Envestnet is as soon as once more a non-public firm and has been delisted from the New York Inventory Trade.
Bain Capital’s acquisition of the corporate formally closed on Monday, with the personal fairness agency paying about $4.5 billion for Envestnet, based on an announcement.
The behemoth expertise agency works with greater than 500 of the nation’s largest RIA companies, has over 111,000 advisors and holds $6.5 trillion in complete belongings on its platform.
Stockholders overwhelmingly agreed to the merger at a particular assembly in September. A preliminary tally of votes indicated that greater than 99% of stockholders agreed to the acquisition.
Reverence Capital and Norwest participated within the transaction, as did strategic companions BlackRock, Constancy Investments, Franklin Templeton and State Road World, which maintain minority shares within the enterprise.
“This represents an thrilling new chapter in Envestnet’s historical past, paving the way in which for accelerated progress and constructing on our place as a number one wealth administration platform within the business,” stated Jim Fox, board chair and interim CEO for Envestnet, in an announcement.
Fox was named interim CEO when Invoice Crager stepped down earlier this 12 months. In a new SEC filing, the corporate revealed Fox’s contract had been prolonged to the top of January 2025. In response to an organization spokesperson, the closing of the deal doesn’t affect the continued CEO search.
All through the interval because the introduced acquisition, Envestnet has continued to work on partnerships, integrations and consolidation and growth of its managed account choices.
Axos Clearing, the clearing and custody arm of Axos Monetary, announced a strategic partnership with Envestnet initially of November. On this partnership, Envestnet’s managed account expertise can be built-in into Axos Clearing’s Axos Full workstation, which serves registered funding advisors, hybrid advisors and impartial dealer/sellers.
In September, Envestnet made several announcements, together with enhancements to BillFin, the cloud-based advisory billing software program for RIAs that resulted from its acquisition of Redi2 Applied sciences in 2022, the rollout of Office for RIAs, and the provision of fund strategist portfolios from partners that was first announced in June.
Envestnet has been topic to takeover hypothesis since CEO Judson Bergman and his spouse, Mary Miller, died in a San Francisco automotive accident in 2019. Rumors of Bain’s curiosity first surfaced in April.
Bergman and then-Envestnet President Crager led the agency by way of a 2010 IPO, elevating $30 million (Crager grew to become CEO in 2020).
The agency was based in 1999 and made its first acquisition of managed accounts supplier Portfolio Administration Consultants (PMC) in 2001.
