Parthenon Capital Partners is entertaining offers for portfolio company Millennium Trust Co, four sources said.
Millennium is not officially up for sale, the sources said. The 401(k) administrator has yet to hire a banker or launch a process, sources said.
Millennium is “premarketing and fishing around,” a private equity executive, one of the four sources, said. The company is expected to go on the block in 2019, the GP said.
“I’d be shocked if [Millennium] isn’t sold in the next 12 months,” another of the four said.
Founded in 2000, Millennium provides alternative custody solutions to institutions, advisers and individuals.
The company had 1 million client accounts under administration and $24.5 billion in total assets under custody as of July 11, the website said.
The Bancorp Inc in July agreed to transfer its rights and obligations as custodian and trustee of its Safe Harbor IRA account portfolio to Millennium for $65 million. The portfolio includes about 160,000 IRA accounts totaling more than $400 million in deposits.
Parthenon’s investment in Millennium dates to 2015 when it acquired a majority of the company. It invested $150 million, Buyouts reported.
The process was one of the most coveted at the time, with Millennium receiving more than 20 bids, Buyouts said. Firms including Lightyear Capital, Aquiline Capital Partners, LLR Partners and Lovell Minnick Partners made offers for Millennium.
Parthenon has been expected to sell Millennium ever since.
In fact, Millennium was seen selling earlier this year. Parthenon instead opted for a dividend recap, Buyouts said in January. PitchBook valued the transaction at $487.6 million.
Parthenon is investing out of its fifth flagship fund, which closed in 2016 at its $1 billion hard cap.
The San Francisco firm this year has invested in companies including Mid Atlantic Capital Group, Trinity Partners and RedCard Holdings. It also completed its sale of Cayan to TSYS for $1.05 billion in January.
A spokesman for Millennium Trust declined comment.
Action Item: Contact Gary Anetsberger, Millennium’s CEO, at +1 630-368-5600