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

Bain Capital is on the verge of buying Envestnet, a number one supplier of software program options for monetary advisors and wealth managers. Valued at roughly $3.5 billion, this acquisition might be introduced as early as this week, marking a pivotal second within the fintech business.

Bain Capital, a outstanding personal fairness agency, is reportedly on the point of finalising a deal to amass Envestnet, a number one U.S.-based monetary expertise firm.

Envestnet, valued at roughly $3.5 billion, specialises in offering software program options for monetary advisors and wealth managers. In keeping with sources acquainted with the negotiations, stories Reuters, the deal might be introduced as early as this week, with Envestnet being valued near its present inventory worth of round $63 per share.

This potential acquisition isn’t the primary time Envestnet has explored sale choices. In 2022, the corporate thought-about a sale following curiosity from a number of potential patrons. Extra just lately, in April, Reuters reported that Envestnet was as soon as once more considering a sale, which led to a surge in its share costs.

The corporate has been working with Morgan Stanley to interact with potential patrons, together with personal fairness companies like Bain Capital.

Envestnet has carved a distinct segment for itself by providing cutting-edge expertise instruments to over 108,000 monetary advisors, 16 of the highest 20 U.S. banks, and quite a few top-tier wealth management and brokerage companies. The agency’s management has been underneath stress from activist investor Impactive Capital to enhance efficiency by way of cost-cutting measures. In response, Envestnet appointed three new administrators to its board final 12 months.

The management at Envestnet is at the moment in a state of flux. CEO Invoice Crager introduced in January that he could be stepping down in March, transitioning to a task as a senior advisor beginning 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 extra position of interim CEO on April 1.

Regardless of these inner modifications, Envestnet has continued to innovate and broaden its partnerships. Final month, the corporate introduced plans to strengthen ties with business giants like BlackRock, Constancy, Franklin Templeton, and State Avenue to assist advisors develop extra personalised funding methods utilizing UMA-eligible direct indexing options.

Moreover, Envestnet expanded its longstanding partnership with Constancy to ship a brand new suite of unified wealth and advisory options on Constancy’s managed accounts platform.