Investing

Impactive Capital Nominates Candidates for Election to Issuer's Board in Response to Poor Performance

Fintel reports that Impactive Capital LP has filed a 13D/A form with the SEC disclosing ownership of 4,151,033 shares of Envestnet Inc (ENV). This represents 7.5% of the company.

In their previous filing dated November 15, 2022 they reported 3,983,406 shares and 7.20% of the company, an increase in shares of 4.21% and an increase in total ownership of 0.30% (calculated as current – previous percent ownership).

In its filing, Impactive said its affiliate Impactive Capital Master Fund LP nominated a slate of highly qualified candidates, including Wendy E. Lane, Thomas C. Naratil, Michael J. Stanton, and Lauren Taylor Wolfe, for election to the board of the Issuer at its 2023 annual meeting.

Impactive has expressed concerns about Envestment’s poor operating performance, lack of shareholder alignment, poor board governance, and disingenuous shareholder engagement in a press release.

The candidates are; Wendy E. Lane, the Chair of Lane Holdings, a private equity investment company, and has served on the boards of various public companies. Thomas C. Naratil is a former member of the Group Executive Board of UBS Group AG. He held various executive positions, including President Americas and Co-President of Global Wealth Management. Michael J. Stanton is the CEO of Zumobi, Inc., a software as a service company, and has previously held senior leadership roles at Amazon, Google, and Oracle. Lauren Taylor Wolfe is a founding partner of New Rise Partners, a private equity firm, and has served as a Senior Advisor to the Blackstone Group.

Envestnet, Inc. is transforming the way financial advice and wellness are delivered. Its mission is to empower advisors and financial service providers with innovative technology, solutions, and intelligence to make financial health a reality for everyone. Over 106,000 advisors across more than 5,100 companies-including, including 17 of the 20 largest U.S. banks, 47 of the 50 largest wealth management and brokerage firms, over 500 of the largest RIAs, and hundreds of FinTech companies-leverage the Envestnet platform to grow their businesses and client relationships.

What are other large shareholders doing?

JPMorgan Chase & Co holds 2,749,877 shares representing 4.97% ownership of the company. In it’s prior filing, the firm reported owning 2,723,567 shares, representing an increase of 0.96%. The firm decreased its portfolio allocation in ENV by 12.43% over the last quarter.

Advent International Corp/ma holds 1,881,239 shares representing 3.40% ownership of the company. No change in the last quarter.

Janus Henderson Group Plc holds 1,524,450 shares representing 2.76% ownership of the company. In it’s prior filing, the firm reported owning 1,768,624 shares, representing a decrease of 16.02%. The firm decreased its portfolio allocation in ENV by 21.26% over the last quarter.

Echo Street Capital Management LLC holds 1,503,759 shares representing 2.72% ownership of the company. In it’s prior filing, the firm reported owning 1,426,849 shares, representing an increase of 5.11%. The firm decreased its portfolio allocation in ENV by 6.34% over the last quarter.

What is the overall Fund Sentiment?

There are 577 funds or institutions reporting positions in Envestnet Inc. This is a decrease of 46 owner(s) or 7.38%.

Average portfolio weight of all funds dedicated to Envestnet Inc is 0.2120%, a decrease of 8.6744%. Total shares owned by institutions increased in the last three months by 0.30% to 67,209,771 shares.

Fintel’s Fund Sentiment Score is a quantitative model that ranks companies from zero to 100 based on Fund Sentiment. Fund Sentiment is important because it tells you if funds are buying or selling – and in particular how the company ranks compared to other companies in the investing universe. Click to see the Fintel Fund Sentiment Score for ENV / Envestnet Inc.

This article originally appeared on Fintel

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