Vanguard to Acquire Altruist, Expanding RIA Custody Strategy

Vanguard has agreed to acquire Altruist, giving the asset-management giant direct ownership of a fast-growing technology and custody platform serving independent registered investment advisers.

Financial terms were not disclosed, although The Wall Street Journal reported that the transaction values Altruist at approximately $4 billion. The acquisition is expected to close later this year, subject to regulatory approvals and customary conditions.

Founded in 2018 by CEO Jason Wenk, Altruist combines custody with account opening, trading, portfolio management, billing, reporting and artificial intelligence tools. The Los Angeles-based company says its platform serves more than 6,000 advisers and has raised over $600 million from investors, including Vanguard, Insight Partners, ICONIQ, GIC and Salesforce Ventures.

Vanguard initially invested in Altruist in 2020 as part of an effort to increase competition in the RIA custody market and expand access to financial advice.

“Technology can help close that gap by enabling advisers to serve more people and serve them better, while preserving the human judgment and relationships at the center of good financial advice,” Vanguard CEO Salim Ramji said.

The acquisition gives Vanguard a closer connection to independent advisers who use its funds while adding technology that could help advisory firms automate workflows and increase capacity. Altruist, meanwhile, gains additional capital and access to Vanguard’s investment expertise and scale.

“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,” Wenk said.

Altruist is expected to remain a standalone business after closing, retaining its brand, leadership, adviser focus and operating model. The arrangement is intended to preserve the company’s entrepreneurial culture while supporting further investment in its technology and custody services.