In what the firm says will add new technology to power its financial advisor solutions, Franklin Resources announced May 6 that it has acquired AdvisorEngine Inc.
Founded in 2014, the digital wealth platform provides technology and consulting services to more than 1,200 financial advisory firms in the U.S. that manage over $600 billion in assets. The deal, according to the announcement, will benefit both companies and the firms they serve across wealth management channels, including registered investment advisors (RIAs), broker dealers, banks and insurance companies.
AdvisorEngine will work with Franklin Templeton to co-create new proprietary solutions, including goals-based financial planning tools, digital portfolio construction analytics and research-enabled practice management services. AdvisorEngine will also continue to build out its financial experience platform, which the firm says brings together advisor experience (AX), business operations experience (BX) and client experience (CX).
In February, Franklin Resources announced that it had entered into an agreement to acquire Legg Mason, Inc. in a $4.5 billion deal. In that announcement, the firm noted that combined footprint will deepen Franklin Templeton’s presence in key geographies, create an expansive investment platform balanced between institutional and retail clients, and create a separately managed account business.
“We’re in the midst of the fourth industrial revolution and technological advances are reshaping how financial solutions are delivered,” Jenny Johnson, president and CEO of Franklin Templeton, said in a statement. “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."
Adds Craig Ramsey, AdvisorEngine Chief Operating Officer: “Our next phase of product development has the potential to change the paradigm of what a wealth management platform can be. We are bringing down the walls between CRM, portfolio management and productivity software. As this happens, advisors will deliver on the promise of ‘personalization-at-scale’ in a way that has not been possible previously.”
AdvisorEngine’s leadership team will continue to operate the business as an independent subsidiary of Franklin Templeton. Raymond James & Associates served as the exclusive financial advisor to AdvisorEngine on the transaction. Additional terms of the transaction were not disclosed.
