Stone Point Capital is putting Black Mountain Systems up for sale after four years, two sources said.
Jefferies is advising on the process, the people said.
Black Mountain develops data and process management software for asset managers and financial institutions including banks, hedge funds, private equity and investment managers. Customers include Bain Capital, Barrings, Carlyle Group and KKR, the firm’s website shows. In January, Black Mountain acquired Mariana Systems.
Black Mountain is expected to fetch more than $500 million, one of the people said.
The sale comes a little over a month since Bridgepoint agreed to sell eFront, which provides software for the alternative-investments industry, to BlackRock. The deal was valued at about $1.5 billion. Bridgepoint, a U.K. PE firm, stands to make 4.8x its money with the sale, Buyouts reported in March.
(Bridgepoint also owns PEI Media, which in April acquired Buyouts, publisher of this report.)
Black Mountain “saw eFront get the price they got and hit the market,” the source said.
Loan-market professionals founded Black Mountain, of San Diego, in 2007. In March 2015, Stone Point and Hamilton Lane acquired a majority of the company. The deal was valued at $125 million, PitchBook said.
Stone Point invests in sectors including financial services, health services, asset management and outsourcing and technology. The firm is investing out of Trident VII, which closed on $5.5 billion in 2017.
Stone Point’s prior fund, Trident VI, raised $4.5 billion in 2014. In February, Stone Point sold Kestra Financial to Warburg Pincus.
Hamilton Lane, Bala Cynwyd, Pennsylvania, is an alternative-investment manager with $469 billion in total assets under management and supervision as of Dec. 31.
Jefferies declined comment. Executives for Stone Point, Black Mountain and Hamilton Lane could not immediately be reached for comment.
Action Item: Read Private Debt Investors’ 2018 interview with Kevin MacDonald, Black Mountain’s co-CEO.