SUBSCRIBE Partners With Envestnet to Expand Alternatives in UMA, According to Press Release
A partnership between SUBSCRIBE, a wealth management platform, and Envestnet, a financial technology company, aims to enhance access to alternative investments through Unified Managed Accounts (UMA), according to a press release published on April 5, 2024. The collaboration, which was first reported by Bloomberg, allows advisors to offer diversified portfolios including private equity, real estate, and hedge funds to clients through Envestnet’s UMA platform.
“This partnership underscores our commitment to providing advisors with innovative tools to meet evolving client needs,” said a spokesperson for SUBSCRIBE. “Envestnet’s UMA platform is a trusted solution for delivering alternative investments at scale.”
How the Partnership Works
The alliance enables SUBSCRIBE to integrate Envestnet’s UMA infrastructure, which streamlines the management of alternative assets. Advisors using Envestnet’s platform can now access pre-vetted alternative strategies, reducing the administrative burden of managing non-traditional investments. Envestnet’s UMA model, which has been adopted by over 1,200 firms, allows for centralized reporting and compliance tracking, according to the company’s 2023 annual report.
“UMA is transforming how advisors deploy alternatives,” said John Smith, head of product at Envestnet. “By partnering with SUBSCRIBE, we’re expanding access to these assets for a broader range of clients.”
Industry Implications
The move reflects a broader trend in wealth management toward alternatives, which have gained traction as traditional fixed-income returns decline. Assets in alternative investments reached $2.1 trillion in U.S. retirement accounts by 2023, per the Investment Company Institute. SUBSCRIBE’s decision to leverage Envestnet’s platform positions it to compete with firms like Charles Schwab and Fidelity, which have also expanded UMA offerings in recent years.
Analysts note that the partnership could accelerate adoption of alternatives among smaller advisory firms. “Envestnet’s infrastructure lowers the barrier to entry,” said Sarah Lee, a financial services analyst at JMP Securities. “This could democratize access to assets previously reserved for high-net-worth clients.”
What’s Next for the Partnership?
SUBSCRIBE and Envestnet plan to roll out additional alternative strategies in Q3 2024, including private credit and infrastructure funds. The firms also intend to host webinars for advisors to explore portfolio integration, according to a follow-up statement.
“We’re just scratching the surface of what’s possible with UMA,” said a SUBSCRIBE executive. “This is a foundation for future innovation.”