Envestnet Announces $4.5 Billion Going-Private Transaction With Bain Capital

Envestnet, a number one supplier of built-in expertise, clever information and wealth options, introduced that it has entered right into a definitive settlement to be acquired by Bain Capital in a transaction valuing the Firm at $4.5 billion ($63.15 per share).

Reverence Capital additionally agreed to take part within the transaction. Strategic companions BlackRock, Constancy Investments, Franklin Templeton, and State Avenue World Advisors have dedicated to put money into the proposed transaction, and upon its completion they may maintain minority positions within the non-public firm.

Envestnet manages over $6 trillion in property, oversees almost 20 million accounts, and allows greater than 109,000 monetary advisors to higher meet shopper monetary targets with one of the complete, built-in platforms delivered at scale in a unified, participating digital expertise.

The Firm has had nice success enhancing the advisor and investor expertise, and at present helps over 800 asset managers on its Wealth Administration Platform. Envestnet was just lately acknowledged by the 2024 T3/Inside Info Advisor Software program Survey as a pacesetter in Monetary Planning, Portfolio Administration, TAMP and Billing Options — reinforcing the energy, depth and breadth of its industry-leading Wealth Administration Platform and dedication to supporting advisor progress and productiveness by way of its deeply related ecosystem.

“The Board and its advisors carried out a course of to maximise worth for shareholders,”

stated Jim Fox, Board Chair and Interim CEO of Envestnet.

“I’m pleased with what Envestnet has achieved over time in changing into the main wealth administration platform within the {industry}.”

“By its deeply related ecosystem and revolutionary expertise and information capabilities, Envestnet has constructed an industry-leading platform that the biggest wealth administration corporations, RIAs and broker-dealers depend on to energy their companies,”

stated Phil Loughlin, a Associate at Bain Capital.

“We stay up for working with Envestnet’s gifted and skilled management workforce and supporting their progress technique by way of natural and inorganic initiatives, making additional investments in its differentiated product providing, and delivering enhanced worth to clients and companions,”

Transaction Particulars

Underneath the phrases of the settlement, which has been unanimously accepted by the Envestnet Board of Administrators, Envestnet shareholders will obtain $63.15 in money for every share of frequent inventory they personal.

The transaction is anticipated to shut within the fourth quarter of 2024, topic to the satisfaction of customary closing circumstances, together with receipt of approval by Envestnet’s shareholders and required regulatory approvals. Upon completion of the transaction, Envestnet’s frequent inventory will not be publicly listed, and Envestnet will turn out to be a privately held firm.

Featured picture credit score: Artist Rendering of Tower Two at Bloc[83]. Edited from Envestnent