DRESHER, PA — Stone Point Capital and Genstar Capital will take equal ownership stakes in Ascensus under a new investment structure that brings Genstar back as an owner and gives the savings-services provider fresh capital to support expansion in technology, artificial intelligence and other capabilities.
The transaction is expected to close in the coming months, subject to customary regulatory approvals and closing conditions. Stone Point and Genstar will assume joint governance of Ascensus upon completion, while institutional investor GIC will retain an investment in the company.
Financial terms, including the size of the firms’ new investments and the valuation assigned to Ascensus, were not disclosed.
Ascensus will retain its existing leadership team, client relationships and service model. The company provides tax-advantaged savings technology and services to more than 16 million savers and had more than $1.3 trillion in assets under administration as of Aug. 3.
The ownership change reunites Ascensus with two investment firms that have previously backed the business. Stone Point, which specializes in financial services and related sectors, initially invested in Ascensus in 2021.
Genstar was a lead investor in Ascensus from 2015 through 2021. The private-equity firm invests across financial services, software, industrial and health care businesses.
“Against the backdrop of savings industry growth, Ascensus enters its next chapter with greater scale, broader capabilities,” Chief Executive Officer Nick Good stated. He identified technology, AI and client services among the areas targeted for continued investment.
Ascensus has also been expanding through acquisitions. Its previously disclosed purchase of AmericanTCS added trust and custody services, pooled employer plan capabilities and fiduciary services to the company’s platform.
Stone Point cited Ascensus’ scale and position in the savings market as factors behind its decision to invest additional capital.
“Our decision to reinvest in Ascensus reflects our strong conviction in the company and the opportunities ahead,” Fayez Muhtadie, co-head of private equity at Stone Point, stated.
Genstar Managing Partner Tony Salewski pointed to growth in the tax-advantaged savings market and Ascensus’ expansion since the firm’s previous ownership period. “We know Ascensus well from our first partnership, and the business has continued to outperform, adding scale and capabilities while demonstrating consistent execution,” he stated.
GIC originally invested in Ascensus in 2019 and will remain an investor alongside the two co-owners following the transaction.
J.P. Morgan Securities, BofA Securities and Wells Fargo advised Ascensus on the transaction, with Simpson Thacher & Bartlett serving as legal counsel.
Lazard advised Stone Point. Morgan Stanley and Goldman Sachs advised Genstar, with Willkie Farr & Gallagher serving as its legal counsel.
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