Envestnet Inc., a fintech company whose chief executive died in a car accident 2½ years ago, is exploring options after receiving takeover interest, according to people familiar with the matter.
The Chicago-based company has recently been approached by at least one private equity firm interested in acquiring it, said the people, who asked to not be identified because the matter isn’t public. Although the company is evaluating the interest, no transaction is imminent, one of the people said.
Envestnet rose 8.4% to $71.56 at 1:38 p.m. in New York on Tuesday, giving the company a market value of about $3.9 billion. The stock has fallen 9.5% in the past year.
A representative for Envestnet declined to comment.
Private equity firms have been using their war chests to go shopping for technology-focused financial services firms. Buyout firms like these assets because they generate steady cash and can be used as consolidation platforms. Madison Dearborn Partners agreed this month to buy money-transfer service MoneyGram International Inc. for about $1 billion in cash.
Envestnet offers software and data to to wealth managers, banks and other clients that helps them manage and evaluate investments. More than 106,000 advisers and over 5,100 companies use its technology and services, according to its latest annual report.
The company has been subject to takeover speculation since CEO Judson Bergman and his wife, Mary Miller, died in a San Francisco car accident in 2019.
From outstanding individuals to innovative organizations, find out who made the final shortlist for top honors at the IN awards, now in its second year.
Cresset's Susie Cranston is expecting an economic recession, but says her $65 billion RIA sees "great opportunity" to keep investing in a down market.
“There’s a big pull to alternative investments right now because of volatility of the stock market,” Kevin Gannon, CEO of Robert A. Stanger & Co., said.
Sellers shift focus: It's not about succession anymore.
Platform being adopted by independent-minded advisors who see insurance as a core pillar of their business.
RIAs face rising regulatory pressure in 2025. Forward-looking firms are responding with embedded technology, not more paperwork.
As inheritances are set to reshape client portfolios and next-gen heirs demand digital-first experiences, firms are retooling their wealth tech stacks and succession models in real time.
