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Envestnet Completes Acquisition, Appoints Investment Strategist
Wealth management software and services provider Envestnet has completed its acquisition of FundQuest, BNP Paribas’ US provider of fee-based managed services, in a $24.4 million cash deal for all outstanding shares, according to its 8-K filings with the SEC. Along with the completion, FundQuest’s chief investment officer will move to Envestnet and take over the role of chief investment strategist.
FundQuest is a Boston-based RIA with some $15 billion in assets under management. It provides a number of services including managed account programs and overlay portfolio management and mutual funds to RIAs, independent advisors, broker-dealers, banks, and trust organizations. Approximately $6 billion of FundQuest’s assets will be reclassified as assets under management for Envestnet, adding to the approximately $127 billion assets the latter firm manages.
FundQuest and Envestnet entered into a platform services agreement last year, giving FundQuest’s clients access to Envestnet’s wealth management platform. That deal has now been terminated.
In other changes, Timothy Clift, formerly the chief investment officer and chairman of the investment committee at FundQuest, is moving to Envestnet’s Portfolio Management Solutions group. Clift, who has been with FundQuest since 1994, will take the role of chief investment strategist.
FundQuest is part of BNP Paribas Investment Partners, but is distinct from the FundQuest European businesses due to its focus on turnkey asset management provider services. The deal, which was announced in August, will have no effect on FundQuest’s European activities.
"This acquisition builds on our ability to empower advisors to achieve excellence in portfolio and practice management," said Jud Bergman, chairman and chief executive of Envestnet.
"Our customers can now gain from Envestnet's vast selection of investment products and platform solutions, including state-of-the-art proposal generation, investment analytics and aggregated performance reporting capabilities," said Lincoln Ross, president and chief executive of FundQuest.
Envestnet is headquartered in Chicago with offices in Boston, Denver, New York, Silicon Valley and Trivandrum, India.
