Close Close

Portfolio > Portfolio Construction

Back Office Deal

Your article was successfully shared with the contacts you provided.

Registered investment advisors will have the option to outsource more of their back-office tasks, including “portfolio data management and performance reporting,” after the back-office service provider Etelligent Consulting, Inc. is acquired by the unit of Charles Schwab Corp. that provides portfolio management and accounting systems for RIAs. Schwab Performance Technologies has agreed to buy Etelligent Consulting, based in Overland Park, Kansas, for an undisclosed amount, with the deal expected to close “in the first quarter of 2008,” according to a December 13 announcement.

Calling the deal a “strategic acquisition,” and recognizing that the RIA segment of the market is growing rapidly, Charles Goldman, head of Schwab Institutional, added in the announcement: “Removing back-office challenges is especially critical as more advisors leave established firms and strike out on their own.”

Currently, over 100 RIA firms outsource back-office tasks to Etelligent Consulting, but that number will undoubtedly grow, since more than 3,000 RIA firms use Schwab Performance Technologies’ PortfolioCenter software for portfolio data management, and Schwab Institutional custodies $581 billion in assets, as of September 30, for about 5,500 RIA firms.


© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.