U.S. Software Provider Enfusion Explores Potential Sale Amid Interest from Private Equity Firms

Enfusion, a Chicago-based software provider for asset managers, is evaluating its options, including a potential sale. The company, valued at $1.1 billion, is in discussions with investment bankers after receiving interest from private equity firms. Enfusion provides cloud-based portfolio management systems and has faced revenue challenges, with its stock underperforming since its 2021 IPO.

Enfusion, a software provider for asset managers based in Chicago, Illinois, is reportedly considering a potential sale, according to sources familiar with the situation. The company, which boasts a market value of $1.1 billion, has engaged in discussions with investment bankers following interest from private equity firms.

Enfusion, known for its cloud-based portfolio management and risk systems, primarily serves hedge funds. Despite this, the company has struggled to expand its revenue streams significantly and has underperformed in the stock market since its initial public offering in 2021. The company's shares have dropped by over 50% since their debut.

Additionally, Enfusion's most recent quarterly report revealed a 16% year-on-year revenue increase to $49.5 million, which did not meet market expectations. Major stakeholders in Enfusion include FTV Management Company and ICONIQ Capital, which together own about half of the company. Earlier this year, Spruce Point Management took a short position in Enfusion, questioning the quality of its software and the accuracy of its revenue statements.

(With inputs from agencies.)