Impactive Capital, which holds a 7.5% stake in Envestnet, nominated two men and two women, including its co-founder Lauren Taylor Wolfe, to Envestnet's board.
Impactive Capital said it unveiled the challenge to Envestnet after its attempt to negotiate just one spot on the company's board for Wolfe was unsuccessful.
In its statement, Impactive Capital cited poor profit margins and bad capital allocation among the reasons for Envestnet's underperformance.
It also said Envestnet's management and board directors were overpaid and that the company should improve its corporate governance by putting all of its directors up for election every year.
Impactive Capital, which was founded by Taylor Wolfe and Christian Asmar, oversees $2.7 billion in assets.