GIC and Stone Point Capital Buy Majority Stake in Ascensus

Posted on 04/26/2021


Funds managed by Stone Point Capital LLC and Singapore’s GIC Private Limited have entered into a definitive agreement to acquire Ascensus LLC from its current private equity ownership group led by Genstar Capital LLC, Aquiline Capital Partners LLC, and Atlas Merchant Capital LLC. Genstar Capital and Aquiline Capital Partners will maintain a minority stake in Ascensus. The transaction is expected to close in the third quarter of 2021, following regulatory approvals and other customary closing conditions. Terms of the transaction were not disclosed. Some figures include a US$ 3 billion valuation for the company.

Ascensus is a technology-enabled services company that helps millions of people save for retirement, education, and healthcare. It is also an independent recordkeeping services partner, retirement plan third-party administrator, and government savings facilitator in the United States.

Yong Cheen Choo, GIC’s chief investment officer of private equity, said in a press release, “Ascensus is delivering industry-leading solutions to help people save for what matters most. As a long-term investor, we believe Ascensus’ unique technology, market insights, and business knowledge will continue to drive growth and innovation in this space. We are thrilled to grow our years-long partnership through this increased investment, and look forward to working with Ascensus’ impressive management team over the long term.”

Advisors

Barclays and Goldman Sachs & Co. LLC acted as co-financial advisors to Ascensus in connection with this transaction. J.P. Morgan Securities LLC acted as sole financial advisor to Stone Point Capital. Willkie Farr & Gallagher LLP acted as legal counsel to Ascensus. Simpson Thacher & Bartlett LLP acted as transactional counsel to Stone Point Capital. Kirkland & Ellis LLP acted as financing counsel to Stone Point Capital.

Ascensus was founded in 1980. In the fourth quarter of 2015, the company was acquired by Genstar Capital and Aquiline Capital Partners from J.C. Flowers & Co. In August 2018, Ascensus announced it would administer California’s retirement savings program, CalSavers.

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