In a landmark transaction, Ropes & Gray-led Bain Capital is set to acquire Envestnet Inc. for $4.5 billion in a take-private deal, as announced on Thursday. The acquisition, guided by Paul Weiss, reflects Bain Capital’s strategic expansion in the financial technology sector.
Bain Capital $4.5B Acquisition of Envestnet : Key Details of the Acquisition
Under the approved agreement by Envestnet’s board, shareholders will receive $63.15 in cash per share of common stock. The transaction is slated to close in the fourth quarter of 2024, pending shareholder and regulatory approvals.
Strategic Investments and Partnerships
Significant industry players including BlackRock, Fidelity Investments, Franklin Templeton, and State Street Global Advisors have committed to investing in the deal, securing minority stakes in Envestnet post-transaction. Additionally, Reverence Capital has agreed to participate, reinforcing the financial backing for this acquisition.
“Through its deeply connected ecosystem and innovative technology and data capabilities, Envestnet has built an industry-leading platform that the largest wealth management firms, registered investment advisers, and broker-dealers rely on to power their businesses,” stated Phil Loughlin, a partner at Bain Capital.
Bain Capital $4.5B Acquisition of Envestnet : Envestnet’s Market Position
Based in Berwyn, Pennsylvania, Envestnet provides comprehensive wealth management software and products, serving financial advisers and institutions. With oversight of nearly 20 million accounts, the company supports over 109,000 financial advisers and 800 asset managers.
