Envestnet confirms $4.5 billion acquisition

Envestnet confirms $4.5 billion acquisition
Wealthtech titan to be snapped up in a transaction that also includes Reverence Capital, BlackRock, Fidelity, and other strategic partners.
JUL 11, 2024

Envestnet has confirmed that it will soon be purchased by Bain Capital and Reverence in what promises to be a seismic take-private deal.

The wealth tech behemoth announced Thursday its agreement to be acquired by Bain Capital in a $4.5 billion transaction. The deal, which values Envestnet at $63.15 per share, includes participation from Reverence Capital.

Strategic partners including BlackRock, Fidelity Investments, Franklin Templeton, and State Street Global Advisors have committed to investing in the transaction, retaining minority stakes in the private entity.

Bain Capital also received financial advisory services for the transaction from RBC Capital Markets, BMO Capital Markets, Barclays, and Goldman Sachs, who all provided debt financing for the transaction.

The deal, unanimously approved by Envestnet’s board, is expected to close in the fourth quarter of 2024, pending customary conditions. Upon the deal’s completion, Envestnet will delist its shares and continue operating as a private company.

The possibility of the transaction first came to light Tuesday afternoon with a report from Reuters citing unnamed sources who were familiar with the matter.

Envestnet oversees more than $6 trillion in assets and supports nearly 20 million accounts. The platform assists over 109,000 financial advisors in achieving client financial goals, leveraging an integrated digital experience. The company’s Wealth Management Platform also supports over 800 asset managers.

"The Board and its advisors conducted a process to maximize value for shareholders," Jim Fox, board chair and interim CEO of Envestnet said in a statement Thursday. "I'm proud of what Envestnet has achieved over the years in becoming the leading wealth management platform in the industry."

Phil Loughlin, a partner at Bain Capital, remarked, "Through its deeply connected ecosystem and innovative technology and data capabilities, Envestnet has built an industry-leading platform that the largest wealth management firms, RIAs, and broker-dealers rely on to power their businesses."

Marvin Larbi-Yeboa, also a partner at Bain Capital, said it would provide continued support for Envestnet as it pursues organic and inorganic growth initiatives.

"We look forward to working with Envestnet's talented and experienced leadership team and … making further investments in its differentiated product offering, and delivering enhanced value to customers and partners," Larbi-Yeboa said.

"This is a validation of Envestnet's proven ability to operate at market-leading scale - serving more assets, accounts, and advisors and effectively connecting our company and our technology," added Tom Sipp, Envestnet’s executive vice president of business lines.

Bill Crager, co-founder of Envestnet who relinquished his position as CEO in April, expressed high hopes for his firm’s future.

"This is a great outcome for Envestnet's clients and employees, and one that maintains its entrepreneurial spirit,” Crager said. “Envestnet is exceptionally well-positioned to continue to build a gateway to the future of financial advice."

Envestnet Co-Founder Bill Crager forecasts the future of the financial advisory business

Latest News

Raymond James bags advisors from LPL, Edward Jones
Raymond James bags advisors from LPL, Edward Jones

The firm's latest additions in Indiana and South Dakota, including a family-run advisory team, managed more than $500M combined at their previous firms.

$685M Merrill Lynch trio departs for LPL
$685M Merrill Lynch trio departs for LPL

The three advisors joining the firm in Kansas are launching their own venture through its independent affiliate channel.

Finra board chair Noll takes the lead as CEO of digital wealth firm
Finra board chair Noll takes the lead as CEO of digital wealth firm

Industry veteran says digital transformation is firm's big opportunity.

Despite political polarization, most Americans are united on retirement concerns
Despite political polarization, most Americans are united on retirement concerns

Protecting Social Security and other key priorities revealed.

Raging Milton to mean substantial losses for cat bond investors
Raging Milton to mean substantial losses for cat bond investors

Hurricane is expected to cause severe disruption in Florida.

SPONSORED Destiny Wealth Partners: RIA Team of the Year shares keys to success

Discover the award-winning strategies behind Destiny Wealth Partners' client-centric approach.

SPONSORED Explore four opportunities to elevate advisor-client relationships

Morningstar’s Joe Agostinelli highlights strategies for advisors to deepen client engagement and drive success