Envestnet Strikes Deal to Acquire Vestmark

Envestnet has purchased wealthtech provider Vestmark to bolster its trading, tax, and artificial intelligence capabilities. 

Additionally, the acquisition is set to allow advisors across the wealth management sector to gain broader access to portfolio management, alongside technology support and outsourced investment management services. 

Following the acquisition, the combined company will continue to support VestmarkONE and VAST, in addition to Envestnet’s Tamarac and MoneyGuide lineup, Envestnet stated. 

“Wealth management offerings have been siloed for too long, with advisors, traders, and portfolio managers each locked into their own piece of the puzzle,” said Chris Todd, chief executive officer of Envestnet. “Wherever a firm sits today, and wherever they’re headed next, they’ll have a platform that can grow with them.” 

Specific terms of the transaction, which is expected to close in the fourth quarter, were not disclosed. 

The acquisition comes shortly after Envestnet made a $35 billion “surge” investment in Tamarac, in a move to bolster its portfolio management offering. The investment is part of the firm’s $1 billion, five-year research commitment to help reshape and enhance the advisor experience. 

Recently, Vestmark launched the Vanguard Custom Model Portfolios in partnership with Vanguard to provide model portfolios to registered investment advisors, as asset classes and service preferences continue to be growing factors for clients. 

Envestnet went private in 2024 after the firm was acquired by private equity firms Bain Capital and Reverence Capital Partners in an all-cash deal worth $4.5 billion, alongside asset managers BlackRock, Fidelity Investments, State Street, and Franklin Templeton.