Blackstone and Warburg Pincus are exploring a sale of IntraFi, a Virginia-based financial technology company that runs a deposit network for banks, at a valuation of more than US$10 billion, according to people familiar with the matter.

Morgan Stanley and Guggenheim Securities are advising on the early-stage process. No final decision has been made, and the private equity firms could keep the business, the sources said.

IntraFi helps banks spread customer funds across multiple institutions so balances above US$250,000 can qualify for federal deposit insurance, subject to coverage limits at each bank. It also lets banks buy and sell deposits.

The company, formerly Promontory Interfinancial Network, rebranded as IntraFi Network. Blackstone acquired the company in 2019, and Warburg invested in 2022. Sources said IntraFi generates US$630 million in annual EBITDA.

Section 29 of the Federal Deposit Insurance Act governs brokered deposits. A 2018 Federal Deposit Insurance Corporation rule excludes certain reciprocal deposits from that classification for qualifying banks, subject to caps.

🔗 Source: Reuters