PE HUB Wire Highlights, 6.5.19


Photo of Luisa Beltran, PE HUB Senior Editor, courtesy of Buyouts Insider.

Insurity, backed by GA, TA and Genstar, goes up for sale; Diversis raises debut fund in six months after six years of deal-by-deal; Leon Black regrets taking Apollo public

How many deals?”

URPC is the 29th deal for Ascensus since November 2016,” said Raghav Nandagopal, executive vice president, corporate development & M&A at Ascensus.

Nandagopal, who spoke to me by phone, could barely hide his excitement. United Retirement Plan Consultants, of Dublin, Ohio, is a third-party administration firm that administers around 8,000 plans. It employs roughly 200 associates spread through 10 locations, he said. Stonehenge Partners was the seller.

Rollups are very common in private equity. The strategy is used frequently in healthcare and in insurance. Ascensus, Nandagopal said, has been doing a deal a month since it was sold to Genstar Capital and Aquiline Capital Partners over three years ago. So far this year, Ascensus has completed four acquisitions including URPC, Pension Strategies in May and Wrangle in March. The company is signing another deal in the next few weeks, he said.

Founded in 1980, Ascensus is a retirement and college savings services provider. The Dresher, Pennsylvania company is currently the biggest third party administrator with more than $230 billion of assets under administration, Nandagopal said. It employs more than 3,100 employees nationally. Ascensus’s strategy is simple; buy the best companies in the U.S. while also driving organic growth. Ascensus will remain active in healthcare, where it provides technology and services for HSA and FSA accounts, as well as computer benefits and retiree billing, Nandagopal said.

Ascensus has barely missed a beat since selling a roughly 25 percent stake to a consortium led by Atlas Merchant Capital LLC and including GIC earlier this year. “We think there is a tremendous opportunity in retirement, healthcare and the government marketplace,” Nandagopal said.

Going public: Hindsight can be tough. When I look back, I wish I hadn’t eaten so many cookies yesterday, I regret what I didn’t say to my brother last week and don’t get me started on what I did last weekend.

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