Envestnet and Chip Roame forge stronger tie

Envestnet Inc. has named Charles “Chip” Roame as the seventh member of its board of directors.

The large Chicago-based outsourcer of technology and investments made the managing partner of Tiburon Strategic Advisors its first board appointment since Envestnet’s initial public offering last year. The appointment is effective as of Aug. 3.

This marks the first time Roame has agreed to serve as a director on the board of a public company. His firm consults with senior executives and boards of directors in the brokerage, investments, banking and insurance markets.

“Time is limited for us all and one has to invest such time with entities that can transform the industry,” Roame says. “Envestnet has the opportunity to dominate wealth management technology.” See: Envestnet unbundles portfolio management software for RIAs and it won’t be a sideshow.

Phrase maker

Jud Bergman, CEO, chairman and founder of Envestnet knows Roame well, having used his consulting services over the years. He says that Roame has much to offer.

“[Roame] has keen insights on channels, platforms and products. He sees how the world is changing to the benefit of independent advisors.”

Ron Cordes, co-chairman of Genworth Financial Wealth Management, a major Envestnet competitor among turnkey asset management programs, says that the firm chose well in picking Roame. See: SEI turns a big corner but Genworth is still the big asset gatherer.

“I think Chip is a natural addition to their board. He’s a smart guy, and brings a combination of business strategy expertise and a deep knowledge of the TAMP space. In fact, I think he actually coined the term TAMP a decade ago in one of his early research reports.”

Bergman adds that the consulting relationship between Roame’s company and Envestnet is small enough that it doesn’t raise any conflicts. Nor will it prevent Roame from continuing to consult to other TAMPs. “It’s de minimus in each of our cases,” he says.

Jud Bergman: He sees how the
world is changing to the benefit
of independent advisors.

The appointment continues Envestnet’s trend of casting a wide net for industry talent. Since its IPO, Envestnet has also hired Marion Asnes from Financial Planning magazine and See: Ron Fiske from Fidelity, for example.

New chapter

Roame’s acceptance of the position marks the beginning of a new chapter in his career.

Moving away from his usual day-today activities, Roame says he will likely focus on “leading CEO Summits, more closely driving our research agenda, delivering one-day market seminars, giving conference speeches, and sitting on a select few boards. See: 10 things I learned at yesterday’s Tiburon CEO Summit.

“I’d assume that you will see me join two-to-three more boards, maybe a mutual fund board, and maybe one-to-two more public company boards,” he says. “My criteria will remain: businesses that can transform, businesses led by people I admire and businesses where my views are congruent with their ethics and business models.”

Frequent flyer

Being on Envestnet’s board will require Roame to travel to Chicago six times a year but he is philosophical about all those jet flights and hotel rooms.

“I like Jud. I like Bill [Crager, president of Envestnet]. I have spoken many times previously at Envestnet board meetings and I like the board members personally. Six trips to Chicago – or wherever the board will meet – is cumbersome, no doubt, and one better be having fun while adding value. I enjoy the intellectual discussion with these folks.”

Prior to forming Tiburon in 1998, Roame served in similar capacities, first as a management consultant at McKinsey & Company, and later as a business strategist at The Charles Schwab Corporation.

Before bringing Roame aboard, Envestnet’s six directors were all from outside the company, except for Bergman.