Envestnet to acquire U.S.-based business of FundQuest

Move will boost firm's ongoing expansion in the managed account technology sector

Aug 5, 2011 @ 3:00 pm

By Davis D. Janowski

Turnkey technology and wealth management provider Envestnet Inc. has entered into an agreement to acquire the U.S.-based portion of FundQuest Inc. from BNP Paribas Investment Partners for $24.4 million in cash for all outstanding shares of the firm.

The deal is expected to be completed during the fourth quarter and should enable Envestnet to expand its technology offerings in the wealth management space.

Both Envestnet and FundQuest are significant national players in the managed account technology space serving financial advisers and asset managers and had already established a technology partnership in February 2010.

That partnership gave the almost 200 advisory firms on FundQuest's platform access to Envestnet's technology, operational support and additional back-office services.

With the Fundquest acquisition, that firm's approximately $6 billion in assets currently classified as assets under administration on the Envestnet platform will be reclassified to assets under management.

The US-based portion of FundQuest is a registered investment adviser based in Boston that provides managed account programs, overlay portfolio management, mutual funds, institutional asset management, and investment consulting to RIA firms, independent advisers, broker-dealers, banks, as well as trust organizations.

A statement released today announcing the planned acquisition pointed out that FundQuest “distinguishes itself from the FundQuest businesses in Europe (France and the United Kingdom) by its focus on TAMP (Turnkey Asset Management Provider), whereas the European businesses are more focused on advisory and funds of funds management.”

The release went on to state that the transaction will have no impact on the European activities of the FundQuest businesses.

In March Envestnet reported a total of $152 billion total platform assets, which includes both assets under management and under administration.

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