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Envestnet Makes Strategic Investment in YieldX

Envestnet Makes Strategic Investment in YieldX

Investment solutions provider Envestnet announced it has made a strategic investment in fixed income investing platform YieldX this week. Illinois-based Envestnet was the lead investor in YieldX’s most recent, Series A funding round.

The round, which totaled $18 million, brings YieldX’s total funding to $36 million. YieldX will use the money to scale its quant, engineering, and analytics teams and to expand its API suite. Specifically, YieldX aims to further personalize its offerings, add new data and integrations, expand existing ESG customization, and execute its go-to-market strategy.

Through the newly formed partnership, Envestnet will distribute YieldX’s products to its nearly 108,000 advisors and 6,000+ enterprise customers. The tie-up will help Envestnet clients offer their end consumers better fixed-income investment outcomes.

“We are fully vested in enhancing our ecosystem to intelligently connect financial lives, and we believe income and protection solutions are critical to helping make financial wellness a reality,” said Envestnet Chief Strategy Officer Rich Aneser. “Through our strategic partnership with YieldX, and investing to expand its capabilities, we are able to bring more income related solutions to market for helping advisors meet a critical client need.”

Founded in 2019, YieldX offers tools for fintechs, wealth managers, broker dealers, and asset managers. Company Cofounder and CEO Adam Green called the partnership a “powerful way to level the fixed income playing field for Envestnet’s broad network of advisors and end investors with solutions that simplify the traditional complexities of sourcing and trading fixed income assets.”

Envestnet was founded in 1999 and has since made 13 acquisitions, including its most notorious buy, Yodlee, in 2015. The company’s purchase of data aggregation firm Yodlee broadened its offerings from advisor technology and launched it into the world of open finance. Envestnet is a publicly-traded company on the New York Stock Exchange under the ticker ENV and has a market capitalization of $4.66 billion.


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