Bain Capital close to sealing deal to buy Envestnet, sources say

Bain Capital, a prominent private equity firm, is reportedly on the brink of finalising a deal to acquire Envestnet, a leading U.S.-based financial technology company.

Envestnet, valued at approximately $3.5 billion, specialises in providing software solutions for financial advisors and wealth managers. According to sources familiar with the negotiations, reports Reuters, the deal could be announced as early as this week, with Envestnet being valued close to its current stock price of around $63 per share.

This potential acquisition is not the first time Envestnet has explored sale options. In 2022, the company considered a sale following interest from several potential buyers. More recently, in April, Reuters reported that Envestnet was once again contemplating a sale, which led to a surge in its share prices.

The company has been working with Morgan Stanley to engage with potential buyers, including private equity firms like Bain Capital.

Envestnet has carved a niche for itself by offering cutting-edge technology tools to over 108,000 financial advisors, 16 of the top 20 U.S. banks, and numerous top-tier wealth management and brokerage firms. The firm’s leadership has been under pressure from activist investor Impactive Capital to improve performance through cost-cutting measures. In response, Envestnet appointed three new directors to its board last year.

The leadership at Envestnet is currently in a state of flux. CEO Bill Crager announced in January that he would be stepping down in March, transitioning to a role as a senior advisor starting in April. James L. Fox, who has served as a member of the Envestnet board since 2015 and as chair since 2020, took on the additional role of interim CEO on April 1.

Despite these internal changes, Envestnet has continued to innovate and expand its partnerships. Last month, the company announced plans to strengthen ties with industry giants like BlackRock, Fidelity, Franklin Templeton, and State Street to help advisors develop more personalized investment strategies using UMA-eligible direct indexing solutions.

Additionally, Envestnet expanded its longstanding partnership with Fidelity to deliver a new suite of unified wealth and advisory solutions on Fidelity’s managed accounts platform.

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