The proposed $4.5 billion sale to private equity giant Bain Capital could serve as a catalyst for the accelerated growth of Berwyn-based fintech Envestnet, writes Jeff Blumenthal for the Philadelphia Business Journal.

The deal also includes minority investments from Reverence Capital, BlackRock, Fidelity Investments, Franklin Templeton, and State Street Global Advisors.

If the deal is finalized, Envestnet will become a privately held company.

The fintech, which develops and distributes wealth management technology and products to financial advisers and institutions, has faced some financial struggles recently. The company posted a net loss of almost $240 million last year, compared to an $80.9 million loss in 2022.

Envestnet successfully fended off a proxy challenge from activist investor Impactive Capital, which wanted to see a reduction in costs to improve its performance. The dispute was settled in March 2023.

The first reports of a potential sale of the company to Bain began surfacing in April.

“They are a blue chip private equity firm,” said Thomas Sipp, executive vice president of business lines at Envestnet. “You couldn’t really ask for a better track record, a better partner. And they see the strategic value of our business.”

Read more about Envestnet’s acquisition by Bain Capital in the Philadelphia Business Journal.