Vanguard Group has agreed to acquire wealth management technology company Altruist for about $4 billion, expanding the asset manager’s reach into financial advice and the growing market for independent financial advisers, according to Wall Street Journal report. The deal marks a significant step in chief executive Salim Ramji’s strategy to build businesses beyond Vanguard’s traditional focus on low-cost index funds.
The transaction, which was announced on Wednesday, 26 August, is expected to close later this year. Vanguard is the world’s 2nd largest asset management company after BlackRock.
Altruist provides technology and brokerage services to independent financial advisers, including tools for opening client accounts, managing portfolios, billing and reporting. The California-based company, founded in 2018, has emerged as a competitor to the custody businesses of Charles Schwab and Fidelity Investments.
For Vanguard, the acquisition offers a way to deepen its relationships with financial advisers who increasingly influence how investors choose and manage their investments.
"As more investors in Vanguard funds choose to work with financial advisors, we see a significant opportunity to build on the strengths of two highly complementary organizations to help advisors serve clients more effectively," Salim Ramji, Vanguard’s chief executive, said as per WSJ report.
Vanguard managed about $12 trillion in assets as of March 31 and has been expanding its presence in advice and wealth management since Ramji became chief executive in 2024.
The Altruist acquisition fits into a broader effort by Vanguard to build its advice and wealth management operations as asset managers compete more aggressively for affluent investors.
The company created a dedicated advice and wealth management division shortly after Ramji took over. It also acquired wealth management technology provider Just Invest in 2021.
Altruist gives Vanguard access to technology used by independent wealth management firms, while allowing it to strengthen ties with advisers who serve those clients.
Following completion of the transaction, Altruist is expected to continue operating as a stand-alone business, retaining its existing leadership and brand.
Altruist had raised more than $600 million in venture capital before the Vanguard deal. Its most recent funding round, in April 2025, valued the company at about $1.9 billion, WSJ reported.
Its investors have included Insight Partners, Iconiq Growth, Venrock, GIC, Salesforce Ventures, Geodesic Capital, Declaration Partners, Baillie Gifford and the Carson Family Office.
Vanguard initiated the acquisition process, WSJ reported citing people familiar with the matter, while Altruist had not been seeking a buyer.
Former Vanguard chairman and chief executive Bill McNabb is also a member of Altruist’s board.
Altruist has built its business around technology designed to simplify administrative work for independent advisers. Its platform includes a self-clearing brokerage as well as tools for account opening, portfolio management, billing and reporting.
