AdvisorEngine said Tuesday that it has bought CRM Software, the cloud-based CRM platform that does business as Junxure. As part of the deal, WisdomTree Investments will lend up to $30 million to AdvisorEngine.
AdvisorEngine, which runs a client-facing portal for about 60 financial services firms, bought the practice management firm Kredible to support advisors’ client acquisition efforts about nine months ago. Since November 2016, WisdomTree — the maker of exchange-traded products — has committed a total of $55 million to fund AdvisorEngine’s growth, research and technology.
“The next frontier of innovation within financial services is happening at the intersection of personal relationships, data science and automation — which makes native CRM functionality especially powerful,” said AdvisorEngine CEO Rich Cancro, in a statement. “I am thrilled to bring the companies together while maintaining Junxure’s culture of innovation and independence.”
For its part, WisdomTree views research-backed, technology-enabled solutions as “a cornerstone of [its] growth strategy, and we are thrilled to deepen our relationship with AdvisorEngine,” according to a statement from WisdomTree CEO and President Jonathan Steinberg.
Junxure has about 1,400 firms as customers and about 12,000 users, says President Greg Friedman. AdvisorEngine and Junxure “have a shared vision and passion for taking care of advisors and helping them grow,” Friedman explained in an interview.
While Junxure works main with registered investment advisors, the firm “absolutely” plans to expand into other areas of the financial-services marketplace, the executive says.
As for AdvisorEngine, “In 2018, we look at our ability to create a great client experience,” which can include automated investing, Cancro said in an interview. “Our portal creates great collaboration across wealth levels and generations.”
As advisors come under pressure to compete on price and margin pressure becomes more intense than ever, “Advisors have to service more assets and accounts and do so as efficiently as possible — so we are automating and digitizing everything,” he explained.
The firm is “fully committed” to open-architecture technology, according to Cancro.
“We know that every advisory firm is different, so we believe in delivering powerful workflows that are CRM-agnostic,” he added, in a statement. “Regardless of their contact management system of choice, all AdvisorEngine users will benefit from the Junxure acquisition.”
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