ANALYSIS: Envestnet’s Future Under Bain Capital

Charles Paikert

7 October 2024

Envestnet is going to be a very different company next year.

Shareholders have approved a deal that will make the troubled back-office behemoth, still the industry’s largest turnkey asset management program (TAMP) and software service provider, a private company controlled by , and others again will get bought and be used for launching outsourcing services to RIAs.”

TAMPs are shape shifting, Welsh asserted. “TAMPS are becoming cool again, just not the big behemoths like SEI, Asset Mark, and Envestnet,” he said. “Advisors want to have personalized portfolios at scale, and that can only come from nimble, digital players with outsourced CIO services.”

TAMPs won’t become obsolete, according to Wunderli. “Advisors will always have a need for outsourcing certain aspects of their business,” he explained. “The meaning of the word ‘TAMP’ has already evolved from simply being an investment solutions provider to being more of a full-service back- and middle-office provider for advisors.

“Bain will need to keep Envestnet out in front of this curve, focusing on its biggest current strengths and building out in the areas where they already have strategic advantages. I fully expect that Bain has some other tricks up its sleeve as well.”