Robinhood goes all in on Wealth

Author

Matt Ober
November 21, 2024

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$300m for $40B in AUA! Robinhood acquires TradePMR

Robinhood just made a savvy acquisition to dive fully into wealth management with the acquisition of TradePMR. With over 350 advisors on the platform, Robinhood will not only bring all their clients to their newly acquired advisor clients, but also their modern technology and product suite.

With the degen economy in full swing, I have been bullish on $HOOD and I think it has a ton of upside over the next few years. With this acquisition the opportunity to expand into serving wealth managers is massive. At Social Leverage we have been focused on investing in wealthtech with investments in Seeds Investor, 11th Estate, Frec, Archive Intel and many others. This acquistion by Robinhood is likely going to wakeup the competitors and corp dev teams.

Distribution is key for wealthtech and wealth management has a ton of opportunity to upgrade the technology experience and product suites. Robinhood is making their entrance into the space with an experienced team that has built an award winning custodial services platform. In addition the TradePMR team brings their clearing relationship with Wells Fargo.

Robinhood is the gateway to trading and the degenerate economy. From stocks to crypto to elections bets, futures and options. They now are diving deep into wealth by allowing advisors to tap into their platform and user base. This should definitely make the younger advisors think about moving towards a Robinhood/TradePMR relationship. How this affects Altruist, Schwab, LPL and others is going to be interesting to watch unfold. Robinhood has the younger generation and cracking into the next generation of wealth management is a massive opportunity.

What's next for them? More wealthtech like direct indexing tools? Gambling access so that you can do an NFL parlay while buying some shares of $AAPL? Maybe they move to own the whole wealthtech platform and need compliance tooling for advisors to stay compliant while managing money? Lots of directions to go and as we move towards less regulation I think this is bullish for them. Arguably this is bullish for crypto given they allow for crypto trading and could offer crypto products for advisors to easily allocate to your favorite crypto currencies.

The acquisitions are just starting and this is one to keep an eye on.

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