Blackstone and Warburg Pincus are exploring a sale of US financial technology company IntraFi that could value the business at more than $10bn, according to a report by Reuters.
The firms have reportedly appointed Morgan Stanley and Guggenheim Securities to advise on a potential transaction, although the process remains at an early stage and the owners could ultimately decide to retain the business.
IntraFi, based in Arlington, Virginia, operates one of the largest reciprocal deposit networks in the US, enabling banks to distribute customer deposits across multiple institutions to provide federal deposit insurance coverage beyond the standard $250,000 limit.
The platform also allows banks to trade deposits, generating transaction fees by connecting institutions with surplus deposits to those seeking additional funding.
IntraFi generates approximately $630m in annual EBITDA, according to Reuters’ sources.
Blackstone acquired the company, formerly known as Promontory Interfinancial Network, in 2019 from investors including Bank of New York Mellon. Warburg Pincus subsequently invested in the business in 2022.
The potential disposal comes as private equity firms seek to capitalise on improving exit conditions. Warburg Pincus recently agreed to sell insurance broker McGill and Partners and energy producer WildFire Energy, while Blackstone agreed earlier this month to sell Clarion Events to Informa for approximately £2.2bn.
