Envestnet to be Acquired by Bain Capital in $4.5 Billion Deal

Wealthtech platform titan Envestnet has made headlines with its recent agreement to be acquired by private equity firm Bain Capital in a massive $4.5 billion cash deal. The acquisition, announced on July 11, has garnered attention from industry heavyweights like BlackRock, Fidelity Investments, Franklin Templeton, and State Street Global Advisors, who are all backing the transaction alongside Reverence Capital.

This deal comes on the heels of another agreement struck in June, where the same four firms secured exclusive access to Envestnet’s unified managed account (UMA) tools for their advisors. The partnership aims to enhance the wealthtech’s product offering and deliver added value to customers and partners.

“We look forward to working with Envestnet’s talented and experienced leadership team and supporting their growth strategy through organic and inorganic initiatives,” said Marvin Larbi-Yeboa, a partner at Bain Capital. The move to take Envestnet private marks a significant development in the wealth management industry, as the company serves 48 of the 50 largest wealth management and brokerage firms, with approximately 109,000 advisors and over $6 trillion in platform assets.

Envestnet’s interim CEO and board chair, Jim Fox, expressed pride in the company’s achievements over the years, highlighting its position as a leading wealth management platform. However, analysts at Citizens JMP Securities noted the complexity of Envestnet as a potential challenge for buyers, leading to a limited pool of interested parties.

Following the announcement, Envestnet’s shares experienced a slight dip, closing at $61.65 per share. The transaction is expected to close in the fourth quarter of 2024, pending shareholder and regulatory approvals. This acquisition represents a significant milestone for Envestnet and the wealth management industry as a whole, signaling a new chapter in the company’s growth and development.