Vanguard strikes deal for fintech platform Altruist

Vanguard Group announced Wednesday it will acquire the fintech platform Altruist, a move that will significantly expand the asset manager's reach among independent financial advisers and bolster its wealth-management services.

The terms of the deal were not disclosed, but the Wall Street Journal reported the transaction is valued at approximately $4 billion, citing sources familiar with the matter. Altruist, established in 2018, operates as a wealth-management technology platform catering to independent financial advisers, positioning itself as a rival to the custody services offered by giants like Charles Schwab and Fidelity.

Salim Ramji, CEO of Vanguard, stated that the acquisition presents a "significant opportunity" to enhance how advisers serve their clients. "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. This acquisition aligns with Ramji's broader strategy to grow Vanguard's advice and wealth-management business, particularly as asset managers increasingly target affluent clients.

Vanguard, which managed about $12 trillion in assets as of March 31, previously acquired wealth-management technology provider Just Invest in 2021. Following the completion of the current deal, Altruist is expected to continue operating as a distinct entity under Vanguard's ownership. The transaction is anticipated to close later this year.

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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.