Robinhood to acquire TradePMR for $300 million, expanding offerings to $7 trillion RIA market

Robinhood Markets, the parent company of the popular trading app Robinhood, is set to acquire portfolio management platform TradePMR in a cash-and-stock deal valued at approximately $300 million, the companies announced on Tuesday.

The acquisition marks Robinhood’s latest move to expand its offerings and compete with traditional financial giants like Charles Schwab and Fidelity Investments. The deal was brokered with Citi advising Robinhood, while Lazard served as TradePMR’s financial adviser.

Over the past several months, Robinhood has introduced several new products, including a credit card, a desktop trading platform, futures and index options trading, and contracts for betting on the U.S. presidential election. These efforts aim to transform the company into a full-fledged financial services provider. Robinhood’s stock has soared nearly 175% in 2024, with shares up 1.2% in pre-market trading on Tuesday.

Robinhood Markets, founded in 2015 by Vlad Tenev and Baiju Bhatt, is the parent company behind the popular Robinhood app. Initially launched as a platform for commission-free trading of stocks, ETFs, and options, the app has since expanded to include cryptocurrencies such as Bitcoin (BTC), Bitcoin Cash (BCH), Bitcoin SV (BSV), Dogecoin (DOGE), Ether (ETH), Litecoin (LTC), and Ethereum Classic (ETC). Over the years, Robinhood has broadened its offerings, aiming to transition from a trading app to a full-fledged financial services provider.

The TradePMR deal, expected to close in the first half of 2025, will allow Robinhood to connect its customers with registered investment advisers (RIAs). These professionals provide fiduciary advice and asset management, operating in a market estimated to be worth $7 trillion, Reuters reported.

“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 advisers to this next generation,” said Robb Baldwin, founder and CEO of TradePMR.

TradePMR, which manages over $40 billion in assets, will bolster Robinhood’s ability to attract customers seeking more personalized financial guidance. This move aligns with Robinhood’s broader strategy to serve a diverse range of investor needs, bridging the gap between next-gen retail traders and traditional financial services.