered investment advisor (RIA) with $40 billion in assets under administration based in Florida.
TradePMR is said to have “one of the strongest RIA networks in the industry.” The goal is customer acquisition, and the two companies plan to build a “best-in-class referral program.”
Robinhood believes that TradePMR will be able to tap into a new customer base via Robinhood, which will allow their clients to easily connect with an RIA.
An RIA is an entity that can manage an individual’s or institution’s money. It must be registered with the SEC and hold fiduciary responsibility, meaning it is required to put the interests of its customers first. TradePMR will also bring real people to the investment mix, combining it with their tech-first platform that includes both traditional securities as well as crypto.
Robinhood will purchase the firm for an approximate valuation of $300 million, subject to certain adjustments. The purchase is expected to entail a mix of cash and stock. As shares in Robinhood have been moving dramatically higher following the election of former President Donald Trump, Robinhood will use that increase to complete the purchase.
The acquisition is expected to close in the first half of 2025, subject to customary closing conditions.
Vlad Tenev, Chairman and CEO at Robinhood, said they are looking forward to building a”category-defining advisory platform for the next generation.”
Robb Baldwin, Founder and CEO at TradePMR, described Robinhood’s customers as 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.”
The TradePMR team will be joining Robinhood.
