Vanguard Group has agreed to buy the digital wealth platform Altruist, intensifying its efforts to expand in wealth management.
Vanguard, known mostly for its low-fee index funds, will take on Altruist's
CEO Salim Ramji has been intent on building out a separate division for wealth advice and pushing Vanguard, which oversees about $12 trillion in assets, beyond its roots.
"Many investors in Vanguard funds choose to work with financial advisers, and far more people could benefit from access to financial advice than the industry can serve today," Ramji said in the statement.
Altruist, in which Vanguard first invested in 2020, provides technology that helps independent financial advisers manage their clients' money and run their businesses in one place. Altruist will operate as a standalone business, retaining its leadership and brand as well as its operating model, according to the statement.
Ramji, the first outside CEO to ever lead Vanguard, has been slowly making changes since he took over two years ago. Vanguard recently joined Blackstone Inc. and Wellington Management to start private markets funds for the wealth market. He has also been poaching talent from rivals, including Blackrock and Goldman Sachs.
The transaction is expected to be completed later this year.
