Envestnet is once again a private company and has been delisted from the New York Stock Exchange.
Acquisition of Bain Capital of the company officially closed on Monday, with the private equity firm paying about $4.5 billion for Envestnet, according to a release.
The tech giant works with more than 500 of the nation's largest RIA firms, has over 111,000 advisors and has $6.5 trillion in total assets on its platform.
Shareholders overwhelmingly agreed to the merger at a special meeting in September. A preliminary vote count showed that more than 99% of shareholders agreed to the acquisition.
Reverence Capital and Norwest participated in the transaction, as well as strategic partners BlackRock, Fidelity Investments, Franklin Templeton and State Street Global, which hold minority stakes in the business.
“This represents an exciting new chapter in Envestnet's history, paving the way for accelerated growth and building our position as a leading wealth management platform in the industry,” said Jim Fox, chairman and interim CEO for Envestnet. in a statement.
Fox was named interim CEO when Bill Crager resigned earlier this year. In one new SEC filingthe company revealed that Fox's contract had been extended until the end of January 2025. According to a company spokesperson, the closing of the deal does not affect the ongoing search for a CEO.
Throughout the period since the announced acquisition, Envestnet has continued to work on partnerships, integrations and consolidation and expansion of managed account offerings.
Axos Clearing, the clearing and custody arm of Axos Financial, announced a strategic partnership with Envestnet in early November. In this partnership, Envestnet's managed account technology will be integrated into Axos Clearing's Axos Complete workstation, which serves registered investment advisors, hybrid advisors and independent broker/dealers.
In September, Envestnet made several announcementsincluding enhancements to BillFin, cloud-based advisory billing software for RIAs resulting from the 2022 acquisition of Redi2 Technologies, the introduction of Workplace for RIAs, and the availability of fund strategist portfolios from partners that were first announced in June.
Envestnet has been the subject of acquisition speculation since CEO Judson Bergman and his wife, Mary Miller, died in a car crash in San Francisco in 2019. Rumors of Bain's interest first surfaced in April.
Bergman and then-Envestnet president Crager led the firm through a 2010 IPO, raising $30 million (Crager became CEO in 2020).
The firm was founded in 1999 and made its first acquisition of managed account provider Portfolio Management Consultants (PMC) in 2001.