Vanguard Agrees to Buy Custodian Altruist for $4.6 Billion

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Vanguard has agreed to acquire Altruist, a technology-focused custodial platform used by independent registered investment advisors (RIAs — firms that manage money and give advice under a fiduciary duty), for roughly $4.6 billion in cash. The deal, if completed, would be only Vanguard's second acquisition in its 50-year history and would put it in direct competition with the dominant custodians Charles Schwab and Fidelity Investments. Vanguard CEO Salim Ramji, hired from BlackRock in 2024, has been pushing the firm into financial advice, arguing that far more people could benefit from advice than the industry currently serves. Altruist is expected to operate as a standalone business unit, though industry analysts have raised concerns: custodial businesses carry thin margins, many of Altruist's current advisor clients are smaller and less profitable firms, and advisors who chose Altruist partly for its independence may grow wary if Vanguard funds receive preferential placement on the platform.