News, Vision & Voice for the Advisory Community


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

Related Moves

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

Orion names 'left-brained' Natalie Wolfsen as CEO to replace Eric Clarke, and AssetMark, which synchronized its announcement, hires Michael Kim as her replacement

Orion Chairman Charles Goldman again lures his protege to self-replace, while Michael Kim was 'integral to AssetMark’s record financial performance over the past several years'

September 8, 2023 at 11:58 PM

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

November 18, 2022 at 2:56 AM

See more related moves

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

RIABiz Directory

The Industry Sourcebook for RIAs

   |    LISTING

RIABiz Directory sponsored by:

Directory Sponsor Logo