Bain close to agreement to acquire Envestnet

Bain Capital is reportedly close to acquiring a financial software provider Investment.

If an agreement is reached, it could be announced this week, Reuters reports. reported Monday (July 8), citing anonymous sources.

Both Bain Capital and Envestnet contacted by PYMNTS declined to comment on the report.

According to the report, Envestnet software is used by more than 108,000 financial advisors, 16 of the 20 largest banks in the United States, as well as many wealth management firms and brokerage firms.

The company faced a challenge to its board from an activist investor who pressured it to cut costs, and in response it hired three new directors last year, the report said.

The company is also in the midst of a leadership transition as its CEO is Bill Crager He reportedly said in January that he would resign from that role and take up a position as a senior adviser from April.

During the announcement transformation In January, Crager said in a press release that in his new role, he would focus on developing relationships within the company and supporting its clients.

“We now serve more assets, more financial advisors and more accounts than anyone else in the market,” Crager said in a release. “Together, we’ve built a more integrated, cohesive organization with a connected operating platform that provides the industry with a gateway to the future.”

James L. Foxwho has served on the Envestnet board since 2015 and has served as chairman of the board since 2020, took on the additional position of interim CEO on April 1.

According to a Reuters report on Monday, Envestnet was considering a sale in 2022 and was reported to be up for sale again in April.

The company has announced new products and partnerships over the past few weeks. These include an expanded partnership with Fidelity Investments provide unified wealth and advice platform; deepening relationships with Black RockFidelity Investments, Franklin Templeton AND State Street Global Advisors build investment strategies for use by advisors and a new partnership with Sales Force to provide a more unified platform experience property advisors.

The report of a potential takeover of the company by Bain Capital comes at a time when mergers and acquisitions They are said to be doing well after the drought.