According to sources cited by Zhihui Finance APP, Blackstone Group (BX.US) and Warburg Pincus are exploring the sale of IntraFi, in a deal that could value the fintech company at more than $10 billion. The sources said the two private equity firms have hired Morgan Stanley and Guggenheim Securities to provide advisory services to IntraFi for the sale process, which is currently in its early stages. The sources added that no final decision has been made, and Blackstone and Warburg Pincus may also decide to retain the business.
Headquartered in Arlington, Virginia, IntraFi operates what it claims is the largest reciprocal deposit network in the U.S., helping banks distribute client funds across multiple institutions to provide federal deposit insurance for balances exceeding $250,000.
The company’s network also enables banks to buy and sell deposits. Banks with excess deposits can sell them to those needing funds, with IntraFi charging fees on such transactions. Following the collapse of Silicon Valley Bank in 2023, clients have become increasingly selective about where they keep their funds, intensifying competition among banks for deposits.
IntraFi was founded in 2002 by three former bank regulators and was acquired by Blackstone from a group of investors in 2019, when the company was known as Promontory Interfinancial Network. Those investors included BNY Mellon (BNY.US). Warburg Pincus invested in the company in 2022. According to sources, IntraFi’s annual EBITDA is $630 million.
This sale process comes as private equity firms seek to capitalize on an improving deal-making environment. Warburg Pincus recently agreed to sell McGill and Partners and WildFire Energy; earlier this month, Blackstone agreed to sell Clarion Events to Informa for about £2.2 billion.