BlackRock buys Envestnet's love for $123 million to crack its 'open-architecture' platform and sets stage for another juicy Envestnet acquisition

The $6-trillion New York mega-manager buys 5% stake in the $2-trillion Chicago clearinghouse to get most-favored-vendor status in 'open architecture' environment

Authors Brooke Southall and Oisin Breen November 29, 2018 at 1:20 AM

2 Comments

Bill Crager [to InvestmentNews]: Will BlackRock investment products benefit? Probably.

Technology

Bill Crager

BlackRock

Envestnet

Yodlee

Craig Iskowitz

November 29, 2018 — 3:43 PM

This is a shrewd investment on BlackRock's part. While their public goal is to increase their revenue from technology, the lion's share is still generated by asset management. They have been working hard to build as many partnerships and distribution deals as they can. Envestnet is the largest TAMP, has the largest manager universe and is also one of the biggest sponsors. Why wouldn't BlackRock want to buy into those channels if they could leverage them? I don't see this deal impacting their work with any other vendor (Orion, Vestmark, etc.) since everyone is now a potential distribution channel for their products. Coopetition is the past, present and future in financial services and this is just another small step towards an ever more complex environment.

Francis

November 29, 2018 — 8:16 PM

Very astute indeed

Related Moves

Bill Crager shuffles the deck on management team created just seven months ago: Tony Leal is out of 'Big Three' inner circle, replaced by Morgan Stanley vet Rose Palazzo

The RIA software 'trailblazer' and co-founder of MoneyGuidePro has been working on departure for a year; will transition to a 'consultant,' company says

January 7, 2023 at 1:50 AM

Envestnet just named an ESG head to meld 'wellness,' 'The Intelligent Financial Life' and 'sustainable investing' into a single nirvana -- that starts outside of the product realm

Ron Ransom earned CEO Bill Crager's trust as chief business development officer and now will define how Envestnet conducts itself as a global citizen and vendor of wellness.

July 27, 2022 at 2:27 AM

Envestnet nabs Dani Fava to cross-pollinate semi-autonomous units and reap 'financial wellness' as the end product

The Chicago outsourcer has a massive, partially disconnected arsenal of products that CEO Bill Crager is rationalizing into 'wellness' with yet another new unit.

July 23, 2020 at 1:42 AM

Behind the scenes, Envestnet's board of directors had much to tussle over before finally subtracting the 'interim' from Bill Crager's CEO title

With Jud Bergman gone at a chairman, a power struggle ensued to fill that spot, and the process dragged when taking the company private came under review

April 2, 2020 at 2:34 AM

See more related moves

Mentioned in this article:

Envestnet Inc
TAMP
Top Executive: Jud Bergman