The news substantiates earlier this week's rumors that the titan of investments was nearing a deal to acquire the fintech company located in Pennsylvania.

Along with a group of other investors that includes BlackRock, Fidelity Investments, Franklin Templeton, and State Street Global Advisors, Reverence Capital, another private investment firm, is also involved in the transaction. According to Envestnet, these investors will each hold "minority positions" in the company after the deal is completed.

Envestnet's board of directors has unanimously authorized the planned purchase, which would turn the fintech into a privately owned business and is anticipated to completion in Q4 2024.

Established in 1999 by Jud Bergman, Bill Crager, Jim Lumberg, and Brandon Thomas, Envestnet is a wealth management platform designed to give companies and financial advisers the information and resources they need to help their customers and improve their financial well-being.

As of right now, it says it oversees "nearly 20 million accounts" and manages "over $6 trillion in assets" for its clients throughout the world.

James Fox, the head of Envestnet's board and interim CEO after longtime leader and co-founder Bill Crager resigned from the position earlier this year, claims the business "conducted a process to maximise value for shareholders."

The transaction is "a great outcome for Envestnet's clients and employees, and one that maintains its entrepreneurial spirit," says Crager, who is still a senior consultant to the company.

The company will support the fintech's development plan "through organic and inorganic initiatives, making further investments in its differentiated product offering, and delivering enhanced value to customers and partners," according to Marvin Larbi-Yeboa, partner at Bain Capital.