Report: Bain Close to Reaching Deal to Acquire Envestnet

Bain Capital is reportedly close to acquiring financial software provider Envestnet.

If a deal is reached, it could be announced this week, Reuters reported Monday (July 8), citing unnamed sources.

Reached by PYMNTS, both Bain Capital and Envestnet declined to comment on the report.

Envestnet’s software is used by more than 108,000 financial advisors, 16 of the top 20 banks in the United States, and many wealth management and brokerage firms, according to the report.

The firm faced a board challenge from an activist investor that was pushing it to cut costs and responded by adding three new directors last year, the report said.

It’s also in the midst of a leadership transition, as CEO Bill Crager said in January that he would step down from that role and become a senior advisor starting in April, per the report.

When announcing the transition in January, Crager said in a press release that in his new role, he will focus on growing the company’s relationships and empowering its clients.

“We now serve more assets, more financial advisors and more accounts than anyone in the marketplace,” Crager said in the release. “Together, we have built a more integrated, cohesive organization with a connected operating platform that provides a gateway to the future for the industry.”

James L. Fox, who has served as a member of the Envestnet board since 2015 and chair of the board since 2020, took on the additional role of interim CEO April 1.

Envestnet explored a sale in 2022 and was reported to be up for sale again in April, according to Monday’s Reuters report.

The company announced new products and partnerships in the last several weeks. These include an expanded relationship with Fidelity Investments to deliver a unified wealth and advisory platform; deepening relationships with BlackRock, Fidelity Investments, Franklin Templeton and State Street Global Advisors to build investment strategies to be used by advisors; and a new partnership with Salesforce to deliver a more unified platform experience for wealth advisors.

The report of the company’s potential acquisition by Bain Capital comes at a time when mergers and acquisitions are reportedly thriving after a drought.