Singapore’s sovereign wealth fund GIC and US-based private equity firm Stone Point Capital will acquire recordkeeper Ascensus.
The investors are taking a majority stake in the Dresher, Pennsylvania-based financial services firm, Ascensus said Monday.
They’re acquiring Ascensus from its current private equity owners, led by Genstar Capital, Aquiline Capital Partners, and Atlas Merchant Capital. Both Genstar and Aquiline will maintain a minority stake in Ascensus.
An Ascensus representative declined to disclose the terms of the transaction. But Bloomberg has previously reported that the deal would be worth nearly $3 billion, citing people familiar with the matter. The acquisition is expected to close in the third quarter of this year.
Investors are betting on the “further growth” of the financial services firm, which is expected to benefit from ongoing digital disruption that is poised to remake the savings industry for aging societies.
Ascensus supports tax-advantaged retirement, education, and health savings accounts (HSAs) for more than 12 million savers. As of December, the company had $373.6 billion in assets under advisement (AUA).
“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,” GIC Private Equity CIO Yong Cheen Choo said in a statement. “We are thrilled to grow our yearslong partnership through this increased investment, and look forward to working with Ascensus’ impressive management team over the long term.”
GIC is one of the largest global investors in the private markets. About 11% to 15% of GIC’s long-term portfolio is devoted to private equity.
Going into this year, the Singapore sovereign wealth fund had said it would maintain a cautious investment philosophy, expecting continued high market valuations. It also said it expected to continue taking equity stakes in fintech, health-tech, and enterprise software companies.
Ascensus President and CEO David Musto said the capital infusion and new ownership structure would expand capabilities and technology at Ascensus, as well as help attract top talent to the firm.
Last year, the financial technology firm expanded its digital capabilities, including by launching a retirement mobile app and offering a plan proposal platform for financial advisers and retirement clients.
Representatives for Stone Point Capital did not immediately respond to requests for comment. GIC said the firm typically doesn’t comment on investments.
Barclays and Goldman Sachs jointly advised Ascensus on the transaction.