The transaction also involved contributions from Reverence Capital and Norwest, alongside strategic minority investors BlackRock, Fidelity Investments, Franklin Templeton, and State Street Global Advisors. Following these developments, Envestnet will continue to focus on improving advisory services through integrated technology and data solutions. The company operates an ecosystem designed to support advisor growth, streamline productivity, and improve client outcomes.
Officials from Envestnet commented that the acquisition opens opportunities for growth, helping to solidify the company’s role in wealth management. They also noted that the partnership with Bain Capital would allow the firm to continue supporting advisors with advanced tools and solutions to better serve their clients.
As part of the transition, Envestnet’s common stock will no longer be traded publicly on the New York Stock Exchange. The company will now operate as a privately held entity.
Morgan Stanley & Co. LLC served as the exclusive financial advisor to Envestnet, with Paul, Weiss, Rifkind, Wharton & Garrison LLP providing legal counsel. Bain Capital was advised by J.P. Morgan Securities LLC as lead financial advisor, with legal guidance from Ropes & Gray LLP.
Envestnet provides technology and solutions designed for the wealth management industry. Its platform supports banks, brokerage firms, registered investment advisors (RIAs), and financial advisors.
As for Bain Capital, it represents a global investment firm with expertise in private equity, venture capital, real estate, and other asset classes. In April 2024, Bain Capital Credit partnered with fintech platform iCapital to provide financial advisors and investors with access to the former’s product suite.
Through this collaboration, iCapital and Bain Capital Credit intended to allow advisors to receive increased operational efficiency by leveraging the latter’s products via the custom platform enabled by iCapital and the company’s marketplace.
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