Fintech
Fintech Envestnet Hopes to Grow from Bain Capital Sale
Image via Envestnet.
Tom Sipp is Executive Vice President of Envestnet
The $4.5 billion sale proposal to the private equity giant Bain Capital could act as a catalyst for accelerated growth of Berwyn-financial technology based InvestorJeff Blumenthal writes for the Philadelphia Business Newspaper.
The deal also includes minority investments from Capital of reverence, Black rock, Faithful Investments, Franklin TempletonAND State Street Global Advisors.
If the deal goes through, Envestnet will become a private company.
The fintech, which develops and distributes wealth management technology and products to financial advisors and institutions, has faced financial turmoil recently. The company posted a net loss of nearly $240 million last year, compared to a loss of $80.9 million in 2022.
Envestnet successfully fended off a proxy challenge from an activist investor Impact Capitalwhich wanted to see a reduction in costs to improve its performance. The dispute was resolved in March 2023.
Reports of a possible sale of the company to Bain first began circulating in April.
“They are a first-class private equity firm,” he said. Thomas SippEnvestnet’s executive vice president of business lines. “You really couldn’t ask for a better track record, a better partner. And they see the strategic value of our business.”
To learn more about Bain Capital’s acquisition of Envestnet, read Philadelphia Business Newspaper.