Envestnet shareholders OK Bain Capital acquisition

Envestnet shareholders OK Bain Capital acquisition
The deal to take the $6.2T wealth tech platform private is pushing through with virtually unanimous approval.
SEP 25, 2024

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.

Raising appeal for RIAs

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.

Latest News

JPMorgan tells fintech firms to start paying for customer data
JPMorgan tells fintech firms to start paying for customer data

The move to charge data aggregators fees totaling hundreds of millions of dollars threatens to upend business models across the industry.

FINRA snapshot shows concentration in largest firms, coastal states
FINRA snapshot shows concentration in largest firms, coastal states

The latest snapshot report reveals large firms overwhelmingly account for branches and registrants as trend of net exits from FINRA continues.

Why advisors to divorcing couples shouldn't bet on who'll stay
Why advisors to divorcing couples shouldn't bet on who'll stay

Siding with the primary contact in a marriage might make sense at first, but having both parties' interests at heart could open a better way forward.

SEC spanks closed Osaic RIA for conflicts, over-charging clients on alternatives
SEC spanks closed Osaic RIA for conflicts, over-charging clients on alternatives

With more than $13 billion in assets, American Portfolios Advisors closed last October.

William Blair taps former Raymond James executive to lead investment management business
William Blair taps former Raymond James executive to lead investment management business

Robert D. Kendall brings decades of experience, including roles at DWS Americas and a former investment unit within Morgan Stanley, as he steps into a global leadership position.

SPONSORED How advisors can build for high-net-worth complexity

Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.

SPONSORED RILAs bring stability, growth during volatile markets

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.