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 financial advice industry has been facing inquiries into its cash sweep programs for years now.
Investor money allegedly went to strip clubs, exotic cars, and landscaping
Procyon adds $415 million in assets under management in New Jersey while Savant picks up a $213 million Southern California planning firm
With a growing number of real estate-rich Baby Boomers aging into retirement, some advisors may be failing to consider all the options available for those clients' assets.
Cornerstone Advisors study reveals compliance bottlenecks stall campaigns weeks after customer opportunities close.
As AI makes financial information more accessible than ever, Lana Hock explains why human judgment, trust, and empathy remain the qualities clients value most in a financial advisor
Northern Trust’s Ken Lassner shows advisors how to convert volatility into after-tax portfolio gains
