Envestnet’s multi-billion dollar take-private deal with Bain Capital and other investors has been locked in, with virtually all of its shareholders signaling their support.
In a statement Tuesday, Envestnet revealed the results of a special shareholder meeting in which approximately 99.33 percent of the votes cast were in favor of the transaction.
The deal is expected to close in the fourth quarter of 2024, pending the completion of customary closing conditions, according to the statement.
The deal was first confirmed by the wealth tech titan in July. At that time, Envestnet said it was being acquired by Bain Capital along with Reverence Capital and strategic partners BlackRock, Fidelity Investments, and State Street Global Advisors, in a $4.5 billion transaction that valued Envestnet at $63.15 per share.
Envestnet’s platform oversees more than $6 trillion in assets and supports nearly 20 million client accounts, with over 109,000 financial advisors using the company’s services. The transaction, which will see the firm delist from the New York Stock Exchange, is expected to further strengthen Envestnet’s position in the wealth technology sector.
"The Board and its advisors conducted a process to maximize value for shareholders," James Fox, board chair and interim CEO of Envestnet said in a statement at the time. "I'm proud of what Envestnet has achieved over the years in becoming the leading wealth management platform in the industry."
Fox stepped into the CEO role following the departure of Bill Crager, the firm's co-founder and longtime CEO, effective March 31. The company announced that move in the beginning of January.
It's unclear at this point whether Fox will be appointed as chief executive on a permanent basis after Envestnet goes private.
The news of the special shareholder meeting at Envestnet comes on the heels of its appearance at the Future Proof 2024 festival held in Huntington Beach, California, in which the firm emphasized its commitment to serve the needs of RIAs with technology updates .
"Supporting the growth and productivity of RIAs with our Envestnet | Tamarac and wealth technology solutions remains a strategic area of focus for our business," Molly Weiss, group president of Wealth Management Platform at Envestnet, said in a statement revealing the enhancements.
Among other advancements, the fintech firm revealed new features such as an Order Blotter Tool to simplify fixed income trade management, a to-be-launched RIA Marketplace for users to access fund strategist portfolios and managed account portfolios, and a platform to help RIAs enter the retirement investing space.
Envestnet has been a fixture in the wealth industry for 25 years, boasting more than $6.2 trillion in platform assets. It serves more than 110,000 advisors, 17 of the 20 largest U.S. banks, 48 of the 50 largest wealth management and brokerage firms, more than 500 of the largest RIAs.
Blue Anchor Capital Management and Pickett also purchased “highly aggressive and volatile” securities, according to the order.
Reshuffle provides strong indication of where the regulator's priorities now lie.
Goldman Sachs Asset Management report reveals sharpened focus on annuities.
Ahead of Father's Day, InvestmentNews speaks with Andrew Crowell.
Cerulli research finds nearly two-thirds of active retirement plan participants are unadvised, opening a potential engagement opportunity.
Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today’s choppy market waters, says Myles Lambert, Brighthouse Financial.
How intelliflo aims to solve advisors' top tech headaches—without sacrificing the personal touch clients crave
