Exclusive report – Sources say Blackstone and Warburg are considering selling IntraFi for over $10 billions.

Echo Wang/Milana Vinn

Reuters New York, October 20 - According to sources familiar with the matter, Blackstone Inc BX.N and Warburg Pincus are considering selling IntraFi, a deal that could value the fintech company at more than $10 billion.

These sources, who requested anonymity because the discussions are private, said the private equity firms have hired Morgan Stanley MS.N and Guggenheim Securities to advise IntraFi on the sale process, which is still at an early stage.

The sources added that no final decisions have been made, and Blackstone and Warburg may decide to keep the business.

Blackstone and IntraFi (link) both declined to comment. Guggenheim, Morgan Stanley, and Warburg Pincus have not immediately responded to requests for comment.

Arlington, Virginia-based IntraFi operates what it describes as the United States' largest reciprocal deposit network, helping banks distribute customer funds across multiple banks to provide federal deposit insurance for balances above $250,000.

The company's network also enables banks to buy and sell deposits. Banks with excess deposits can sell them to banks in need of funding, and IntraFi earns a fee from these transactions.

In 2023, the collapse of Silicon Valley Bank (link) increased customer caution in selecting where to store their funds, intensifying the competition among banks for deposits.

IntraFi was founded in 2002 by three former bank regulators and was acquired by Blackstone in 2019 from a group of investors including Bank of New York Mellon (BNY.N), when it was known as Promontory Interfinancial Network. Warburg Pincus invested in the company in 2022. According to sources, IntraFi's annual EBITDA is $630 million.

This sale comes as private equity firms are seeking to take advantage of an improving deal environment. Warburg Pincus recently agreed to sell McGill and Partners as well as WildFire Energy (link), while Blackstone this month (link) also agreed to sell Clarion Events to Informa for about £2.2 billion.

According to Bloomberg News in 2024, the two firms previously explored a sale of IntraFi.

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