New York (HedgeCo.net) Genstar Capital, a San Francisco-based middle-market private equity firm, and Aquiline Capital Partners, a New York-based private equity firm investing in financial services, announced today that they have entered into a definitive agreement to acquire Ascensus, Inc. from J.C. Flowers & Co., a leading private investment firm dedicated to investing globally in the financial services industry. The transaction is expected to close in the fourth quarter, following regulatory approvals and other customary closing conditions. Terms of the transaction were not disclosed.
Ascensus, the nation’s largest independent service provider of retirement and college savings plans, was founded more than 30 years ago and has since expanded into new markets within the financial services industry to offer a comprehensive suite of defined contribution and defined benefit retirement plan solutions, benefits education, 529 college savings plan recordkeeping, and IRA and health savings account administration. Throughout its history, the company’s mission has remained the same—to help Americans save for the future by connecting them to the right plans.
Today, through the company’s network of strategic business partners and financial professionals, Ascensus supports more than 1.7 million retirement plan participants and administers more than 3.3 million 529 college savings accounts, along with more than 1.5 million IRAs and HSAs.
“We are excited that Genstar Capital and Aquiline Capital Partners share our conviction that the retirement, college, and health savings industries will continue to be significant and growing markets for Ascensus,” said Bob Guillocheau, president and chief executive officer of Ascensus. “Their commitment to Ascensus will strengthen our capabilities and services, allowing us to maintain our long-term focuses on serving our clients’ needs and remaining a top workplace for our associates. I would also like to thank J.C. Flowers for their support of our company’s growth over the last eight years.”
This is the second acquisition on which Genstar and Aquiline have partnered, having developed a relationship based on a shared philosophy of supporting strong management teams to create value and drive next-level growth.
“Ascensus is a leading service provider to the large and growing markets for retirement and college savings accounts,” said Jeff Greenberg, chief executive of Aquiline. “It has a strong brand, experienced management team, and impressive track record of success through multiple business cycles. We look forward to working with Bob and his team, providing them with support and resources to continue to build the company and expand its reach in its core markets.”
Tony Salewski, managing director of Genstar, said, “We are very excited to partner with the leadership team of Ascensus, headed by Bob Guillocheau. Ascensus fits squarely within our approach of investing in leading businesses that provide critical tools and services to the investment management industry. This acquisition highlights our continued focus on the financial services vertical. Ascensus has built a strong platform, and we look forward to working with them to invest in organic and inorganic growth initiatives.”
