Envestnet Inc., a provider of wealth management technologies, has announced an agreement to buy FundQuest Inc., which specializes in turnkey asset management solutions, for $24.4 million in cash.
FundQuest, based in Boston, has about $15 billion in assets under management and is owned by BNP Paribas Investment Partners. The fund is a provider of "managed account programs, overlay portfolio management, mutual funds, institutional asset management, and investment consulting to RIAs, independent advisors, broker-dealers, banks, and trust organizations," according to Envestnet.
In 2010, Chicago-based Envestnet and FundQuest entered into an agreement in 2010 under which Envestnet agreed to provide its wealth management platform to FundQuest Inc. clients. This acquisition will enable the combined firm to build upon this platform and offer more efficient and integrated wealth management solutions, according to Envestnet.
The deal is expected to be completed in the fourth quarter, according to Envestnet.
"Joining Envestnet will enable us to streamline the service model to our client base and enhance our investment management product offering by combining Envestnet's impressive universe of products and managers with FundQuest's innovative due diligence and customization capabilities," said Lincoln Ross, president and CEO of FundQuest.