Less than a month after shareholders approved its deal to be taken private under Bain Capital, Envestnet is expanding its product offerings and distribution capabilities to help financial advisors better serve high-net-worth and ultra-high-net-worth clients.
This move comes in response to the increasing importance of HNW and UHNW investors, who now account for over two-thirds of investable assets, according to the firm.
"Understanding the needs and expectations of HNW clients is crucial for advisors looking to grow their business and engage with this sophisticated client segment," Michael Featherman, head of advisor sales and wealth consulting at Envestnet, said in a statement Thursday.
The company said it has boosted its national distribution efforts by 50 percent within its Private Wealth Consulting busines, with.a geographically dispersed Advisor Sales and Wealth Consulting team focused on equipping HNW advisors with technology tools and wealth solutions to help attract and retain clients. Among other tools, Envestnet's wealth management platform includes tax overlay services, direct indexing solutions, and structured investments, all aimed at providing personalized advice..
Envestnet said it's bolstering its product and technology suite to offer more customized solutions, particularly in portfolio management. The firm planted the seeds for this strategy in June, when it announced it was deepening ties with a number of large asset managers including BlackRock, Fidelity, Franklin Templeton and State Street to broaden its range of customizable direct indexing and UMA model strategies available to advisors.
The firm said its private wealth consulting team is offering high-touch services for accounts exceeding $1 million, which can be tailored to meet individual client needs. Beyond that, Envestnet also introduced a Proposal Desk, supported by its Wealth Consulting team, to streamline the process of generating managed account proposals for HNW clients.
"Our enhanced product and distribution efforts... are poised to significantly benefit the industry, while also providing greater value to investors," added Featherman.
Envestnet's latest initiative focusing on advisors to the ultra-affluent comes several weeks after it shared the results of a special shareholders' meeting approving its multibillion-dollar take-private acquisition, which was led by a consortium of investors including Bain Capital and Reverence Partners. The $4.5-billion deal, first confirmed by Envestnet in July, is expected to close in the fourth quarter of this year.
The Omaha, Nebraska-based RIA's latest acquisition expands its Rocky Mountain footprint after two prior Colorado deals last year.
Operational drag between an advisor signing and accounts going live is emerging as a competitive liability for wealth management firms.
Bain says companies face a "winner's paradox" as AI transformation collides with complex integrations.
Deal lifts global assets to roughly $523 billion under management.
Choice anxiety, prestige bias, and the temptation to make selections based on outsourced confidence are just some of the parallels between investing and the world of wine tasting.
Dan Biagini of American Equity says the steady decline of pensions, longer lifespans and a reset in interest rates are rewriting how advisors build retirement income
Direct indexing is on pace to outgrow ETFs and mutual funds. Northern Trust's Ken Lassner explains why the advisors who get it wish they had started sooner.
