Envestnet in talks to be snapped up by Bain Capital, say sources

Private equity firm Bain Capital is reportedly on the verge of finalizing a deal to acquire Envestnet, the enterprise wealth tech provider.

According to individuals familiar with the negotiations, the company with a market value of approximately $3.5 billion is in talks to be acquired by the PE giant, reported Reuters.

This isn’t the first time the possibility of Envestnet being sold has entered industry conversation. Whispers of that scenario were in the wind as early as 2022; that year, the company explored a sale following interest from several potential buyers.

In April, Reuters reported that Envestnet was once again considering a sale, pushing up share prices as speculation spread.

If the reported discussions proceed as anticipated, an agreement could be unveiled by the end of this week, with Envestnet being valued close to its current stock price of roughly $63 per share.

A specialist provider of technology solutions to financial advisers and wealth managers, the firm's clientele includes over 108,000 advisers, 16 of the 20 largest banks in the US, and numerous top-tier wealth management and brokerage firms.

Last year, Envestnet faced a board challenge from activist investor Impactive Capital, which had been advocating for improved performance through cost-cutting measures. In response, Envestnet appointed three new directors to its board.

The firm’s leadership is also in a state of flux after CEO Bill Crager’s January announcement that he would be stepping down in March, thereafter transition to a role as a senior adviser beginning in April.

Just last month, the storied fintech giant unveiled plans to strengthen ties with BlackRock, Fidelity, Franklin Templeton and State Street to help advisors on its platform develop more personalized investment strategies using UMA-eligible direct indexing solutions.

In a separate development, the firm also expanded on its longstanding partnership with Fidelity to deliver a new suite of unified wealth and advisory solutions on Fidelity’s managed accounts platform.