Isabel O'Brien’s Post

Bain Capital is on the brink of finalising a deal to acquire Envestnet, Inc, an of intelligent systems provider for wealth management and financial wellness. With Envestnet valued at approximately $3.5 billion, this acquisition could be a game-changer, giving Bain Capital a strategic push into the fintech sector. 👉 Dive into the details of this acquisition: https://lnkd.in/d-fJZRZH #finance #fintech #acquisition #privateequity #Envestnet #BainCapital #WealthManagement

Bain Capital is nearing a deal to acquire Envestnet, a top fintech firm, for about $3.5 billion. Envestnet, known for its innovative software for financial advisors, could announce the deal soon, reflecting its stock price of $63/share. This follows Envestnet’s exploration of sale options in 2022 and recent sale considerations reported in April. With over 108,000 financial advisors served, Envestnet has been urged by Impactive Capital to enhance performance. Amidst leadership changes, Envestnet continues to innovate, notably expanding partnerships with financial giants for personalized investment strategies. #Fintech #Acquisition #BainCapital #Envestnet #FinancialAdvisors #Innovation

In a notable surge, the FinTech IPO Index climbed 8.67% this week, propelled by Bill.com’s strategic focus on small and medium-sized businesses (SMBs). This uptick underscores the growing influence of SMB-oriented financial technology solutions in the market.

**Exciting Times Ahead for Private Equity in Fintech M&A!** 🚀 Despite the market's muted tone, the recent analysis from S&P Global Insights shows that private equity is getting creative to combat challenges. The total value of fintech M&A deals had seen a dip last year, with $29.92 billion in 2023 down from $37.56 billion in 2022. However, the creativity in deal structuring has been inspiring. As private equity firms face elongated holding periods due to sluggish M&A and IPO activities, they are not sitting back. Instead, they are adopting innovative financing structures like structured equity and continuation funds. This allows them to extend investment horizons without having to sell their high-performing assets prematurely. Take, for example, the strategic moves by BV Investment Partners with their continuation fund for Rightworks LLC. This creative restructuring ensures they maintain ownership while adapting to market conditions, setting a robust example for others in the industry. The flexibility offered by limited partners has been crucial, enabling private equity firms to hold onto assets longer or employ more innovative structures. This adaptability is likely to position them better for when the market rebounds. As we look forward to mid-year updates, there's a hopeful sentiment that with a stable macroeconomic environment and potential easing of interest rates, traditional M&A activities could see a resurgence. Stay tuned for more innovative deals that could redefine the landscape of fintech M&A! 733Park looks forward to future announcements.🌟 #PrivateEquity #Fintech #MnA #InvestmentTrends #CreativeFinancing #MarketInsights #mergersandacquisitions #payments

🥇 NEW: PitchBook’s latest Fintech & Payments M&A Report is out with new valuation research not done before. Link to the report is below. ⤵️ The heat came off the fintech buyout market in Q2. PE fintech buyouts decelerated to an estimated 12 deals in Q2, down 57% from Q1’s 28 buyouts, and down 37% from Q4’s 19 buyouts. Despite a soft Q2, buyouts in the past 12 months have been healthy, with an estimated 68 fintech deals compared with 2023’s 55, 2022’s 62, 2021’s 104, and 2020’s 72 buyouts. 🌤Lower rates would provide the first leg of a true PE revival, but adding a strong IPO & corporate M&A market would put us closer to 2021 levels. 🐳We expect more large fintech/payments buyouts, despite a lack of acceleration in the buyout count, as evidenced by (1) the acquisitions of Nuvei for $6.2 billion, Worldpay for $12.5 billion, and Coupa for $8.0 billion, (2) the presence of big PE such as Blackstone and Carlyle in the space, (3) and payments' strong revenue growth and margins. 🌊Using PitchBook’s proprietary PE take-private model we identified six publicly traded fintech/payments companies with the highest likelihood of being acquired by PE: nCino (7.7% takeout probability), AvidXchange (6.5%), Euronet Worldwide (5.3%), Corpay (4.7%), Remitly (4.4%), and BILL (4.2%). ☔️Corporate acquisitions remain subdued. Q2 saw 26 estimated corporate deals, compared with 26 in Q1 2024 and 25 in Q2 2023. We predict that corporate M&A will take two or more years to “come back” in full and will be driven by three factors: CEO confidence (heavily influenced by stock price); consistent economic/company operating performance; and FOMO - watching peers make acquisitions. 💵We examined the ratio of acquisition prices to employee head count (a proxy for revenue and profitability) from 2020 to Q2 2024 and payments companies logged the highest median valuation ratio at 1.61x, followed by financial services infrastructure at 1.40x, capital markets at 1.34x, CFO stack at 1.26x, wealthtech at 1.06x, regtech at 0.86x, and finally alternative lending at 0.86x. 🌎B2B (enterprise) payments also outperforms on exit value measures: We compared VC dollars invested in first-time financing rounds to eventual exit value to determine which subsectors generated strong returns for early investors. Enterprise payments led with a 2.1x ratio, followed by regtech at 1.6x, consumer payments at 1.55x, and financial services infrastructure at 1.06x. All other categories were below 1.0x. You can download the report here. https://lnkd.in/eYzBChuB

