Investing

Activist Impactive Capital Seeks Board Seat at Envestnet

Fintel Staff

Published: November 16, 2022 3:03 am

Last Updated: November 16, 2022 12:28 pm

Fintel reports that Impactive Capital LP has filed a 13D/A form with the SEC disclosing ownership of 3,983,406 Envestnet Inc (ENV) shares. This represents 7.2% of the company.

In their previous filing dated May 24, 2022, they reported 3,480,418 shares and 6.30% of the company, an increase in shares of 14.45% and an increase in total ownership of 0.90% (calculated as current — previous percent ownership).

In a letter to the company contained in its latest 13D, Impactive called criticized what it called the company’s “well-below market returns over multiple periods relative to the S&P 500, S&P 400 and its closest peers, significant margin gap versus its closest peers, and egregious spending with seemingly no accountability for returns. Impactive highlights that despite the board delivering significantly submarket returns and collectively own less than 1% of the company, the board has nonetheless increased management’s compensation over the past five years. As such, Impactive seeks to add a shareholder representative to the board to better align pay for performance, refocus on capital allocation and protect and drive long term shareholder value.”

Envestnet, Inc. is transforming the way financial advice and wellness are delivered. Its mission is to empower advisers and financial service providers with innovative technology, solutions, and intelligence to make financial wellness a reality for everyone. Over 106,000 advisers 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. In its 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 87.61% over the last quarter.

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

Janus Henderson Group Plc holds 1,768,624 shares representing 3.20% ownership. In its prior filing, the firm reported owning 1,892,364 shares, representing a decrease of 7.00%. The firm decreased its portfolio allocation in ENV by 5.39% over the last quarter.

State Street Corp holds 1,711,264 shares representing 3.09% ownership of the company. In its prior filing, the firm reported owning 1,713,638 shares, representing a decrease of 0.14%. The firm decreased its portfolio allocation in ENV by 14.22% over the last quarter.

What is the overall institutional sentiment?

There are 600 funds or institutions reporting positions in Envestnet Inc. This is a decrease of 21 owner(s) or 3.38%.

Average portfolio weight of all funds dedicated to Envestnet Inc is 0.2178%, a decrease of 16.7418%. Total shares owned by institutions decreased in the last three months by 1.54% to 67,152,581 shares.

Based on this information, institutional sentiment is bearish.

This article originally appeared on Fintel