Charles Schwab selling PortfolioCenter to Envestnet Tamarac

Charles Schwab selling PortfolioCenter to Envestnet Tamarac
More than 3,000 advisers use the portfolio management and reporting engine.
FEB 21, 2019

Charles Schwab is selling PortfolioCenter, a portfolio management and reporting engine used by 3,000 registered investment advisory firms, to Envestnet Tamarac. Envestnet announced the acquisition Thursday afternoon when reporting its fourth quarter 2019 earnings. Terms of the deal were not disclosed. The companies expect the deal to close in the first half of 2019. PortfolioCenter was key to Schwab Advisor Services' plan in 2010 for a cloud-based, multi-custodial portfolio manager that would have competed directly with rising third-party tools like Tamarac, Orion Advisor Services and Advent's Black Diamond. Schwab has since changed course. Under Andrew Salesky, who took over as Schwab Advisor Services senior vice president of digital adviser solutions in June, the firm is focusing more on partnering with third-party vendors while also rolling out PortfolioConnect, a next-generation portfolio manager with deep integrations into Schwab's platform. (More: New Schwab adviser technology chief Andrew Salesky brings veteran pressure to his team) Mr. Salesky said the sale is consistent with Schwab's platform strategy to go "broad and deep" with third-party integrations. The companies already have a history of partnership. PortfolioCenter actually serves as the accounting engine behind Tamarac's reporting software. "Over the years, we came to understand each other's strengths," said Tamarac executive managing director Andina Anderson. "We recognized that they had a really strong portfolio accounting engine. Their reporting wasn't as robust as ours." Schwab advisers make up a significant portion of Tamarac customers, so it only made sense to bring the technology in-house as Schwab goes in a different direction, Ms. Anderson said. Owning it will give Tamarac more control over future features and enhancements. It also ensures Schwab advisers using PortfolioCenter will continue to be supported. "We believe Tamarac is the best strategic fit to provide ongoing stewardship for the PortfolioCenter platform," Mr. Salesky said.

Latest News

Commonwealth picks up $430M husband and wife team from Osaic
Commonwealth picks up $430M husband and wife team from Osaic

Founder says switching firms has already saved him time.

Former CFA Institute exec charged with embezzling almost $5M
Former CFA Institute exec charged with embezzling almost $5M

Ex-CMO accused of using the organization’s money to fund a luxury lifestyle.

'Not every RIA needs to sell to a big aggregator'
'Not every RIA needs to sell to a big aggregator'

Altruist founder and CEO Jason Wenk shares insights on the custodial platform's refresh, how it's striking a chord among entrepreneurial advisors, and what's ahead after its latest $152 million funding round.

Northern Trust vows continued independence after BNY report
Northern Trust vows continued independence after BNY report

Following Wall Street Journal reporting from unnamed sources, the Chicago-based financial giant stressed its commitment to "delivering long-term value to our stakeholders."

California advisor who took cash from cannabis client barred
California advisor who took cash from cannabis client barred

The advisor, Andrew Nash of El Capitan Advisors, used the funds to buy a house, according to the SEC.

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.

SPONSORED Beyond the dashboard: Making wealth tech human

How intelliflo aims to solve advisors' top tech headaches—without sacrificing the personal touch clients crave