Aug 26 (Reuters) – Vanguard Group said on Wednesday it would acquire fintech platform Altruist, giving the asset manager greater access to independent financial advisers and expanding its wealth-management capabilities.
Here are some more details:
• While the terms of the deal were not disclosed, the Wall Street Journal said the transaction was worth roughly $4 billion, citing people familiar with the matter.
• Founded in 2018, Altruist is a wealth-management technology platform used by independent financial advisers. It is a competitor to Charles Schwab and Fidelity’s custody businesses.
• “As more investors in Vanguard funds choose to work with financial advisors, we see a significant opportunity to build on the strengths of two highly complementary organizations to help advisors serve clients more effectively,” said Salim Ramji, CEO of Vanguard.
• The deal aligns with Ramji’s strategy of expanding Vanguard’s advice and wealth-management business as asset managers push further into serving affluent clients.
• Vanguard, which managed about $12 trillion in assets as of March 31, also acquired wealth-management technology provider Just Invest in 2021.
• Following the deal’s close, Altruist will continue to run as a separate business under Vanguard’s ownership.
• The transaction is expected to close later this year.
(Reporting by Pragyan Kalita in Bengaluru)
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