Speculation is growing that one of the biggest names in wealth management technology could be put up for sale.
The initial report from Reuters said that Envestnet is considering selling. The company serves more than 100,000 advisors, 16 of the largest U.S. banks, 48 of the 50 largest wealth management and brokerage firms, and more than 500 of the largest RIAs, among other clients. It boasts $5.8 trillion in platform assets.
The report says that the company has hired Morgan Stanley to advise on a potential sale, although neither firm has commented. Envestnet shares were trading up 9.3% when the market closed Tuesday, having surged more than 10% as the report circulated.
An unnamed source ‘familiar with the matter’ is the basis for the story. The insider also claims that Bain Capital and other private equity firms are among the parties interested in acquiring the major wealth industry player, which has a market cap of around $3.5 billion.
The source noted that the firm had considered a sale in 2022, having been approached by interested parties. Last year, Envestnet considered selling Yodlee, the data aggregation business it bought in 2015.
Envestnet is currently adjusting to a new chapter after Bill Crager, who co-founded the firm in 1999, stepped down as CEO at the end of March and transitioned to a senior advisor role, focusing on client and partner relationships, leaning in on key strategic initiatives, and continuing to be a visionary voice for the financial services industry.
"Starting in April, I will have the time and opportunity to focus on what I have always loved doing – growing Envestnet's relationships and empowering our clients to provide holistic financial advice and solutions. This transition gives me a front-row seat for our next chapter, and I look forward to continuing our journey,” Crager said when the announcement was made in January.
Board chair James L. Fox is serving as interim CEO until a successor for Crager is appointed.
The rush of SEC applications, which also includes JPMorgan and Schwab, reflect growing optimism over the tax-busting fund structure.
Meanwhile, GPB senior executives' sentencing for fraud pushed to May.
RBC and Rockefeller strengthened their East Coast presence, including a $5 billion defection from JPMorgan, as Merrill welcomes a top-caliber advisor in California.
The estate planning tech provider will be providing 700 advisors access to the aggressively growth-focused RIA giant's platform.
Expectations meet reality in the democratization of private market investments as the pioneering ETF runs into first-mover challenges.
RIAs face rising regulatory pressure in 2025. Forward-looking firms are responding with embedded technology, not more paperwork.
As inheritances are set to reshape client portfolios and next-gen heirs demand digital-first experiences, firms are retooling their wealth tech stacks and succession models in real time.
