Vanguard Group has agreed to acquire Culver City-based wealth tech and digital custody platform Altruist, the companies announced Aug. 26.
The firms didn’t disclose terms of their “definitive agreement,” though the deal is valued at roughly $4 billion, according to the Wall Street Journal, citing people familiar with the transaction.
Vanguard first invested in Altruist in 2020 to bolster competition in the registered investment advisor arena.
“As more investors in Vanguard funds choose to work with financial advisers, we see a significant opportunity to build on the strengths of two highly complementary organizations,” said Vanguard Chief Executive Salim Ramji.
Altruist combines a self-clearing brokerage with software for account opening, trading, portfolio management, billing and reporting – positioning Vanguard against firms like Charles Schwab and Fidelity Investments in the custody market. Following the closing, Altruist will operate as a standalone business, retaining its leadership, brand and operating model, according to the release.
