If finalised, the deal could be announced this week and is expected to value Envestnet close to its current stock price, which stands around USD 63 per share. The sources cited by Reuters, requested anonymity due to the confidential nature of the negotiations, and neither Envestnet nor Bain Capital have responded to requests for comment.
Envestnet offers technology solutions to financial advisers and wealth managers, working with a client base that includes over 108,000 advisers, major US banks, and wealth management firms. Last year, the company added three new directors following a board challenge from activist investor Impactive Capital, which aimed to enhance Envestnet's performance through cost-cutting measures.
It’s worth noting that the company had previously explored a potential sale in 2022 after receiving interest from prospective buyers, as reported by Reuters in April of that year.
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. By joining forces, 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. Through this partnership, iCapital was set to deliver a full suite of research, due diligence, and educational materials to advisors and investors to assist the expanding interest in alternative investing.
In December 2023, Bain Capital sold a USD 448 million stake in India-based private sector financial institution Axis Bank in a block trade. Bain Capital’s affiliates BC Asia Investments VIII, BC Asia Investments III, and Integral Investments South Asia IV sold USD 33.4 million shares, which represented approximately 1.1% of the stake in Axis Bank, with each share valuing approximatively INR 1,119 (USD 13.48). None of the financial institutions provided a reason for the sale.
The final price was set on a 1% premium to the floor price when the deal launched, as well as a 1% discount to the stock’s previous day's close. Axis Bank closed 1.4% lower following the sale of the stake, which was carried out before the market opened.
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