Vanguard Group has agreed to acquire the fintech platform Altruist, a move that will expand its wealth-management capabilities and provide greater access to independent financial advisers. The deal is reportedly valued at approximately $4 billion.
The acquisition signifies Vanguard's strategic push into expanding its wealth-management and advisory services, aiming to capture a larger share of the affluent client market by leveraging technology platforms.
Vanguard Group announced on Wednesday its agreement to acquire the fintech platform Altruist, a move aimed at enhancing its wealth-management services and increasing its reach among independent financial advisers. While the financial terms were not officially disclosed, the Wall Street Journal reported the transaction to be worth approximately $4 billion, citing sources familiar with the matter.
Founded in 2018, Altruist provides a wealth-management technology platform utilized by independent financial advisers, positioning it as a competitor to established custody services from firms like Charles Schwab and Fidelity. Salim Ramji, CEO of Vanguard, highlighted the opportunity to combine complementary strengths to better support advisors in serving their clients effectively, aligning with his strategy to expand Vanguard's advice and wealth-management offerings.
This acquisition follows Vanguard's 2021 purchase of wealth-management technology provider Just Invest. Upon completion of the deal, expected later this year, Altruist will continue to operate as a distinct business entity under Vanguard's ownership. As of March 31, Vanguard managed approximately $12 trillion in assets.