Bain Capital to Acquire Envestnet in $4.5B Deal

Bain Capital's acquisition of Envestnet will take the wealth technology platform private, closing in Q4. Stay updated on this $4.5B transaction.

Envestnet, a leading provider of integrated technology for wealth management and financial institutions, is set to undergo a significant change in ownership. Bain Capital has announced its acquisition of Envestnet, with several major financial institutions participating as minority partners in the deal. BlackRock, Fidelity, Franklin Templeton, and State Street Global Advisors are among the partners who will hold minority positions in Envestnet once the transaction is finalized.

The acquisition by Bain Capital will be financed with approximately $2 billion in debt, with Royal Bank of Canada, BMO, Barclays, and Goldman Sachs contributing to the financing package. Additionally, a consortium of private-credit lenders, led by Ares, Blue Owl, and Benefit Street Partners, will provide debt financing for the deal.

Envestnet, headquartered in Berwyn, Pennsylvania, manages over $6 trillion in assets and oversees approximately 20 million accounts with more than 109,000 advisers operating on its platform. The company offers software and data solutions to some of the largest financial institutions in the United States, including 17 of the largest banks and 48 of the 50 largest wealth management and brokerage companies.

The acquisition of Envestnet by Bain Capital, with the participation of major financial institutions as minority partners, marks a significant development in the wealth management industry. The deal is expected to have a substantial impact on the company's operations and the broader financial services sector.