Genstar Capital and Aquiline Capital Partners are weighing a sale of retirement and college-savings provider Ascensus Inc., which could fetch more than $2 billion, according to people familiar with the matter.
The private equity firms have spoken to financial advisors about seeking potential suitors for Ascensus, which generates about $150 million in annual earnings before interest, taxes, depreciation and amortization, said one of the people, who asked to not be identified because the matter isn’t public.
The firms are in the early stage of exploring an exit and may not formally solicit offers until late summer, they said. No decision has been made and they could also opt to hold onto the company.
Representatives for Aquiline and Genstar declined to comment. Ascensus said in an emailed statement that the company is focused on serving its clients and is positioned for future success as a result of its technology platform, industry expertise and service model.
“We are not surprised that this has created opportunities for people to talk about Ascensus as a great investment opportunity,” according to the statement.
Private equity firms have been eager to buy retirement services providers, which are often ripe for technological innovation and poised to benefit from an aging population. The industry is also dense with small players, creating an opportunity to grow through acquisitions.