Envestnet Bain Capital Deal Worth $4.5 Billion

Envestnet has entered into a definitive agreement with Bain Capital to acquire a majority stake in the company for $4.5 billion.

This deal marks a significant milestone in Envestnet's history, with the company's value more than doubling in just a few years.

The acquisition is expected to be completed in the second quarter of 2023, pending regulatory approvals.

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Bain Capital's involvement in the Envestnet deal is a significant move into the wealth management space. Bain has historically been a portfolio buyer, and their decision to acquire Envestnet suggests they see value in the company's position on the cusp of multiple growth areas.

Philip Waxelbaum, a principal in Masada Consulting, notes that Bain is one of the smartest money on earth, and their commitment to the 401(k) space is a significant development. This move is a step forward in scale, as the 401(k) business has been fragmented, and few competitors have the economic power to capture above the mean market share.

Bain's other significant commitment into wealth was a minority investment in Carson Group, but this was done through a convertible debt fund, not an equity ownership. In contrast, the Envestnet deal represents a more substantial investment by Bain.

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Envestnet, a wealth technology platform, has agreed to be acquired by Bain Capital and Reverence Capital in a $4.5 billion take-private transaction.

The deal is valued at $4.5 billion and Envestnet's shareholders will receive $63.15 in cash for each share of common stock they own.

Envestnet currently services more than $6 trillion in assets for 20 million accounts.

Bain is poised to capitalize in the growing market for reporting and portfolio management technology due to the increasing number of advisers breaking away from wirehouses and large broker/dealers.

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