Details Serious concerns about Envestnet’s continued substantial share price and poor operational performance, lack of shareholder alignment and poor board governance

Baffled by the Board’s refusal to appoint a single shareholder representative to the Board, despite Impactive’s strong involvement and significant collaborative effort over the past 18 months

Troubled by overspending with no justification for ROI and declining profitability as management and board payouts soar

May seek further board rotation at 2023 AGM

NEW YORK, Nov. 15, 2022 (GLOBE NEWSWIRE) — Impactive Capital, LP, along with its affiliates, is one of the largest shareholders of Envestnet, Inc. (NYSE: ENV) (“Envestnet” or the “Company”), with an ownership interest of approximately 7.2% addressed an open letter to the Company’s board of directors (the “Board of Directors”) today.

In its letter, Impactive details Envestnet’s well-below-market returns over multiple time periods compared to the S&P 500, S&P 400 and its closest peers, the significant margin gap compared to its closest peers, and prodigious spending with seemingly no accountability for returns. Impactive notes that the board has increased management pay over the past five years despite delivering well below market returns and collectively owning less than 1% of the company. As such, Impactive is seeking to add a shareholder representative to the board to better align pay with performance, refocus on capital allocation, and protect and enhance long-term shareholder value.

The full text of the letter is reproduced below:

November 15, 2022

The Board of Directors – Envestnet, Inc.
1000 Chesterbrook Blvd, Suite 250
Berwyn, Pennsylvania 19312
Attn: James Fox and William Crager

Dear board members,

Impactive Capital, LP (collectively with its affiliates, “Impactive” or “we”) has been a long-term investor in Envestnet, Inc. (“Envestnet” or the “Company”) and is currently a…