Bain Capital has announced a definitive agreement to acquire advisor tech giant Envestnet in a $4.5 billion take-private deal. The transaction values Envestnet at $63.15 per share and is expected to close in the fourth quarter of 2024, pending regulatory approval and customary closing conditions. Upon completion, Envestnet will become a privately held company, with shareholders receiving cash for their shares.
Strategic partners BlackRock, Fidelity Investments, Franklin Templeton, and State Street Global Advisors will invest in the deal, holding minority positions. Reverence Capital will also participate. Bain Capital Partner Marvin Larbi-Yeboa expressed enthusiasm for collaborating with Envestnet's leadership to support growth and enhance value for customers and partners.
Rumors of the acquisition began in April when Reuters reported Envestnet had hired Morgan Stanley to explore potential buyers, with Bain Capital showing interest. Bain currently supports several registered investment advisors, including Carson Group and CI Financial.
This acquisition follows significant leadership changes at Envestnet. Former CEO Bill Crager, who co-founded the company in 1999, stepped down three months ago. He was succeeded by Chairman James Fox as interim CEO while the board searches for a permanent replacement. Crager will remain in a senior advisory role focusing on client and partner relationships.
Envestnet has seen several high-profile executive departures recently. Group Head of Product Innovation Dani Fava left for Carson earlier this year, and former CFO Pete D'Arrigo departed last year. Chief Investment Strategist Tim Clift also left in the previous year for a role at a Newton, Massachusetts-based RIA.
The acquisition comes a year after Envestnet faced a public proxy battle led by activist investor hedge fund Impactive Capital, which criticized the company's stock performance and past decisions. This resulted in the addition of three new board directors, including Impactive co-founder Lauren Taylor Wolfe.
Envestnet manages over $6 trillion in assets, oversees approximately 20 million accounts, and supports more than 109,000 financial advisors.
