Bain Capital to buy Envestnet

Financial software provider Envestnet has entered into a definitive agreement to be acquired by Bain Capital in a transaction valuing the company at $4.5 billion ($63.15 per share). Reverence Capital also agreed to participate in the transaction. Strategic partners BlackRock, Fidelity Investments, Franklin Templeton, and State Street Global Advisors have committed to invest in the proposed transaction, and upon its completion they will hold minority positions in the private company.

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 with “one of the most comprehensive, integrated platforms delivered at scale in a unified, engaging digital experience.” The company currently supports over 800 asset managers on its Wealth Management Platform.

“The Board and its advisors conducted a process to maximize value for shareholders. I’m proud of what Envestnet has achieved over the years in becoming the leading wealth management platform in the industry.” – Jim Fox, Board Chair and Interim CEO of Envestnet.

“Through its deeply connected ecosystem and innovative technology and data capabilities, Envestnet has built an industry-leading platform that the largest wealth management firms, RIAs and broker-dealers rely on to power their businesses.” – Phil Loughlin, a Partner at Bain Capital.

“Given Envestnet’s scale and competitive advantages in an industry that benefits from strong fundamental tailwinds, we believe the company is strategically positioned to achieve its next phase of growth.” – Milton Berlinski, Co-Founder and Managing Partner at Reverence Capital Partners.