Carlyle has engaged bankers to consider selling its UK-based funds network and data company, Calastone, in what could be the latest high-profile transaction in a sector that has drawn significant investment, according to a report by Reuters citing four sources familiar with the matter.
The US private equity firm is collaborating with Barclays to explore a potential sale of the London-headquartered company, which serves as a marketplace for trading and settling investment funds, leveraging blockchain technology, the sources said. Calastone also offers insights into fund flows.
The process is still in its preliminary stages, with Carlyle anticipated to launch an auction process before the summer, two sources noted.
The sale could value Calastone at over 20 times its EBITDA, potentially exceeding £600m ($731.52m), based on comparable transactions in the fintech and data industries, one source added. However, a deal is not guaranteed.
According to three sources, Calastone is likely to draw interest from global exchange operators, market infrastructure firms, and private equity investors.
This potential sale would add to a growing trend of acquisitions targeting specialised financial technology and data companies that serve banks, asset managers, and investment groups, often fetching high valuations. For instance, BlackRock acquired Preqin last year for £2.55bn.
Calastone serves a global clientele of 4,000 fund distributors and managers across 57 countries, processing £270bn in monthly investment transactions, according to its website. The company utilises blockchain and other technologies to automate traditionally manual processes, such as order routing, settlement, and transaction reporting, addressing inefficiencies and rising costs for asset and fund managers.
Carlyle, which manages $447bn in assets, acquired Calastone in 2020 from venture capital firms Octopus Ventures and Accel for an undisclosed amount. The company’s management, led by CEO Julien Hammerson, retains a minority stake.
In 2023, Calastone reported revenues of £68.3m, an increase from £60.3m in 2022, as per Companies House filings.
