Genstar, Stone Point Acquire Equal Stakes in Ascensus

Ascensus, a recordkeeper and retirement services firm, announced Tuesday that private equity firms Stone Point Capital and Genstar Capital are investing new capital and will hold equal stakes in the company. Ascensus will keep its current leadership team and service model.

Stone Point initially invested in Ascensus in 2021, and Genstar is returning as an owner, having previously been a lead investor in Ascensus from 2015 until 2021.

“Stone Point’s decision to continue as an owner paired with Genstar’s decision to return as an owner is a powerful endorsement of our long-term strategy, our people, and the strength of our business,” said Ascensus LLC CEO Nick Good in a statement. “Going forward, together with Stone Point and Genstar, we are well-positioned to continue investing in … capabilities that will fuel our long-term growth.”

GIC Private Ltd., Singapore’s sovereign wealth fund, which originally invested in Ascensus in 2019, will remain invested in the company as part of the transaction.

Genstar invests in multiple other companies in the retirement plan industry, including Cetera Financial Group, which it acquired in 2018, and Alera Group, Amerilife, Cerity Partners and Mercer Advisors.

“The market for tax-advantaged savings is underpinned by durable growth, and Ascensus is a scaled, independent player well positioned to capture that opportunity,” said Tony Salewski, managing partner in Genstar Capital LLC, in a statement. “Ascensus … has continued to outperform, adding scale and capabilities while demonstrating consistent execution.”

Stone Point’s current retirement-related investments include Focus Financial Partners, Kestra Holdings and OneDigital.

“Our decision to reinvest in Ascensus reflects our strong conviction in the company and the opportunities ahead,” said Fayez Muhtadie, Stone Point Capital LLC’s co-head of private equity, in a statement. “We have tremendous confidence in their ability to build on Ascensus’ leadership position.”

Nick Good became Ascensus’s new CEO in January, and Dan Morrison became its new president of retirement in April. In May, Ascensus acquired retirement services provider AmericanTCS Holdings, which added trust and custody, pooled employer plan and fiduciary capabilities. As of August 3, Ascensus supported more than 16 million savers and oversaw more than $1.3 trillion in assets under administration.

The transaction is expected to close in the coming months, subject to regulatory approvals.

Stone Point has more than $75 billion in assets under management across private equity, credit and insurance solutions. Genstar has approximately $51 billion of assets under management.