Altruist Buys Rival Custodial Platform SSG, Doubling Its RIA Services

Just weeks after the launch of Altruist Clearing – the RIA industry’s first all-in-one custodian – startup custodian Altruist acquired rival Shareholders Service Group, a brokerage and custodial platform that serves about 1,600 advisors throughout the country.

Financial terms of the deal were not disclosed.

San Diego-based SSG, co-founded in 2002 by Peter Mangan and Bob Reed, is an “introducing broker-dealer”, meaning it does not execute trades in its RIAs’ client accounts. Rather, SSG uses BNY Mellon’s Pershing to provide custody for client assets and clear trades.

New advisors cite low barriers to entry with no asset minimums, easy onboarding, and software offering as primary reasons they chose Altruist over custody providers such as Schwab and Fidelity.

“This acquisition enhances our mission to make financial advice better, more affordable, and accessible to everyone,” said Jason Wenk, Founder and CEO of Altruist.

Los Angeles-based Altruist was initially formed as a fintech company for RIAs, along with clearing and custody services from Apex Clearing. But now, with the launch of Altruist Clearing, it has become self-clearing.

There have never been more options for RIAs to diversify their custody relationships, which is a positive sign for the long-term health and growth of one of the fastest-growing segments in financial services. This is no accident, however, as was foreshadowed by the Schwab-TD Ameritrade merger announcement in 2019.

Broadhaven Capital Partners, an independent merchant bank, advised SSG on the deal.