Massive $4.5bn deal: Envestnet set for major shift with Bain Capital takeover!

Envestnet, Inc., a premier provider of integrated technology and wealth management solutions, has entered into a definitive agreement to be acquired by Bain Capital. The transaction values Envestnet at approximately $4.5 billion, or $63.15 per share, and includes significant investment participation from strategic partners such as BlackRock, Fidelity Investments, Franklin Templeton, and State Street Global Advisors, which will hold minority stakes in the now private company.

Envestnet, recognized for managing over $6 trillion in assets and supporting nearly 20 million accounts, is renowned for its comprehensive wealth management platform that enhances financial advisory services through advanced technology and data integration. The company’s robust platform services over 109,000 financial advisors and supports more than 800 asset managers, reinforcing its position as an industry leader.

The acquisition by Bain Capital, a leading global private investment firm, marks a pivotal moment for Envestnet as it transitions from a public entity to a private organization. The deal is structured to enhance Envestnet’s capabilities and expand its market reach, with Bain Capital planning to invest in organic and inorganic growth initiatives that will further differentiate Envestnet’s product offerings.

Jim Fox, Board Chair and Interim CEO of Envestnet, emphasized the transaction’s focus on maximizing shareholder value and expressed pride in Envestnet’s evolution into a top-tier wealth management platform. Partners at Bain Capital, Phil Loughlin and Marvin Larbi-Yeboa, expressed enthusiasm about working with Envestnet’s leadership to accelerate the company’s growth strategies and enhance value delivery to customers and partners.

The acquisition is expected to close in the fourth quarter of 2024, pending Envestnet shareholder approval and regulatory clearances. Upon completion, Envestnet’s common stock will be delisted from the NYSE, and the company will continue to operate from its headquarters, driven by its longstanding mission to empower financial advisors and institutions.

Milton Berlinski, Co-Founder and Managing Partner at Reverence Capital Partners, remarked on Envestnet’s strategic positioning for future growth, highlighting its scale and competitive advantages in a fundamentally strong industry. Tom Sipp, EVP Business Lines of Envestnet, also noted the deal as an exciting new chapter for the company, aiming to enhance its platform’s functionality and broaden its solution set for advisors.

Morgan Stanley & Co. LLC and Paul, Weiss, Rifkind, Wharton & Garrison LLP are advising Envestnet on this transaction. Bain Capital is advised by J.P. Morgan Securities LLC and Ropes & Gray LLP, with additional financial support and advisory from RBC Capital Markets, BMO Capital Markets, Barclays, and Goldman, Sachs & Co. LLC.

This strategic acquisition represents a significant development in the financial technology landscape, positioning Envestnet for a new phase of innovation and market leadership. The partnership with Bain Capital promises to fortify Envestnet’s offerings, enhancing its ability to serve advisors and clients with even more sophisticated and integrated solutions.