Bain Capital to acquire US fintech Envestnet in $4.5bn deal
Bain Capital is set to acquire US wealth management software provider Envestnet in a deal worth $4.5 billion.
Envestnet acquired by Bain Capital in $4.5 billion deal
The announcement confirms reports from earlier this week that the investment giant was closing in on a deal for the Pennsylvania-based fintech.
Fellow private investment firm Reverence Capital is also participating in the transaction, alongside a consortium of additional investors featuring BlackRock, Fidelity Investments, Franklin Templeton, and State Street Global Advisors, who will each hold “minority positions” in the company upon completion of the deal, Envestnet says.
The proposed acquisition, which has been unanimously approved by Envestnet’s board of directors, will see the fintech become a privately held company and is expected to close in Q4 2024.
Founded by Jud Bergman, Bill Crager, Brandon Thomas, and Jim Lumberg in 1999, Envestnet offers a wealth management platform built to provide financial advisors and businesses with the data and financial planning tools needed to better aid their clients and boost their financial well-being.
It currently claims to manage “over $6 trillion in assets” and oversee “nearly 20 million accounts” for its global clients.
Envestnet’s board chair James Fox, who was also named interim CEO earlier this year after long-serving CEO and co-founder Bill Crager stepped down from the role, says the company “conducted a process to maximise value for shareholders”.
Crager, who continues to serve as a senior adviser to the firm, adds that the deal is “a great outcome for Envestnet’s clients and employees, and one that maintains its entrepreneurial spirit”.
Bain Capital partner Marvin Larbi-Yeboa says the firm will work to support the fintech’s growth strategy “through organic and inorganic initiatives, making further investments in its differentiated product offering, and delivering enhanced value to customers and partners”.
