Envestnet unveiled its five-year strategic plan during a presentation at this week’s Future Proof Festival in Huntington Beach, California, pledging to invest $1 billion in an effort to “transform the advisor experience” on its wealth management technology platform for broker-dealers, RIAs and institutional partners.
“This moment marks a redefinition of who we are — and where we’re going,” said Chris Todd, CEO of Envestnet. “Advisors are telling us they want to consolidate with fewer partners, deepen integrations, and leverage better wealthtech that helps them expand their business, especially to serve the high-net-worth market.”
The capital reinvestment will be supported by Envestnet’s recent acquisition by Bain Capital. The private equity firm purchased Envestnet last year for $4.5 billion following a rocky period for the fintech organization, one in which the firm faced pressure from shareholders and industry observers concerned about the pace of its aggressive acquisition strategy and its ability to fully integrate acquired entities and capabilities.
The roadmap will help Envestnet provide a “fully connected solution” that equips advisors with “advanced, integrated and configurable tools” across trading, reporting, financial planning, portfolio management, client engagement and more, Todd said.
Particular attention will be paid to enhancing the platform’s unified managed account infrastructure, flexible household modeling capabilities, the integration of multiple investment types and expanded planning tools to help advisors deepen and expand client relationships. These plans include its Tamarac platform for RIAs and MoneyGuide tool for financial planning and reporting.
Alternative investments also play a significant role in Envestnet’s five-year plan and are another opportunity for the company to strengthen its relationship with advisors who serve high-net-wealth investors, according to the announcement.
The early phases of the plan will be focused on UMA advisor-traded sleeves, flexible householding, alternatives access and portfolio management. Other early focus areas include comprehensive manager research and consulting, new multi-custodial options, significant improvements to the client portal and new interactive dashboards.
Further, Envestnet will continue its artificial intelligence-focused investments meant to boost advisor productivity through decision intelligence, which seeks to combines AI, data science, behavioral context, and predictive analytics to support tools like Insights AI, which empowers users to surface the most relevant next best action insights.
On the alternatives front, Envestnet will be launching new interval fund capabilities and deepening integration with leading alternatives platforms. By the end of 2025, the firm says, advisors will be able to “seamlessly allocate” to interval funds through Envestnet’s UMA platform.
Credit: Envestnet
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