Vanguard Group agreed to acquire Altruist, a wealth technology and custody platform serving independent financial advisers, the companies announced Wednesday. The transaction is worth around $4 billion, according to The Wall Street Journal.
Altruist's platform combines a self-clearing brokerage with tools covering account opening, trading, portfolio management, billing, and reporting for independent wealth-management firms. The company competes with Charles Schwab and Fidelity Investments in providing custodial and administrative services to independent financial advisers, according to the Wall Street Journal.
Following the close of the deal, Altruist is expected to operate as a standalone business, retaining its leadership, brand, and distinct operating model, the companies said. The transaction is subject to customary closing conditions, including regulatory approvals, and is expected to close later this year. Financial terms were not disclosed by the companies.
Vanguard first invested in Altruist in 2020, according to the company. The acquisition advances Vanguard chief executive officer Salim Ramji's broader effort to diversify the firm's revenue streams beyond its low-fee index funds by building out a financial advice business. Vanguard itself plans to become an anchor client for parts of the Altruist platform.
"Altruist's mission to make financial advice more accessible, more affordable, and help advisers scale their practices, that very much rhymes with what we're trying to do here at Vanguard," Ramji said. "That's really how this acquisition was born."
#platform #advisers #Companies
Altruist's platform combines a self-clearing brokerage with tools covering account opening, trading, portfolio management, billing, and reporting for independent wealth-management firms. The company competes with Charles Schwab and Fidelity Investments in providing custodial and administrative services to independent financial advisers, according to the Wall Street Journal.
Following the close of the deal, Altruist is expected to operate as a standalone business, retaining its leadership, brand, and distinct operating model, the companies said. The transaction is subject to customary closing conditions, including regulatory approvals, and is expected to close later this year. Financial terms were not disclosed by the companies.
Vanguard first invested in Altruist in 2020, according to the company. The acquisition advances Vanguard chief executive officer Salim Ramji's broader effort to diversify the firm's revenue streams beyond its low-fee index funds by building out a financial advice business. Vanguard itself plans to become an anchor client for parts of the Altruist platform.
"Altruist's mission to make financial advice more accessible, more affordable, and help advisers scale their practices, that very much rhymes with what we're trying to do here at Vanguard," Ramji said. "That's really how this acquisition was born."
#platform #advisers #Companies
6 days ago
