VALLEY FORGE, PA — Vanguard agreed to acquire wealth technology and custody platform Altruist in a deal that would deepen the asset manager’s ties to independent financial advisors and expand its access to technology designed to increase the capacity of the advice market.
Terms of the transaction were not disclosed. The companies expect the acquisition to close later this year, subject to regulatory approvals and other customary closing conditions.
Altruist will operate as a standalone business after the transaction closes, retaining its leadership, brand and operating model, according to the companies. Vanguard first invested in Altruist in 2020.
The acquisition gives Vanguard more direct exposure to registered investment advisors and their clients at a time when the company says a growing number of investors holding Vanguard funds are choosing to work with financial advisors. Altruist provides custody and wealth-management technology, including AI-enabled tools, to advisors.
Vanguard Chief Executive Officer Salim Ramji framed the transaction around an industry capacity constraint: demand for financial advice exceeds the number of clients advisors can efficiently serve.
“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 center of good financial advice,” Ramji said.
Under Vanguard ownership, Altruist is expected to gain additional resources to invest in its custody operations and advisor technology. Vanguard, meanwhile, would gain direct access to Altruist’s technology platform and closer relationships with independent advisors.
The decision to maintain Altruist as a standalone operation is intended to preserve its existing business model and advisor focus while providing financial and institutional support from Vanguard.
“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,” Altruist founder and Chief Executive Officer Jason Wenk said.
For Vanguard, the acquisition represents an expansion beyond its traditional investment-management relationship with advisors by adding ownership of infrastructure used by independent advisory firms to custody assets and manage client relationships.
The companies did not disclose the purchase price, financing structure or other financial terms of the agreement.
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