Orion Advisor Solutions has acquired 100 percent of longtime collaborator HiddenLevers, giving the company new weight in the risk analysis and analytics business.
The purchase follows a two-year licensing arrangement between the companies. Terms of the deal were not disclosed.
The acquisition puts Orion further along in what appears to be a plan to compete head-to-head with Envestnet, according to a speculation at RIABiZ.
The deal also enhances Orion’s position against Riskalyze. Orion and Riskalyze cooperate closely in a number of areas, but recently began encroaching on each other’s specializations, according to FinancialPlanning.com.
Orion’s turnkey asset management platforms recently topped $1 trillion in assets under administration (AUA), more than double the $700 billion seen a year earlier.
That level of growth has prompted speculation that its private equity owner TA Associates might be looking to cash out soon. We’ve expressed our doubt about such an exit, noting that TA Associates seems willing to invest in acquisitions it can bolt into the Orion TAMP. The purchase of HiddenLevers fits that profile perfectly.
Atlanta-based HiddenLevers has close to $600 billion in assets on its platform and has attracted the praise of industry leaders such as Carson Group and Focus Financial. HiddenLevers’ 30 employees will join Omaha-based Orion.
Orion said in a press release that it views HiddenLevers as a critical solution that will give its turnkey asset management platform distinct competitive advantages.
“HiddenLevers goes beyond a single-number risk analysis approach and instead, builds applications that consider a broad palette of potential economic events – essential for protecting the fiduciary sensibility of Orion customers. Our acquisition of HiddenLevers adds significant value for investment committees looking to improve allocation models, and also for advisors looking to mitigate panic selling,” said Eric Clarke, Founder and CEO of Orion.
