Stone Point, Genstar Take Equal Stakes in Ascensus
Stone Point Capital and Genstar Capital will become equal owners of Ascensus under a new capital structure supporting further investment in technology, artificial intelligence and client services.
Both private equity firms are contributing new capital, although the size of their investments and Ascensus’ valuation were not disclosed. Singapore sovereign wealth fund GIC will retain an interest, while Stone Point and Genstar will assume joint governance after the transaction closes.
Ascensus said its current management, client relationships and service model will remain in place. The transaction is expected to close in the coming months, subject to regulatory approvals and customary conditions.
Dresher, Pennsylvania-based Ascensus provides recordkeeping, administration and technology for retirement, education and health savings programs. The company supported more than 16 million savers and oversaw over $1.3 trillion in assets under administration as of Aug. 3.
“Against the backdrop of savings industry growth, Ascensus enters its next chapter with greater scale, broader capabilities and significant opportunities to create value,” CEO Nick Good said.
Stone Point initially invested in Ascensus in 2021, when it and GIC acquired the company from a private equity consortium led by Genstar, Aquiline Capital Partners and Atlas Merchant Capital. Genstar, which served as a lead investor from 2015 through 2021, is now returning as a co-owner.
The ownership change follows Ascensus’ Aug. 5 completion of its acquisition of AmericanTCS. That transaction added trust and custody services, pooled employer plan capabilities and fiduciary support, along with technology products including PensionPro, Hub+ and ERISApedia, according to Ascensus.
J.P. Morgan Securities LLC, BofA Securities, and Wells Fargo served as financial advisors and Simpson Thacher & Bartlett LLP served as legal counsel to Ascensus. Lazard Frères & Co. LLC served as buyside financial advisor to Stone Point. Morgan Stanley & Co. LLC and Goldman Sachs & Co. LLC served as buyside financial advisors and Willkie Farr & Gallagher LLP served as legal counsel to Genstar.
