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Envestnet buys baby robo-advisor to add 'last mile' to its grown-up platform

Upside will cast its lot with the Chicago outsourcing giant in Sunnyvale, becoming the first robo to get consolidated

Author Brooke Southall March 2, 2015 at 9:08 PM
no description available
Stuart DePina: All that plumbing is there but it's not what the end investor sees. This Upside technology is the last mile






Fiduciary Man

Fiduciary Man

March 3, 2015 — 3:15 PM

$1.5mm in investment and sold for $2mm? That doesn’t appear to be a very successful exit considering the trajectory they appeared to be on. Hopefully there is some kind of earn-out provision.



March 3, 2015 — 4:21 PM

There was no trajectory, that’s why they were sold. The cost to build that type of software compared to the revenue coming in from advisors requires deep, deep pockets that Envestnet has. They were smart. Despite what RIABiz and other RIA media outlets portray, the vast majority of advisors will never adopt or create their own robo solution. Money is a relationship business and robos have just jolted many RIAs to realize they need to not be so far behind in their tech.



March 3, 2015 — 10:02 PM

This will be a great addition to the Envestnet platform IMHO. Tom and Juney built a really nice robo platform. It will be interesting to see (1) If the full suite of UMA options are overlayed on top of Upside at Envestnet or it’s just some simple ETF portfolios, and (2) how Betterment/Fidelity responds to the increased competition. At Hedgeable we have a RIA robo partner platform that is focused on advisors looking for tactical strategies, hedging, and alts – https://www.hedgeable.com/partner

Craig Iskowitz

Craig Iskowitz

May 26, 2015 — 4:32 PM

Another advantage Upside will have as part of Envestnet is access to their manged accounts products and technology. No robo-advisor currently offers UMA’s, SMA’s or other managed solutions. But they will need to soon in order to stay ahead of the innovation curve and have some control over the change occurring in the market.

Stifel Financial just launched a client-directed UMA that could be useful in their fight against robo-advisors: http://wmtoday.com/?p=4593

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January 9, 2024 at 4:09 AM

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The ex-TD Ameritrade talent was hired by CEO Bill Crager in 2020 to harmonize acquisitions -- not least MoneyGuidePro and Yodlee that the company still grapples with

March 20, 2024 at 1:25 AM

Envestnet shares popped -- up 8% today -- after Wall Street filtered out bad news and staked its bet on confidence in a new team

The Berwyn, Pa., firm sugar-coated nothing but ended up with a sweet stock price result as analysts see good outweighing bad.

February 24, 2024 at 3:33 AM

Bill Crager makes critical hire of 'step back from the numbers,' Joshua Warren, replacing 'brother' Pete D'Arrigo at CFO; Warren had a big role at BlackRock -- Envestnet's biggest stakeholder

The Envestnet CEO gets 'very, very impressive' 43 year-old BlackRock exec; the New York asset manager happens to be Envestnet's largest stakeholder.

September 27, 2023 at 2:48 AM

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Mentioned in this article:

Envestnet Inc
Top Executive: Jud Bergman

Technology Tools for Today
Consulting Firm
Top Executive: Joel Bruckenstein

Top Executive: Tom Kimberly

Envestnet | Tamarac
Portfolio Management System, CRM Software, Trading/Rebalancing
Top Executive: Stuart DePina

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