The effort is intended to yield a more customized, connected, and intelligent Envestnet platform.
Private equity giant Bain Capital is acquiring Envestnet, Inc., a provider of integrated technology, intelligent data, and wealth solutions, via a transaction valuing Envestnet at $4.5 billion ($63.15 per share), officials say.
The transaction will take Envestnet private.
The Envestnet platform is used by wealth management firms, registered investment advisors (RIAs), and broker-dealers. The buyout is intended to help the firm deliver more holistic financial advice, officials say.
“Reverence Capital also agreed to participate in the transaction,” officials say. “Strategic partners BlackRock, Fidelity Investments, Franklin Templeton, and State Street Global Advisors have committed to invest in the proposed transaction, and upon its completion, they will hold minority positions in the private company.”
“Envestnet manages over $6 trillion in assets, oversees nearly 20 million accounts, and enables more than 109,000 financial advisors,” officials say. The company also supports more than 800 asset managers via its wealth management platform.
“Together with Bain Capital, we are committed to investing in our platform making it more customized, connected, and intelligent,” says Tom Sipp, executive vice president, business lines at Envestnet, in a prepared statement.
“As a private company, we can accelerate our ability to further elevate our market-leading platform with greater functionality and an even broader solution set that enables advisors to better serve clients at all stages of their financial life,” Sipp says.
Under the terms of the agreement, Envestnet shareholders will receive $63.15 in cash for each share of common stock they own, officials say. The transaction is likely to close in the fourth quarter of 2024.
“Upon completion of the transaction, Envestnet’s common stock will no longer be publicly listed, and Envestnet will become a privately held company,” officials say.
Need a Reprint?