Envestnet says no forced Vestmark migrations after deal closes

Envestnet says Vestmark clients will face no forced migrations when its acquisition of the portfolio management and trading technology provider closes, which the company expects in the fourth quarter. Chief marketing officer Sue Burton made the commitment to InvestmentNews at Schwab IMPACT in Boston.

Vestmark's March 30 Form ADV filed with the SEC reports $49.9 billion in regulatory assets across 84,069 accounts. The deal was announced Sept. 9. Terms were not disclosed.

For RIAs on Vestmark's platform, the stated commitment is continuity: no forced migrations and existing products continuing. "Products will continue," Burton said. Freedom Dumlao, Vestmark's chief technology officer and chief AI officer, said the two companies agreed clients must keep the same service they have received as Vestmark clients. Envestnet and Vestmark have not set a timeline for later integration, leaving contract and roadmap terms as the open diligence question for firms on either platform.

Burton said the purchase lets Envestnet offer every trading model, spanning admin traded, sponsor traded and advisor traded. Vestmark, she said, specializes in highly scaled sponsor trading for large RIAs, bank trusts and wirehouses, while Envestnet supports scaled broker-dealers and mid-market RIAs.

Dumlao also named integration ideas. He said the companies are eager to start working out how to bring Envestnet's Redi2 and MoneyGuidePro technology to Vestmark clients, and how to bring Vestmark's VAST product to the Tamarac platform.

Envestnet also announced custom model solutions with 10 asset managers earlier this week, including T. Rowe Price, BlackRock and Fidelity Investments. As Private Wealth Daily previously reported, Allspring and Vestmark are also building tax-aware models.