Vanguard agreed to acquire California-based fintech Altruist for $4.6 billion. The transaction will be completed entirely in cash.
The deal marks a significant expansion into services for independent financial advisors. Altruist provides software and custody services for registered investment advisors (RIAs).
The company offers an AI-driven platform for account opening, trading, and portfolio management. Altruist will operate as a standalone business while retaining its current leadership and brand.
This acquisition positions Vanguard to compete directly with established RIA custodians Charles Schwab and Fidelity. Vanguard was an early investor in Altruist during a 2020 funding round.