Crager to Continue with Envestnet as a Senior
Advisor effective March 31,
2024
Board of Directors to Initiate a Search for a
Successor
Board Chair James L.
Fox to serve as interim CEO effective April 1, 2024
Company Reaffirms Fourth Quarter and Full Year
Guidance
BERWYN,
Pa., Jan. 8, 2024 /PRNewswire/ -- Envestnet,
Inc. (NYSE: ENV) ("Envestnet" or "the Company"), today announced
that Bill Crager has made the
decision to transition from the role of CEO effective March 31, 2024. Beginning April 2024, Crager will continue with Envestnet
as a Senior Advisor, focusing on client and partner relationships,
leaning in on key strategic initiatives, and continuing to be a
visionary voice for the financial services industry.
"For more than 24 years, it has been my privilege
and honor to work with Envestnet, creating an industry leader. We
now serve more assets, more financial advisors, and more accounts
than anyone in the marketplace. Together, we have built a more
integrated, cohesive organization with a connected operating
platform that provides a gateway to the future for the industry,"
said Crager. "Starting in April, I will have the time and
opportunity to focus on what I have always loved doing – growing
Envestnet's relationships and empowering our clients to provide
holistic financial advice and solutions. This transition gives me a
front-row seat for our next chapter and I look forward to
continuing our journey."
Envestnet's focus on client excellence and
service is unwavering. Tom Sipp,
Executive Vice President, will continue to lead Envestnet's
business lines partnering closely with Crager and Board Chair
James L. Fox, who will serve as
interim CEO as of April 1, 2024,
until a successor is in place. The Board of Directors will initiate
a search for a successor, considering internal and external
candidates, with assistance from an independent executive search
firm.
Under Crager's leadership, Envestnet has grown
into a leading managed solutions service provider with $5.4 trillion in client assets and over 107,000
advisors served*. Crager was recognized on Investment News'
2023 Hot List and in 2015, the Money Management Institute named him
that year's Industry Pioneer. He was voted one of the IA25 by
readers of Think Advisor and Investment Advisor
magazines in 2020. Crager and the late Jud
Bergman were among the first in the managed solutions
industry to streamline independent advisors' practices by offering
a broad range of fee-based products side-by-side within an easily
accessible, open-architecture portal.
"Bill has been a driving force of Envestnet since
he co-founded the company with Jud
Bergman in 1999. They established the vision for our company
and Bill has led the charge in the ongoing expansion of the firm's
innovative financial wellness network. He is an inspirational
leader who set the bar for our quality client solutions and
services. Bill also built a strong and experienced management team
and we're confident in their ability to continue to execute our
strategy," said Fox. "On behalf of the Board and the entire
company, we want to thank Bill for all he has done for Envestnet as
CEO and his continuing partnership."
The Company reaffirmed its fourth quarter and
full year 2023 guidance announced on November 8, 2023. As stated in the Company's Q3
2023 earnings materials, Envestnet expects its fourth quarter 2023
revenue to be between $309 -
$314 million and adjusted EBITDA
between $64.5 - $68.5 million. For the full year 2023, Envestnet
expects revenue to be between $1,237-$1,242
million and adjusted EBITDA to be between $245-$249
million.
*as of Q3 2023
ABOUT ENVESTNET
Envestnet is
transforming the way financial advice is delivered through an
ecosystem of technology, solutions, and intelligence. By
establishing the connections between people's daily financial
decisions and long-term financial goals, Envestnet empowers them to
make better sense of their finances and live an Intelligent
Financial Life™. With more than $5.4
trillion in platform assets—more than 107,000 advisors, 16
of the 20 largest U.S. banks, 48 of the 50 largest wealth
management and brokerage firms, more than 500 of the largest RIAs,
and thousands of companies, depend on Envestnet technology and
services to help drive better outcomes for their businesses and for
their clients.
