Stone Point, GIC said to be near $4b deal for Ascensus

NEW YORK • Investment firm Stone Point Capital and Singapore fund GIC are nearing a deal to buy retirement and savings account provider Ascensus for about US$3 billion (S$4 billion), according to people familiar with the matter.

A transaction for the company may be announced as soon as this week, said the people, who asked not to be identified because the matter is not public.

Owned by Genstar Capital and Aquiline Capital Partners, Ascensus had been considering an initial public offering but moved towards a sale after getting strong interest from potential buyers, one of the people said.

No final decision has been made and talks could still fall through, they said.

Representatives for Stone Point, GIC, Genstar, Aquiline and Ascensus did not immediately respond to requests for comment.

Investors have eagerly snapped up retirement services providers in recent years, as they are ripe for technological innovation and poised to benefit from an ageing population. The industry also has a lot of small players, creating an opportunity to grow through acquisitions.

Genstar and Aquiline agreed to acquire Pennsylvania-based Ascensus from J.C. Flowers & Co in a 2015 deal that people familiar with the matter said at the time was worth about US$750 million.

Stone Point is a private equity firm with offices in Greenwich, Connecticut, and New York that focuses on investments in the financial services industry, according to its website. GIC is Singapore's sovereign wealth fund.

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A version of this article appeared in the print edition of The Straits Times on April 27, 2021, with the headline 'Stone Point, GIC said to be near $4b deal for Ascensus'. Subscribe