Envestnet has been highlighted as Renaissance Capital's Featured IPO.
A provider of outsourced web-based investment solutions for financial advisors, Envestnet is one of five deals on the IPO calendar set to debut this week. The company offers back-office and reporting services, financial planning tools, proposal and presentation tools, account management and a variety of other services and is benefiting from the industry shift toward independent advisors, many of which lack the scale to do these tasks in-house. Its products are used by over 19,000 advisors, including both independent advisors as well as those accessing the platform through the infrastructure of large enterprises like Charles Schwab (SCHW), Ameritrade (AMTD) and Ameriprise (AMP).
Although competition is a significant risk and profitability has been held back by high operating expenses, the company's market traction and exposure to secular trends should interest investors. Morgan Stanley (MS), UBS (UBS) and Barclays (BCS) are the bookrunners on the deal, which is expected to price Wednesday evening and list on the NYSE under the symbol "ENV."
Read our full IPO Commentary.
