Envestnet, a provider of integrated technology, intelligent data, and wealth solutions, has announced a definitive agreement to be acquired by Bain Capital in a transaction valuing the company at $4.5bn.
Reverence Capital has also agreed to participate in the transaction.
Strategic partners BlackRock, Fidelity Investments, Franklin Templeton, and State Street Global Advisors have committed to investing in the proposed transaction. Upon completion, they will hold minority positions in the private company.
Envestnet manages over $6 trillion in assets and oversees nearly 20 million accounts, supporting more than 109,000 financial advisers. The company provides a comprehensive, integrated platform that enhances the adviser and investor experience, with over 800 asset managers currently supported on its wealth management platform.
Recognised as a leader in Financial Planning, Portfolio Management, TAMP, and Billing Solutions by the 2024 T3/Inside Information Advisor Software Survey, Envestnet emphasises its commitment to supporting adviser growth and productivity through its interconnected ecosystem.
Bain Capital partner Marvin Larbi-Yeboa said: “Through its deeply connected ecosystem and innovative technology and data capabilities, Envestnet has built an industry-leading platform that the largest wealth management firms, RIAs and broker-dealers rely on to power their businesses.”
Under the terms of the agreement, unanimously approved by Envestnet’s board of directors, shareholders will receive $63.15 in cash for each share of common stock. The transaction is expected to close in the fourth quarter of 2024, subject to customary closing conditions, shareholder approval, and regulatory clearance.
Following the transaction’s completion, Envestnet’s common stock will cease public listing, transitioning the company into private ownership.
Envestnet business lines EVP Tom Sipp said: “This is a validation of Envestnet’s proven ability to operate at market-leading scale – serving more assets, accounts, and advisors and effectively connecting our company and our technology.
“This is an exciting new chapter for Envestnet, our clients, our partners and our employees. Together with Bain Capital, we are committed to investing in our platform making it more customised, connected, and intelligent. As a private company, we can accelerate our ability to further elevate our market-leading platform with greater functionality and an even broader solution set that enables advisors to better serve clients at all stages of their financial life.”
Morgan Stanley & Co. serves as exclusive financial adviser, with Paul, Weiss, Rifkind, Wharton & Garrison providing legal counsel to Envestnet.
J.P. Morgan Securities acts as lead financial adviser to Bain Capital, supported by Ropes & Gray as legal counsel.
RBC Capital Markets, BMO Capital Markets, Barclays, and Goldman, Sachs & Co. provided committed debt financing and financial advisory services to Bain Capital, with additional debt financing from funds managed by Ares Management, Blue Owl Capital, and Benefit Street Partners.
