Bain Capital $4.5bn acquisition of Envestnet

In a landmark deal, Ropes & Gray-led Bain Capital is set to acquire Envestnet Inc. for $4.5 billion in a take-private deal, it was announced Thursday. The acquisition, led by Paul Weiss, reflects Bain Capital’s strategic expansion into the financial technology sector.

Bain Capital $4.5B Acquisition of Envestnet: Key Acquisition Details

Under the agreement approved by Envestnet’s board, shareholders will receive $63.15 in cash per common share. The transaction is expected to close in the fourth quarter of 2024, pending shareholder and regulatory approvals.

Strategic Investments and Partnerships

Significant industry players, including BlackRock, Fidelity Investments, Franklin Templeton and State Street Global Advisors, have committed to invest in the transaction, securing minority stakes in Envestnet post-transaction. Additionally, Reverence Capital has agreed to participate, providing additional financial support for the acquisition.

“Through its deeply connected ecosystem and innovative technology and data capabilities, Envestnet has built an industry-leading platform that leading wealth management firms, registered investment advisors and broker-dealers rely on to grow their businesses,” said Phil Loughlin, partner at Bain Capital.

Bain Capital $4.5B Acquisition of Envestnet: Envestnet’s Market Position

Based in Berwyn, Pennsylvania, Envestnet offers comprehensive wealth management software and products to financial advisors and institutions. Overseeing nearly 20 million accounts, the company serves more than 109,000 financial advisors and 800 asset managers.