Envestnet refers to the family of operating
subsidiaries of the public holding company, Envestnet, Inc. (NYSE:
ENV). For more information, please visit www.envestnet.com,
and follow us on LinkedIn and X (@ENVintel).
Cautionary Statement Regarding Forward-Looking
Statements
The forward-looking statements made in this press
release and its attachments concerning, among other things,
Envestnet, Inc.'s expected financial performance and outlook for
the fourth quarter and full year of 2023, are made pursuant to the
safe harbor provisions of the Private Securities Litigation Reform
Act of 1995. These statements involve risks and uncertainties and
our actual results could differ materially from the results
expressed or implied by such forward-looking statements.
Furthermore, reported results should not be considered as an
indication of future performance. The potential risks,
uncertainties and other factors that could cause actual results to
differ from those expressed by the forward-looking statements in
this press release include, but are not limited to, the
concentration of our revenue from the delivery of our solutions and
services to clients in the financial services industry; our
reliance on a limited number of clients for a material portion of
our revenue; the renegotiation of fees by our clients; changes in
the estimates of fair value of reporting units or of long-lived
assets; the amount of our debt and our ability to service our debt;
limitations on our ability to access information from third parties
or charges for accessing such information; the targeting of some of
our sales efforts at large financial institutions and large
financial technology ("FinTech") companies which prolongs sales
cycles, requires substantial upfront sales costs and results in
less predictability in completing some of our sales; changes in
investing patterns on the assets on which we derive revenue and the
freedom of investors to redeem or withdraw investments generally at
any time; the impact of fluctuations in market conditions and
interest rates on the demand for our products and services and the
value of assets under management or administration; our ability to
keep up with rapid technological change, evolving industry
standards or changing requirements of clients; risks associated
with our international operations; the competitiveness of our
solutions and services as compared to those of others; liabilities
associated with potential, perceived or actual breaches of
fiduciary duties and/or conflicts of interest; harm to our
reputation; our ability to successfully identify potential
acquisition candidates, complete acquisitions and successfully
integrate acquired companies; our ability to successfully execute
the conversion of clients' assets from their technology platform to
our technology platforms in a timely and accurate manner; the
failure to protect our intellectual property rights; our ability to
introduce new solutions and services and enhancements; our ability
to maintain the security and integrity of our systems and
facilities and to maintain the privacy of personal information and
potential liabilities for data security breaches; the effect of
privacy laws and regulations, industry standards and contractual
obligations and changes to these laws, regulations, standards and
obligations on how we operate our business and the negative effects
of failure to comply with these requirements; regulatory compliance
failures; failure by our customers to obtain proper permissions or
waivers for our use of disclosure of information; adverse judicial
or regulatory proceedings against us; failure of our solutions,
services or systems, or those of third parties on which we rely, to
work properly; potential liability for use of inaccurate
information by third parties provided by us; the occurrence of a
deemed "change of control"; the uncertainty of the application and
interpretation of certain tax laws; issuances of additional shares
of common stock or issuances of shares of preferred stock or
convertible securities on our existing stockholders; changes in the
level of inflation; general economic, political and regulatory
conditions; changes in trade, monetary and fiscal policies and
laws; global events, natural disasters, environmental disasters,
terrorist attacks and pandemics or health crises, including their
impact on the economy and trading markets; social, environmental
and sustainability concerns that may arise, including from our
business activities; and management's response to these factors.
More information regarding these and other risks, uncertainties and
factors is contained in our filings with the SEC which are
available on the SEC's website at www.sec.gov or our
Investor Relations website at http://investor.envestnet.com/.
You are cautioned not to unduly rely on these forward-looking
statements, which speak only as of the date of this press release.
All information in this press release and its attachments is as of
January 8, 2024 and, unless required
by law, we undertake no obligation to publicly revise any
forward-looking statement to reflect circumstances or events after
the date of this press release or to report the occurrence of
unanticipated events.
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SOURCE Envestnet