Financial services investor Stone Point targets $7.5bn for ninth Trident fund

Trident IX is expected to hold a closing this month, according to recent report published by MassPRIM.

Stone Point Capital, the one-time private equity arm of Marsh & McLennan, is back in the market with a ninth flagship financial services offering.

Trident IX is targeting $7.5 billion, a recent report issued by Massachusetts Pension Reserves Investment Management said. The pension system, which agreed to commit $150 million, said the fund is expected to hold a closing this month.

Stone Point’s latest flagship vehicle comes just under two years since the close of Trident VIII. That fund secured $7 billion, above a $5.75 billion target and a $6.5 billion cap.

Trident IX will maintain the specialized strategy of its predecessors, the MassPRIM report said, investing primarily in large and mid-market financial services businesses in North America.

Stone Point’s Trident funds mostly acquire control stakes from owner-operators, corporate parent organizations and sponsors, according to the firm’s ADV filings. Along with backing service-related, cash-flow companies in growth mode, they invest in balance sheet-oriented companies in times of dislocation.

Stone Point sources opportunities in 12 financial services sectors and more than 70 sub-sectors, its website said. Areas of interest include asset and wealth management, banks, insurance, real estate finance, specialty finance and technology. Check sizes generally range from $75 million to $750 million.

Stone Point was established in 2005 with the management buyout of Marsh & McLennan’s MMC Capital. The firm got started with assets of $2 billion-plus and under the leadership of CEO Charles Davis, who before MMC was a Goldman Sachs partner.

Today, the Greenwich, Connecticut, firm oversees more than $27 billion in assets, accumulated in part through ever-larger Trident funds. Other senior team members are chairman Stephen Friedman and managing directors James Carey, David Wermuth and Nicolas Zerbi.

Stone Point was quite active in last year’s virus-roiled market, reporting a $4.1 billion deployment and 13 new platform investments.

It has kept an active pace this year. Stone Point’s major platform investments in recent months include the acquisition alongside Insight Partners of CoreLogic, a property data and analytics provider. The take-private deal had an equity value of about $6 billion.

Stone Point and GIC also agreed to buy Ascensus, a retirement and savings account provider, from a group led by Genstar Capital, Aquiline Capital Partners and Atlas Merchant Capital. The purchase price is about $3 billion, Bloomberg reported.

In addition to MassPRIM, LPs backing Trident IX include California Public Employees’ Retirement System, which is committing $500 million. Teachers’ Retirement System of the State of Illinois is investing $150 million, while Tennessee Consolidated Retirement System is investing $100 million.

Trident VII was earning a multiple of 1.4x and a net IRR of 18.7 percent as of March, according to CalPERS. Trident VI was generating a 2.1x multiple and a 23.4 percent net IRR.

Stone Point did not respond to a request for comment.