Wealth tech platform Envestnet is looking ahead to the benefits that its acquisition of Vestmark will bring to RIAs once the deal is completed.
The deal to acquire the portfolio management and trading technology provider was announced in September. Terms of the acquisition have not been disclosed, although the deal is expected to close in the fourth quarter.
With the Vestmark acquisition, Envestnet will be able to offer every trading model, spanning admin traded, sponsor traded, advisor traded, according to Sue Burton, the wealth tech’s chief marketing officer.
“They bring to us the very scaled sponsor trading - they specialize in very scaled RIAs, in bank trusts, in wirehouses, so they're supporting those models,” she told InvestmentNews at Schwab IMPACT in Boston. “That's a nice complement to Envestnet, which supports scaled broker-dealers and mid-market RIAs.”
Burton also reiterated previous comments from both Envestnet and Vestmark that there will be no forced migrations once the deal is complete. “Products will continue,” she added. “With the modularity that Vestmark brings, this allows us to meet advisors wherever they are on the operating continuum and grow with them.”
This is a busy period for Envestnet. Earlier this week the announced the launch of custom model solutions with 10 asset managers, including T. Rowe Price, BlackRock, Fidelity Investments, First Trust, Franklin Templeton, Goldman Sachs Asset Management, Invesco, Northern Trust Asset Management and Russell Investments.
Burton, who joined Envestnet earlier this year from Digital Federal Credit Union, explained that many advisors today work with managed accounts. “Custom model solutions and adaptive wealth portfolios from Envestnet allows for more advisor customization and personalization,” she said.
“This expansion is an opportunity for us to meet our clients where they are,” said Franklin Templeton’s Dan Muzzarelli.
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