Envestnet

Envestnet, Inc. operates as a financial technology corporation, providing wealth management software and products to financial advisors and institutions. The company was established in 1999 by a team of co-founders including Jud Bergman, Bill Crager, Brandon Thomas, and James Lumberg. The founding team, many of whom came from Nuveen, recognized a burgeoning trend of financial advisors moving towards independence and requiring integrated technology platforms similar to those at large wirehouses. Jud Bergman, who had been head of mutual funds at Nuveen, was a driving force behind this vision, anticipating the critical role technology and data would play in the future of financial advice.

The firm's core offering is a unified advisory platform that integrates a wide array of services and software essential for wealth management. This includes portfolio management, trading and rebalancing tools, financial planning software, and comprehensive reporting and analytics. The platform provides financial advisors with access to a diverse marketplace of investment products and strategies, enabling them to offer tailored solutions to their clients. Envestnet primarily serves financial advisors, registered investment advisors (RIAs), broker-dealers, and major financial institutions like banks. As of mid-2024, the platform supported over 110,000 advisors and held approximately $6.5 trillion in assets.

Envestnet's revenue model is multifaceted, primarily relying on recurring fees. A significant portion of its income is derived from asset-based fees, calculated as a percentage of the assets managed or administered on its platform. The company also generates substantial revenue from subscription-based fees for access to its technology platform and tools, operating on a Software-as-a-Service (SaaS) basis. Additional revenue comes from professional services, which include consulting, training, and data and analytics services provided through its Envestnet | Yodlee segment. The company went public on July 28, 2010, raising $63 million. A major strategic move was the acquisition of Yodlee, a data analytics and account aggregation company, for $660 million in 2015, significantly enhancing its data intelligence capabilities. In November 2024, a consortium of investors led by Bain Capital completed a $4.5 billion acquisition of Envestnet, taking the company private.

Keywords: wealth management technology, financial advisor platform, TAMP, turnkey asset management platform, RIA technology, portfolio management software, financial planning software, Envestnet | Yodlee, data aggregation, investment management solutions, financial services technology, asset-based fees, SaaS for advisors, wealth solutions, broker-dealer solutions, client reporting tools, portfolio rebalancing, Jud Bergman, Bill Crager, financial wellness ecosystem, Bain Capital acquisition