Envestnet boosts efforts at HNW and UHNW advisor support

Envestnet boosts efforts at HNW and UHNW advisor support
The wealth tech behemoth is expanding its distribution and product suite to address the increasingly important space.
OCT 10, 2024

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.

Latest News

SEC charges Chicago-based investment adviser with overbilling clients more than $2.5M in fees
SEC charges Chicago-based investment adviser with overbilling clients more than $2.5M in fees

Eliseo Prisno, a former Merrill advisor, allegedly collected unapproved fees from Filipino clients by secretly accessing their accounts at two separate brokerages.

Apella Wealth comes to Washington with Independence Wealth Advisors
Apella Wealth comes to Washington with Independence Wealth Advisors

The Harford, Connecticut-based RIA is expanding into a new market in the mid-Atlantic region while crossing another billion-dollar milestone.

Citi's Sieg sees rich clients pivoting from US to UK
Citi's Sieg sees rich clients pivoting from US to UK

The Wall Street giant's global wealth head says affluent clients are shifting away from America amid growing fallout from President Donald Trump's hardline politics.

US employment report reactions: Overall better than expected, but concerns with underlying data
US employment report reactions: Overall better than expected, but concerns with underlying data

Chief economists, advisors, and chief investment officers share their reactions to the June US employment report.

Creative Planning's Peter Mallouk slams 'offensive' congressional stock trading
Creative Planning's Peter Mallouk slams 'offensive' congressional stock trading

"This shouldn’t be hard to ban, but neither party will do it. So offensive to the people they serve," RIA titan Peter Mallouk said in a post that referenced Nancy Pelosi's reported stock gains.

SPONSORED How advisors can build for high-net-worth complexity

Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.