Envestnet sells off Yodlee to PE firm STG

The writing has been on the wall for several years, but it has finally happened: Envestnet is selling its data aggregation and analytics subsidiary Yodlee a decade after its acquisition.

The definitive agreement announced Wednesday will see Yodlee go to the private equity firm STG, marking a strategic shift in focus for the wealthtech company.

The transaction is expected to close in the third quarter of 2025, pending customary approvals. Financial terms were not disclosed.

Yodlee, which Envestnet acquired with high expectations in 2015 for approximately $590 million, will join STG’s portfolio of software and data companies, which includes RSA, Trellix and SurveyMonkey.

The deal represents a new chapter for the data aggregator, which has faced scrutiny in recent years over its handling of consumer financial information.

“This transaction is the first step in our value creation plan as a private company and will allow Envestnet to focus more deeply on its core connected wealth management platform, advanced insights and comprehensive solutions,” Chris Todd, chief executive of Envestnet, said in a statement unveiling the deal.

Todd added that Envestnet, which has been operating as a private company since its take-private acquisition led by Bain Capital, will maintain a partnership with Yodlee to continue supporting financial advisors through the firm’s data aggregation technology.

Founded in 1999, Yodlee built a vast network of financial data sources and serves more than 1,200 institutions, including most of the top 20 US banks. It provides aggregated financial data and analytics to banks, asset managers, RIAs and fintech platforms. Envestnet initially positioned the service as a core part of its push toward providing holistic advice.

However, Yodlee has also been at the center of controversy. In 2020, a group of lawmakers called on the Federal Trade Commission to investigate the company’s sale of consumer financial data. That same year, a class-action lawsuit alleged that Envestnet and Yodlee failed to adequately safeguard user data, exposing individuals to risks of identity theft and fraud. At the time, Envestnet denied the allegations and said it complies with all applicable privacy laws and standards.

For STG, the acquisition aligns with its strategy of investing in data-driven companies. The firm, previously known as Symphony Technology Group, had $12 billion in assets under management as of March 2025.

“Yodlee sits at the intersection of trusted data access and intelligent analytics,” said Marc Bala, managing director at STG. “It has built deep integrations across the financial ecosystem and earned the confidence of the world’s leading banks, asset managers and wealth platforms.”

Following the close of the deal, Yodlee is expected to operate with greater agility and accelerate product development.

STG says it will focus on customer-centric innovation to expand the platform’s offerings in the open finance space.