Private equity firm Bain Capital is reportedly on the verge of finalizing a deal to acquire Envestnet, the enterprise wealth tech provider.
According to individuals familiar with the negotiations, the company with a market value of approximately $3.5 billion is in talks to be acquired by the PE giant, reported Reuters.
This isn’t the first time the possibility of Envestnet being sold has entered industry conversation. Whispers of that scenario were in the wind as early as 2022; that year, the company explored a sale following interest from several potential buyers.
In April, Reuters reported that Envestnet was once again considering a sale, pushing up share prices as speculation spread.
If the reported discussions proceed as anticipated, an agreement could be unveiled by the end of this week, with Envestnet being valued close to its current stock price of roughly $63 per share.
A specialist provider of technology solutions to financial advisers and wealth managers, the firm's clientele includes over 108,000 advisers, 16 of the 20 largest banks in the US, and numerous top-tier wealth management and brokerage firms.
Last year, Envestnet faced a board challenge from activist investor Impactive Capital, which had been advocating for improved performance through cost-cutting measures. In response, Envestnet appointed three new directors to its board.
The firm’s leadership is also in a state of flux after CEO Bill Crager’s January announcement that he would be stepping down in March, thereafter transition to a role as a senior adviser beginning in April.
Just last month, the storied fintech giant unveiled plans to strengthen ties with BlackRock, Fidelity, Franklin Templeton and State Street to help advisors on its platform develop more personalized investment strategies using UMA-eligible direct indexing solutions.
In a separate development, the firm also expanded on its longstanding partnership with Fidelity to deliver a new suite of unified wealth and advisory solutions on Fidelity’s managed accounts platform.
While industry statistics pointing to a succession crisis can cause alarm, advisor-owners should be free to consider a middle path between staying solo and catching the surging wave of M&A.
New joint research by T. Rowe Price, MIT, and Stanford University finds more diverse asset allocations among older participants.
With its asset pipeline bursting past $13 billion, Farther is looking to build more momentum with three new managing directors.
A Department of Labor proposal to scrap a regulatory provision under ERISA could create uncertainty for fiduciaries, the trade association argues.
"We continue to feel confident about our ability to capture 90%," LPL CEO Rich Steinmeier told analysts during the firm's 2nd quarter earnings call.
Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.
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.
