Vanguard Group announced Wednesday it will acquire Altruist, a wealth-management technology platform serving independent financial advisers, for roughly $4 billion, according to a report by The Wall Street Journal.
The transaction, which is expected to close later this year, marks Vanguard’s latest push to expand its advice and wealth-management capabilities. Altruist, founded in 2018, provides technology infrastructure used by advisers to manage client portfolios and custody assets. Following completion, Altruist will operate as a separate business under Vanguard’s ownership.
Vanguard’s Chief Executive Officer Salim Ramji stated the deal would help the asset manager better serve investors who choose to work with financial advisers. "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," Ramji said.
The acquisition follows Vanguard’s 2021 purchase of Just Invest, a wealth-management technology provider, and adds to the firm’s $12 trillion in assets under management as of March 31. Altruist’s platform competes indirectly with custody services offered by rivals such as Charles Schwab and Fidelity, though financial terms of the deal were not disclosed by either party.
