Exclusive-Millennium Trust’s owners explore $8 billion sale -sources

By David French and Anirban Sen

NEW YORK (Reuters) – The private equity owners of Millennium Trust Company are exploring options for the U.S. retirement plan custodian, including a sale that could value it at as much as $8 billion, including debt, people familiar with the matter said on Wednesday.

The sale effort comes as Millennium Trust’s business is buoyed by higher interest rates adopted by the U.S. Federal Reserve to fight inflation.

Credit ratings agency S&P Global (NYSE:) Inc said last month the higher rates boost the revenue Millennium Trust receives from allowing customers to borrow against their retirement accounts.

Millennium Trust, which is owned by buyout firms Abry Partners and Parthenon Capital Partners, is working with financial advisors JPMorgan Chase & Co (NYSE:) and Raymond James Financial (NYSE:) Inc on the sale process, the sources said.

Potential buyers could include private equity firms and financial services companies which operate custodian and asset management businesses, the sources said.

Millennium Trust will also entertain the sale of a minority stake to a private equity firm, should an outright sale not be feasible, the sources said.

Millennium Trust generates north of $500 million in 12-month earnings before interest, taxes, depreciation and amortization (EBITDA), according to the sources.

The sources requested anonymity as these discussions are confidential. JPMorgan and Abry Partners declined to comment. Raymond James, Parthenon and Millennium Trust did not immediately respond to requests for comment.

Headquartered in Oak Brook, Illinois, Millennium Trust provides a wide range of offerings for consumers including 401(k) plans, individual retirement accounts (IRA), so-called rollover accounts, and other health and wellness services including employer-backed health savings accounts (HSA).

The business has grown rapidly since Parthenon sold a majority stake in the company to Abry Partners in 2019 for an undisclosed amount.