(Bloomberg) -- Blackstone Inc. and Warburg Pincus are in the early stages of weighing strategic options including a sale of IntraFi, a fintech that helps people secure their bank deposits, according to people familiar with the matter.
The alternative-asset managers have begun talking to investment banks about soliciting interest in IntraFi — which could fetch $12 billion or more in any transaction — in early 2025, the people said, asking not to be identified discussing non-public information. The company could appeal to large financial technology firms such as exchanges, the people said. IntraFi may also be a candidate for an initial public offering, one of the people said.
No final decision has been made and Blackstone and Warburg could opt to hold onto the business, the people added. Representatives for Blackstone, Warburg and IntraFi declined to comment.
IntraFi, founded in 2002, runs a marketplace used by more than 3,000 financial institutions — including a sizable number of US banks — that helps consumers, businesses, investors and other clients protect their deposits from a potential bank run. Its business model hinges on the fact that the Federal Deposit Insurance Corp. protects deposits of as much as $250,000 — but any more than that could be lost if a bank goes under. IntraFi collects a fee by helping depositors spread their money around to different institutions, ensuring that they have no more than $250,000 at any one bank.
IntraFi, the largest provider of this type of service in the US, saw its revenue soar in 2023 following the collapse of a handful of regional banks, according to Semafor.
Blackstone acquired the business in 2019 from backers including Bank of New York Mellon Corp., when it was called Promontory Interfinancial Network. Warburg invested in the company in 2022.
IntraFi has about $2.6 billion in debt, according to data compiled by Bloomberg.
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