Stone Point Capital and GIC to acquire Ascensus

Stone Point Capital and GIC have agreed to acquire Dresher, Pennsylvania-based Ascensus, a financial services company.

Stone Point Capital and GIC have agreed to acquire Dresher, Pennsylvania-based Ascensus, a financial services company. The seller is a private equity consortium led by Genstar Capital, Aquiline Capital Partners and Atlas Merchant Capital. Moving forward, Genstar Capital and Aquiline Capital Partners will maintain a minority stake in Ascensus. The deal is expected to close in the third quarter of this year.

PRESS RELEASE

DRESHER, Pa., April 26, 2021 /PRNewswire/ — Ascensus announced today that funds managed by Stone Point Capital, the Greenwich, CT-based private equity firm specializing in financial services, along with GIC, Singapore’s sovereign wealth fund, have entered into a definitive agreement to acquire Ascensus from its current private equity ownership group led by Genstar Capital, Aquiline Capital Partners, and Atlas Merchant Capital. 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.

Now in its 41st year of operations, Ascensus is a technology-enabled services company that helps millions of people save for retirement, education, and healthcare. It is also the leading independent recordkeeping services partner, retirement plan third-party administrator, and government savings facilitator in the United States. Through the company’s network of institutional, financial advisor, and state partners, Ascensus supports more than 12 million savers through a variety of tax-advantaged retirement, education, and consumer-directed health savings accounts.

“We are delighted to partner with Stone Point Capital and GIC, who share our confidence in the strategic importance and growth potential of the retirement, education, and health savings markets,” said David Musto, president and CEO of Ascensus. “Their commitment will only strengthen our ability to continue investing in new capabilities, technology, and solutions; enhance our already world-class client service levels; and attract top talent to our organization.”

Musto added, “We thank Genstar Capital, Aquiline Capital Partners, and Atlas Merchant Capital for their support throughout our long relationship, which helped us become the leader we are today in the markets we serve.”
“We have followed Ascensus’ success for some time and see tremendous opportunities for further growth and positive impact on the industry,” said Chuck Davis, CEO of Stone Point Capital. “We believe Ascensus is a true leader in providing technology, expertise, and partnership to enable savings across the critical areas of retirement, education, and healthcare. We look forward to partnering with their management team and talented associates to support their continued growth, solutions innovation, and strong service delivery.”

Yong Cheen Choo, GIC’s chief investment officer of private equity, said, “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.”

“Our journey with Ascensus and their management team over the last five years has been both remarkable and rewarding,” said Tony Salewski, managing director of Genstar.

Jeff Greenberg, chairman and CEO of Aquiline Capital Partners added, “We are very pleased Ascensus has become a market-leading savings business, having grown both organically and through acquisitions under our ownership. The company is well led and in a strong position to achieve its next phase of development over the coming years.”

“It has been an honor to be an investor in Ascensus twice in my career,” said David Schamis, founding partner and chief investment officer of Atlas Merchant Capital LLC. “Ascensus combines a strong market position with a highly skilled and shareholder value-focused management team. I am eager to continue to watch them flourish.”

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.

About Ascensus
Ascensus helps millions of people save for what matters—retirement, education, and healthcare. Through co-branded, private-labeled, and other governmental partnerships, our technology, market insights, and business knowledge enhance the growth and success of our partners, their clients, and savers. Ascensus is the largest independent recordkeeping services provider, retirement plan third-party administrator, and government savings facilitator in the United States. For more information, visit ascensus.com.