Envestnet Finalizes $4.5 Billion Go-Private Deal With Bain Capital

Wealth technology provider Envestnet has officially become a private company.

The firm announced Monday (Nov. 25) that it had closed its acquisition by affiliates of vehicles managed or advised by Bain Capital, a deal worth roughly $4.5 billion.

“This represents an exciting new chapter in Envestnet’s history, paving the way for accelerated growth and building on our position as a leading wealth management platform in the industry,” Jim Fox, Envestnet’s board chair and interim CEO, said in a news release.

Added Tom Sipp, Envestnet’s executive vice president: “Together with Bain Capital, Envestnet will continue to deliver on its mission, empowering firms and advisors with the wealth technology and solutions to holistically serve their clients.”

The company had announced its plans to go private in July. Also taking part in the deal were Reverence Capital and Norwest, along with BlackRock, Fidelity Investments, Franklin Templeton and State Street Global Advisors.

According to the release, Envestnet has $6.5 trillion in platform assets, more than 20 million accounts and serves more than 111,000 financial advisors. The company’s technology, advanced insights and comprehensive solutions are designed to help financial advisors improve business growth, productivity and provide better client outcomes.

In other news from the financial advice world, PYMNTS spoke last month with Doug Brown, chief product officer, digital banking at Candescent, about the pressures consumers feel in seeking such advice, with many plagued by a fear of missteps.

“The best partner is in fact the local community bank who understands them and their environment better than most,” Brown told PYMNTS CEO Karen Webster. “There’s been a lot of outreach from both banks and others trying to inform, but what they’re probably doing is creating a little bit more panic than rational help. That’s why consumers are seeking a company they can trust to guide through this.”

Credit unions and smaller banks “want to be top of mind with the small businesses and the consumers in the communities they serve,” Brown added.

These financial institutions, which have existing relationships with consumers, should be natural financial advisors. But research by PYMNTS Intelligence and NCR Voyix (as Candescent was once known) found that only 57% of customers looked to their banks for financial advice last year.