Wondering if tech capital markets really slow down in summer? 🌞 Dive into our latest analysis on deal trends, "new years" in tech M&A, and the surge in bridge financing. Read more: https://lnkd.in/eXCephAR Sign up for #FromTheFrontLines to receive monthly updates directly in your inbox: https://lnkd.in/eEWTfVmr #Bowen #BowenInsights #FTFL #Trendlines #growthtech #mergersandacquisitions #investmentbank #markettrends #techinvestment #summerslowdown #VC 

I suspect this will continue, at least for a while.... It's always interesting to see what #privateequity is up to vs. #venturecapital space. We do M & A (#mergersandacquisitions) work at Kairos Capital Legal Advisors but don't promote it and it's by referral only. It's strategic, rewarding work but we only want to work with specific, serious clients. ************************************************************************ "PE has its sights locked on middle-market fintech and payments buyouts for the growth, margins and stability. This has continued to fuel the comeback for enterprise fintech M&A in recent quarters. Our latest analyst note includes a deal-sourcing resource for middle-market firms. In Q1, companies offering industry-specific payments tools paired with workflow software flew off the shelves. As corporations plan for a soft landing, large corporate M&A has been on the rise. https://lnkd.in/eZCQGxyR

Let’s talk about exits in fintech. Although recent memory has been defined more by the lack of exits, we wanted to go back and look at the data from the most recent class of fintech exits to provide better context for founders and investors. The big takeaway: fintech as an industry has been defined by relatively consistent, large M&A transactions (approaching 20 per year) at an average value of $403M, and a few IPOs per year (2021 aside) at an average current market cap of $5.1B (as of March 2024). While it’s important to be ambitious and aim for those $1B+ outcomes, we also believe that founders and investors should take advantage of these unique M&A dynamics. For example, fintech represented about 1/3 of the top 100 IT software acquisitions. What does this mean? Practice valuation discipline. As companies approach $300M- $400M in company valuation, they risk (potentially unintentionally) getting cut off from the M&A market. Similarly, valuations over $2B should be for exceptional companies where the underlying fundamentals line up with public comps. The math around valuation can be the difference between a successful exit and one that is underwater. Fintech funds should not rely on IPOs alone to drive returns. This consistent and robust M&A cycle is a compelling aspect of the fintech market, and one where funds can get liquidity earlier for LPs. We expect the M&A path to become even more attractive to lean teams that don’t need to take on much outside capital, can grow efficiently, and achieve an outsized return. Much more is covered in the full report linked in the comments! And thanks to Axios for previewing the data in this Saturday’s newsletter. #venturecapital #fintech

🚨 M&A DEAL COVERAGE: Jefferies Pivotal in S&P Global’s Acquisition of Fintech Leader Visible Alpha 🌐 Jefferies, headquartered in New York, US, has expertly guided S&P Global in its strategic acquisition of Visible Alpha, a distinguished fintech company. This deal, valued at £500 million, significantly boosts S&P Global Market Intelligence's Capital IQ Pro platform. 📊 Adam Kansler, President of S&P Global Market Intelligence, highlights the acquisition's substantial benefits, enhancing service quality and offerings. Mark Hale, CEO of Visible Alpha, anticipates synergistic service improvements for the combined customer base. 🔗 Read the FULL article here: https://lnkd.in/ehMiQUuf ✅ ONLY £4.99 A MONTH FOR FULL ACCESS TO OUR WEBSITE (FIRST MONTH FREE): https://lnkd.in/eBHYx37M #investmentbanking #mergersandacquisitions #jefferies #advisory #fintech #spglobal #visiblealpha #marketintelligence #deals #strategy #growth

DASH completes acquisition of Integrated Portfolio Solutions, creating a whole-of-wealth platform #australianfintech #fintech #fintechnews #finance #financialtechnology #technology #tech #technews #acquisition #wealth #wealthmanagement