Online brokerage Robinhood Markets revealed Tuesday that it has entered into an agreement to acquire TradePMR, a custodial and portfolio management platform for Registered Investment Advisors (RIAs). 

The deal, valued at approximately $300 million, is expected to close in the first half of 2025.

TradePMR, with over 25 years of experience and $40 billion in assets under administration, is expected to enhance Robinhood’s offering by providing a top-ranked RIA custody and portfolio management platform. 

The RIA market is said to be a $7 trillion industry and “one of the fastest-growing sectors in wealth management.”

This acquisition aligns with Robinhood’s strategy to expand into wealth management and cater to the evolving needs of its customers, particularly Millennials and Gen Z.

Through the acquisition, Robinhood will gain access to a new customer base through TradePMR’s extensive network of RIAs, while TradePMR will benefit from Robinhood’s technology and large customer base.

Following the news, JMP Securities analysts said the acquisition has strong strategic merits and they are not surprised by the deal.

They view the RIA custodial space as a complementary adjacency for Robinhood, saying it will leverage its existing infrastructure and capabilities to tap into a growing market with long-term secular tailwinds.

The firm believes the acquisition will be modestly accretive initially, with a much more material long-term opportunity. JMP Securities maintains an Outperform rating on Robinhood with a price target of $40.

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