Wealth technology platform Envestnet plans to go private in a deal with Bain Capital.
The company entered into a definitive agreement to be acquired by Bain Capital in a transaction that values Envestnet at $4.5 billion, the companies said in a Thursday (July 11) press release.
The agreement was unanimously approved by the Envestnet board of directors, according to the release. Subject to customary closing conditions, the transaction is expected to close in the fourth quarter, with Envestnet becoming a privately held company.
“The board and its advisors conducted a process to maximize value for shareholders,” Jim Fox, board chair and interim CEO of Envestnet, said in the release. “I’m proud of what Envestnet has achieved over the years in becoming the leading wealth management platform in the industry.”
Together with Bain Capital, Reverence Capital is participating in the transaction, according to the release.
Strategic partners that have committed to invest in the proposed transaction, and that will hold minority positions in the private company when the transaction is complete, include BlackRock, Fidelity Investments, Franklin Templeton and State Street Global Advisors, the release said.
Envestnet manages over $6 trillion in assets, oversees nearly 20 million accounts and provides its platform to more than 109,000 financial advisors, per the release.
“Through its deeply connected ecosystem and innovative technology and data capabilities, Envestnet has built an industry-leading platform that the largest wealth management firms, [registered investment advisors (RIAs)] and broker-dealers rely on to power their businesses,” Phil Loughlin, a partner at Bain Capital, said in the release.
Marvin Larbi-Yeboa, a partner at Bain Capital, added: “We look forward to working with Envestnet’s talented and experienced leadership team and supporting their growth strategy through organic and inorganic initiatives, making further investments in its differentiated product offering, and delivering enhanced value to customers and partners.”
It was reported Monday (July 8) that Bain Capital was close to acquiring Envestnet. Envestnet explored a sale in 2022 and was said to be up for sale again in April.
The firm faced a board challenge from an activist investor pushing it to cut costs last year, and it began a leadership transition when then-CEO Bill Crager said in January that he would step down from that role in April.
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