(Citywire) Envestnet’s sale process has been narrowed down to two bidders.
Sources with knowledge of the situation told Citywire that private equity firms Advent International and Warburg Pincus are the last suitors vying for the publicly traded portfolio management software company.
The sources said that more firms have expressed interest in Envestnet, but that the sale process has been competitive, with many interested parties getting locked out of the bidding.
An Envestnet spokeswoman said, ‘we do not comment on rumor or speculation in the market.’ Advent and Warburg Pincus declined to comment.
Headquartered in Boston, Advent International has a track record of investing in financial technology companies, such as payment processors, but has not made any deals to date with notable players in the US wealth management industry. Among the company’s US-based portfolio companies are hair care brand Olaplex and antivirus software company McAfee.
In contrast, Warburg Pincus has been one of the RIA industry’s most active private equity investors in recent years. The New York-based company backs RIA giant Edelman Financial Engines, independent broker-dealer Kestra Holdings and Facet Wealth, an RIA which specializes in serving smaller-dollar clients that larger practices consider unprofitable.
Talk of a potential Envestnet sale has circulated for a little more than a month. In late February, Bloomberg News reported that at least one private equity firm had approached the company with a takeover offer. Barron’s followed up by reporting Envestnet had hired Piper Sandler to serve as its financial advisor for a sale process.
Envestnet went public in 2010, 11 years after its 1999 founding. In addition to its portfolio management software, Envestnet offers advisors a turnkey asset management program (TAMP) and owns the MoneyGuide suite of financial planning software.
Envestnet is led by chief executive Bill Crager, who took over in 2019 after the death of then-CEO Jud Bergman.
Envestnet plans to shutter its Chicago headquarters and relocate to its office in the Philadelphia suburb of Berwyn, Pa. as part of a broader move toward remote work, Citywire reported on Tuesday.
Despite jumping in late February amid earlier reporting about its sale process, Envestnet shares are still at best flat YTD.
