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

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Mentioned in this article:

Envestnet Inc
TAMP
Top Executive: Jud Bergman