Based in Overland Park, Kansas and founded in 2000, Etelligent Consulting, Inc. provides back office outsourcing services to more than 100 independent investment advisory firms.
SPT, a subsidiary of The Charles Schwab Corporation, provides interfaces with more than 40 different broker-dealers and makes its portfolio management software available to advisory firms regardless of where they custody assets. According to a press release, more than 3,000 independent RIA firms use SPT’s flagship product PortfolioCenter. Etelligent uses PortfolioCenter as a key part of its business model, allowing advisors to outsource major administrative responsibilities in their back office like portfolio data management and performance reporting.
The acquisition is expected to close in the first quarter of 2008, subject to customary closing conditions. Financial terms of the transaction were not disclosed.
“This strategic acquisition underscores Schwab’s commitment to providing advisors with the tools and support they need to succeed in an industry that is growing at a rapid rate,“ said Charles Goldman, executive vice president and head of Schwab Institutional, a leading provider of custodial, operational and trading support for independent RIAs. “Removing back office challenges is especially critical as more advisors leave established firms and strike out on their own. By providing opportunities to outsource administrative tasks, we can help new and established advisors focus on their clients and accelerate the growth of their businesses.’
More information is available at www.schwabpt.com.