Bain Capital Completes Envestnet Acquisition for Wealth Management

Bain Capital has recently wrapped up its acquisition of Envestnet, a significant technology provider for RIAs and IBDs. As of Monday, Envestnet is now a private company after being delisted from the New York Stock Exchange. This move came with a price tag of approximately $4.5 billion for the private equity firm, marking a new chapter for Envestnet.

Envestnet boasts a massive network, working with over 500 of the nation’s largest RIA firms with more than 111,000 advisors and a staggering $6.5 trillion in total assets on its platform. A special meeting held in September saw an overwhelmingly positive response from stockholders, with over 99% voting in favor of the acquisition.

Reverence Capital and Norwest, along with strategic partners like BlackRock, Fidelity Investments, Franklin Templeton, and State Street Global, who hold minority shares in the business, participated in the transaction. Envestnet’s board chair and interim CEO, Jim Fox, shared his optimism for the company’s future, emphasizing the potential for accelerated growth and the solidification of their position as a top wealth management platform.

Despite the change in ownership, the search for a new permanent CEO is still ongoing. In the meantime, under the leadership of Fox, Envestnet has continued to forge partnerships, develop integrations, and expand its managed account offerings. One such example is the recent strategic partnership with Axos Clearing, the clearing and custody arm of Axos Financial, announced in November. This partnership aims to leverage Envestnet’s managed account technology to enhance their service offerings.