Envestnet Acquired by Bain Capital in $4.5 Billion Deal

Deal News | Nov 25, 2024 | EIN

Envestnet Acquired by Bain Capital in $4.5 Billion Deal

Bain Capital has completed its acquisition of Envestnet, finalizing the deal for approximately $4.5 billion. Envestnet, a prominent technology firm assisting over 500 major RIA firms in the U.S., boasts 111,000 advisors and manages $6.5 trillion in assets. The acquisition led to the delisting of Envestnet from the New York Stock Exchange. Stockholders meeting in September saw more than 99% agreeing to the merger. Reverence Capital and Norwest joined strategic partners including BlackRock, Fidelity Investments, Franklin Templeton, and State Street Global in participating in the transaction. This acquisition marks a pivotal moment for Envestnet, with interim CEO Jim Fox aiming for accelerated growth in their wealth management platform. Envestnet has actively sought partnerships and integrations, highlighted by a recent collaboration with Axos Clearing. The deal follows a period of speculation post the 2019 passing of CEO Judson Bergman. Jim Fox's term as interim CEO extends until January 2025 amid a continued search for a permanent CEO.

Sectors

  • Private Equity
  • Wealth Management Technology
  • Financial Services

Geography

  • United States – Envestnet, the acquired company, and most of its strategic partners and major RIAs are based in the United States.

Industry

  • Private Equity – Bain Capital, a prominent private equity firm, led the acquisition of Envestnet, exemplifying its influence and activity within the sector.
  • Wealth Management Technology – Envestnet operates in the wealth management technology space, providing solutions for RIAs and managing trillions in assets.
  • Financial Services – The transaction involves key players in financial services, including strategic partners like BlackRock and Fidelity Investments.

Financials

  • $4.5 billion – The acquisition price Bain Capital paid for Envestnet.
  • $6.5 trillion – The total assets under management on Envestnet's platform.
  • $30 million – Raised during Envestnet's IPO in 2010.

Participants

NameRoleTypeDescription
EnvestnetTarget CompanyCompanyA leading technology company providing services to RIAs and managing $6.5 trillion in assets.
Bain CapitalBidding CompanyCompanyA major private equity firm that acquired Envestnet.
Reverence CapitalStrategic PartnerCompanyA firm that participated in the acquisition transaction of Envestnet.
NorwestStrategic PartnerCompanyParticipated in the transaction as a strategic partner.
BlackRockStrategic PartnerCompanyHolds minority shares in Envestnet and participated in the transaction.
Fidelity InvestmentsStrategic PartnerCompanyA strategic partner with a stake in Envestnet.
Franklin TempletonStrategic PartnerCompanyA strategic partner holding minority shares in Envestnet.
State Street GlobalStrategic PartnerCompanyOne of the strategic partners with a minority stake in Envestnet.
Jim FoxInterim CEOPersonCurrently serving as interim CEO and board chair of Envestnet.
Axos FinancialPartnering CompanyCompanyAxos Clearing is collaborating with Envestnet on managed account technology integration.
Bill CragerFormer CEOPersonFormer CEO of Envestnet, stepped down earlier in the year.