Vanguard agrees to acquire wealth tech platform Altruist
Vanguard has reached a deal to acquire Altruist, a wealth technology and custody business focused on financial advisers.
The companies did not reveal the financial terms of the deal.
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However, the Wall Street Journal pegged the deal value at $4bn, citing sources.
The deal adds a platform with adviser relationships, sector expertise and technology designed to support advisory workflows and client servicing.
It would provide Altruist with additional capacity and backing for investment in its adviser technology and custody operations, alongside access to Vanguard’s scale and investment capabilities.
Vanguard became an investor in Altruist in 2020.
At the time, the move was linked to efforts to increase competition in the registered investment advisor (RIA) custody market, widen access to advice and support better investor outcomes.
After the deal closes, Altruist is expected to continue as a standalone business.
It will keep its leadership team, brand, adviser focus and operating model under Vanguard’s ownership.
Altruist CEO and founder Jason Wenk said: “Altruist was built on the simple belief that when independent advisors have better technology and lower prices, they can do their best work and bring high-quality advice to more people.
“Vanguard shares our conviction in that mission, and their trusted investment expertise and resources will enable us to pursue it with greater speed and reach. I’m incredibly excited about what this will mean for advisors and their clients, and I look forward to building the future of Altruist together.”
The transaction is expected to complete later this year, subject to standard closing conditions, including regulatory approvals.
Vanguard CEO Salim Ramji said: “Many investors in Vanguard funds choose to work with financial advisors, and far more people could benefit from access to financial advice than the industry can serve today. The need is broad, but the capacity to provide high-quality advice is limited.
“Technology can help close that gap by enabling advisors to serve more people and serve them better, while preserving the human judgment and relationships at the centre of good financial advice.”
