Jul 28, 2019
When Pete D’Arrigo is asked to identify the business growth
milestones that punctuate his 13-year CFO tenure at Envestnet, he
pays passing homage to the company’s 2010 IPO–before drawing our
attention to a convertible debt offering made in late 2014: “This
was an offering that put us in a different swim lane. It was the
first time that we issued debt, and it was a well-received,
oversubscribed offering that then allowed us to lay the groundwork
for 2015 and beyond to build out the capabilities to drive
revenue.”
Whereas the IPO appears to have whetted the company’s M&A
appetite
(Envestnet acquired seven companies within the next four years),
the debt offering was designed to help with the heavy lifting that
often follows a hardy M&A diet.
To achieve greater visibility across Envestnet’s expanded operations, Envestnet’s finance team became focused on building out the infrastructure and systems required to integrate the acquired companies, explains D’Arrigo, who believes that it’s the operational aspects of Envestnet’s finance function that today set it apart. “It’s core to our business today, and that’s with or without an acquisition,” adds D’Arrigo, who notes that these same operational approaches are now empowering Envestnet to better serve its largest customers and partners. –Jack Sweeney