Blackstone and Warburg Pincus are exploring a sale of IntraFi that could value the financial technology company at more than 10 billion dollars, according to people familiar with the matter cited by Reuters. The firms have hired Morgan Stanley and Guggenheim Securities to advise on a process that is in its early stages, and no final decision has been made; the owners could still keep the business. Blackstone and IntraFi declined to comment.
IntraFi, based in Arlington, Virginia, operates what it describes as the largest reciprocal deposit network in the United States. The network lets banks spread customer deposits across multiple institutions so balances above the 250,000 dollar federal insurance limit remain insured, and it lets banks buy and sell deposits to manage funding, with IntraFi earning fees on the flows.
Demand for that plumbing rose sharply after the failure of Silicon Valley Bank in 2023 made large depositors selective about where they hold cash. The sources put IntraFi’s annual EBITDA at 630 million dollars, which at a valuation above 10 billion dollars would price the network at more than 16 times that figure, a multiple for infrastructure like scarcity rather than for a software vendor.
Blackstone acquired the company in 2019, when it was known as Promontory Interfinancial Network, from backers including Bank of New York Mellon, and Warburg Pincus invested in 2022. The company was founded in 2002 by three former bank regulators. Whether a sale proceeds, and whether a strategic buyer or another sponsor pays the explored value, is unconfirmed; this story reports the exploration only.