Envestnet goes private in $4.5 billion deal with Bain Capital

Wealth Technology Platform Investment plans to become a private company under an agreement with Bain Capital.

The company has entered into a definitive agreement to be acquired by Bain Capital in a transaction that values ​​Envestnet at $4.5 billion, the companies said on Thursday (July 11). press release.

This the agreement was unanimously approved by Envestnet Management, according to a statement. Subject to customary closing conditions, the transaction is expected close in the fourth quarter and Envestnet will become a private company.

“The Board and its advisors conducted a process designed to maximize shareholder value” Jim Foxchairman of the board and interim CEO of Envestnet, said in a release. “I am proud of what Envestnet has achieved over the years to become the leading wealth management platform in the industry.”

Working with Bain Capital, Respect for capital According to the announcement, he is participating in the transaction.

Strategic partners who have committed to invest in the proposed transaction, and will hold a minority stake in the privately held company upon completion of the transaction complete, switch on Black Rock, Fidelity Investments, Franklin Templeton AND State Street Global Advisors– we read in the announcement.

According to the release, Envestnet has over $6 trillion in assets under management, oversees nearly 20 million accounts and provides its platform to over 109,000 financial advisors.

“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 support their businesses.” Phil Loughlinpartner at Bain Capital, said in a statement.

Marvin Larbi-Yeboapartner 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 their differentiated product offering and delivering greater value to customers and partners.”

It has been reported On Monday (July 8), Bain Capital came close acquisition Envestnet. Envestnet was considering a sale in 2022 and was said to be up for sale again in April.

Last year, the company faced a challenge from an activist investor who urged it to cut costs, and when then-CEO Bill Crager He said in January that he would resign from the position in April.

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