AdvisorEngine’s leadership team continue to operate the business as an independent subsidiary of Franklin Templeton
Franklin Resources, a subsidiary of Franklin Templeton, has acquired AdvisorEngine, a New York-based digital wealth platform and consulting services provider, for an undisclosed amount.
The deal is expected to be beneficial for both Franklin Templeton and AdvisorEngine along with the firms they serve across wealth management channels, including registered investment advisors (RIAs), broker dealers, banks and insurance companies.
Founded in 2014, AdvisorEngine offers its consulting services to more than 1,200 US financial advisory firms that have more than $600bn in assets under management.
Franklin Templeton said that AdvisorEngine will work with it to co-create new solutions, including goals-based financial planning tools, digital portfolio construction analytics and research-enabled practice management services to help financial advisors to strengthen their wealth management services.
Franklin Templeton president and CEO Jenny Johnson said: “We’re in the midst of the fourth industrial revolution, and technological advances are reshaping how financial solutions are delivered.
“As a result, we continue to invest in technology and teams to enhance our offerings and enable us to innovate at the nexus of asset management, wealth management and technology.”
AdvisorEngine will continue to build upon its open-architecture platform strategy
AdvisorEngine will also continue to develop its platform, which combines advisor experience, business operations experience and client experience at one place.
The platform supports client relationship management (CRM), portfolio management, reporting, marketing and digital wealth solutions for financial advisory firms.
AdvisorEngine will continue to build its open-architecture platform strategy by forming new relationships with custodians, financial technology providers and asset managers.
The company’s leadership team will continue to operate the business as an independent subsidiary of Franklin Templeton.
AdvisorEngine founder and CEO Rich Cancro said: “Selecting a partner was about finding an organization that is aligned to our vision and culture and positioned to contribute expertise that will make our platform even smarter. Upon meeting Jenny Johnson and the leadership team, it became clear that Franklin Templeton is the right fit.
“We’re now better positioned than ever to help advisors transform how they do business, connect more deeply with clients, grow assets and scale their operations.”
In February, Franklin Templeton had agreed to acquire Legg Mason, an investment management firm for $4.5bn.
The deal is expected to consolidate Franklin Templeton among the largest specialised global investment managers in the world with combined assets under management (AUM) of $1.5 trillion.