Text size BlackRock is taking a 4.9% equity stake in Envestnet, a major provider of technology to financial advisors. The goal of the $122.8 million investment is to put BlackRock’s own technology in front of more advisors, InvestmentNews reports. Envestnet certainly may help on that front, given that it serves 93,000 advisors at 3,500 different firms. The deal will speed up plans to closely integrate Envestnet platforms with BlackRock’s iRetire, a retirement income planning tool; FutureAdvisor, which provides advisors with digital advice; and Advisor Center, which assists with portfolio modeling, risk management and business support, according to InvestmentNews. Although those three offerings are first on the companies’ to-do list, they may also integrate other BlackRock interests, including iCapital, which connects advisors with alternative investments. One question is whether the BlackRock investment creates a conflict with the more than 1,000 other asset management firms that use Envestnet PMC, a turnkey asset management platform. But Bill Crager, Envestnet’s president and co-founder, said the deal won’t hinder access to those other firms. “Will BlackRock investment products benefit? Probably,” Crager was quoted saying. “Will all of our asset manager partners see inflows? We believe so.” --Ross Snel
BlackRock has acquired a 4.9 % stake in the financial advice technology firm Envestnet . The deal , worth $ 500 m , aims to expand the use of BlackRock 's technology by integrating its iRetire , iCapital , FutureAdvisor and Advisor Center platforms with Envestnet 's cloud platform . Envestnet currently serves a total of 93,000 advisors representing 350 individual clients .