Envestnet, Inc. has announced a significant take-private transaction with Bain Capital, valuing the company at $4.5 billion ($63.15 per share). This acquisition marks a major move for the leading wealth technology platform, with Reverence Capital also participating in the transaction. Notably, strategic partners like BlackRock, Fidelity Investments, Franklin Templeton, and State Street Global Advisors have committed to investing in the proposed transaction, signaling confidence in Envestnet's future prospects.
Envestnet manages over $6 trillion in assets, oversees nearly 20 million accounts, and enables more than 109,000 financial advisors to better meet client financial goals. The company supports over 800 asset managers on its wealth management platform and was recently recognized as a leader in financial planning, portfolio management, and billing solutions.
The transaction, which is expected to close in the fourth quarter of 2024, will see Envestnet's common stock no longer publicly listed, making it a privately held company. The deal has been unanimously approved by the Envestnet board of directors and is subject to customary closing conditions, including approval by Envestnet’s shareholders and required regulatory approvals.
Advisors involved in the transaction include Morgan Stanley & Co. LLC, Paul, Weiss, Rifkind, Wharton & Garrison LLP, J.P. Morgan Securities LLC, Ropes & Gray LLP, RBC Capital Markets, BMO Capital Markets, Barclays, and Goldman, Sachs & Co. LLC.
Envestnet's EVP Business Lines, Tom Sipp, expressed excitement about the new chapter for the company, highlighting the commitment to investing in its platform to make it more customized, connected, and intelligent.
With this acquisition, Envestnet aims to accelerate its ability to further elevate its 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.
Bain Capital, with approximately $185 billion in assets under management, is a leading private multi-asset alternative investment firm, while Reverence Capital Partners manages in excess of $10 billion in assets under management, focusing on thematic investing in leading global financial services businesses.
Envestnet's success and its ability to serve more assets, accounts, and advisors have been recognized, positioning the company for its next phase of growth as it enters this new chapter as a privately held company. Following these announcements, the company's shares moved -0.2%, and are now trading at a price of $61.59. If you want to know more, read the company's complete 8-K report here.
