Atlas Merchant Capital is acquiring a 25% ownership stake in Ascensus, a defined contribution record keeper and third-party administrator, Ascensus announced Tuesday.
The transaction is expected to close in the first quarter, a statement said. Terms of the deal were not disclosed.
Genstar Capital and Aquiline Capital Partners, both private equity firms, also have stakes in Ascensus. The Atlas investor group includes GIC, Singapore's sovereign wealth fund.
"We're extremely pleased that the Atlas investor group has chosen to invest in Ascensus," Bob Guillocheau, Ascensus chairman and CEO, said in a statement. "We're also grateful to have the continued support of our owners Aquiline and Genstar as we continue to focus on delivering exceptional service to our clients and boost our future growth."
David Schamis, founding partner and CIO of Atlas and previous chairman of Ascensus, praised Ascensus' "robust technology platform, industry-leading expertise and unparalleled service model" and expressed confidence in the company's management and future growth.
Ascensus, which concentrates on 529 college plans and health savings accounts, had more than $186 billion in assets under administration as of Dec. 31. It has acquired more than a dozen TPA firms last year as well as two trust businesses.