Envestnet Inc., a Chicago-based investment technology provider, has filed for an initial public offering of common stock with the Securities and Exchange Commission (SEC) in hopes of reaping a $100 million cash infusion as the financial advisory industry grows alongside demands for greater market transparency.
“The wealth management industry has experienced significant growth in terms of assets invested by retail investors in the past several years,” Envestnet’s S-1 regulatory filing states, pointing to Federal Reserve statistics showing that U.S. household and non-profit organization financial assets totaled $45.1 trillion as of December 31, 2009, up from $41.7 trillion in 2008 and $35.3 trillion in 2003.
At the same time, the issue of fiduciary responsibility is coming to a head on Capitol Hill. The Dodd bill on financial reform, in particular, has driven financial advisors to seek new ways to offer their clients better market transparency. And firms such as Envestnet are capitalizing on this trend.