Press Release

Ascensus to Be Acquired by Stone Point Capital and GIC from Private-Equity Consortium

Issued by Ascensus

Apr. 26, 2021

DRESHER, Pa., April 26, 2021  -- 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.

Get the latest trends and insights based on our proprietary data from more than 113,700 retirement plans, 6.0 million 529 accounts, 426,500 health savings accounts, and 23 ABLE plans.* Inside America's Savings Plans highlights average savings levels across these tax-advantaged accounts and showcases plan features that drive participation and growth.

*As of December 31, 2020.

About Stone Point Capital LLC
Stone Point is an investment firm based in Greenwich, CT, with approximately $30 billion of assets under management. Stone Point targets investments in companies in the global financial services industry and related sectors. The firm invests in a number of alternative asset classes, including private equity through its flagship Trident Funds. Stone Point also manages both liquid and private credit funds and managed accounts. In addition, Stone Point Capital Markets supports our firm, portfolio companies and other clients by providing dedicated financing solutions. For more information, please visit www.stonepoint.com.

About GIC
GIC is a leading global investment firm, established in 1981, to strengthen Singapore's financial future by managing its foreign reserves. As a disciplined long-term value investor, we engage across a wide range of asset classes in over 40 countries. Headquartered in Singapore, we have a strong global talent force of over 1,700 people positioned in 10 key financial cities. For more information on GIC, please visit www.gic.com.sg or LinkedIn.

About Aquiline Capital Partners LLC
Aquiline Capital Partners, founded in 2005, is a private equity firm based in New York and London investing in businesses across the financial services sector in banking and credit, insurance, investment management, and financial technology and services. The firm had $6.1 billion in assets under management as of December 31, 2020. For more information about Aquiline, its investment professionals, and its portfolio companies, please visit: www.aquiline.com.

About Genstar Capital LLC
Genstar Capital (www.gencap.com) is a leading private equity firm that has been actively investing in high quality companies for over 30 years. Based in San Francisco, Genstar works in partnership with its management teams and its network of strategic advisors to transform its portfolio companies into industry-leading businesses. Together with Genstar X and all active funds, Genstar currently has approximately $33 billion of assets under management and targets investments focused on targeted segments of the financial services, healthcare, industrials and software industries.

About Atlas Merchant Capital LLC
Atlas Merchant Capital LLC was founded to participate in compelling market opportunities in the financial services sector. Based in New York and London, Atlas Merchant Capital was founded by Bob Diamond and David Schamis, who together with their partners form a complementary partnership with extensive operating and investing expertise across the financial services landscape. For more information about Atlas Merchant Capital, please visit www.atlasmerchantcapital.com.

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