Envestnet to Be Acquired by Bain Capital in $4.5 Billion Deal

Envestnet oversees nearly 20 million accounts, and supports more than 109,000 financial advisors through its comprehensive platform.

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Envestnet Inc., a prominent provider of integrated technology and wealth solutions for financial advisors, has announced a definitive agreement to be acquired by Bain Capital for $4.5 billion, or $63.15 per share.

Reverence Capital will also participate in the transaction, while strategic partners BlackRock, Fidelity Investments, Franklin Templeton, and State Street Global Advisors will hold minority stakes upon the deal’s completion.

Envestnet manages over $6 trillion in assets, overseeing nearly 20 million accounts, and supports more than 109,000 financial advisors through its comprehensive platform. The company has been recognized for its excellence in financial planning, portfolio management, and billing solutions by the 2024 T3/Inside Information Advisor Software Survey.

Jim Fox, Board Chair and Interim CEO of Envestnet, highlighted the board’s efforts to maximize shareholder value, expressing pride in the company’s achievements as a leading wealth management platform.

Phil Loughlin, a Partner at Bain Capital, praised Envestnet’s innovative technology and data capabilities, emphasizing the company’s pivotal role in the wealth management industry. Marvin Larbi-Yeboa, also a Partner at Bain Capital, expressed enthusiasm about supporting Envestnet’s growth strategy and enhancing its product offerings.

Milton Berlinski, Co-Founder and Managing Partner at Reverence Capital Partners, noted Envestnet’s strategic positioning for growth given its scale and competitive advantages.

Tom Sipp, EVP Business Lines of Envestnet, described the acquisition as an exciting new chapter for the company. He emphasized the potential for accelerated growth and enhanced platform functionality as a private company.

The Envestnet Board of Directors has unanimously approved the transaction, which is expected to close in the fourth quarter of 2024, pending shareholder and regulatory approvals. Upon completion, Envestnet will become a privately held company, and its stock will no longer be publicly traded.

Morgan Stanley & Co. LLC served as exclusive financial advisor, and Paul, Weiss, Rifkind, Wharton & Garrison LLP acted as legal counsel to Envestnet. Bain Capital received financial advisory services from J.P. Morgan Securities LLC and legal counsel from Ropes & Gray LLP. Debt financing for the transaction was provided by RBC Capital Markets, BMO Capital Markets, Barclays, Goldman, Sachs & Co. LLC, and funds managed by Ares Management, Blue Owl Capital, and Benefit Street Partners.

Envestnet has been a key player in the wealth management industry for 25 years, with over $6 trillion in platform assets and a vast network of advisors and financial institutions relying on its technology and services.

Bain Capital, founded in 1984, is a leading private multi-asset investment firm with approximately $185 billion in assets under management and offices across four continents.

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