Genstar, Aquiline Bid for Genworth Businesses: Sources

February 11, 2013

Private equity firms Genstar Capital and Aquiline Private Equity LLC have teamed up and are in exclusive negotiations to buy Genworth Financial Inc.’s wealth management business and its San Francisco-based alternative investment business, two sources familiar with the situation said.

Genworth is working with Goldman Sachs Group Inc., according to the sources, who declined to be identified because the talks are confidential.

Genstar and Aquiline are working with Deutsche Bank AG , said one of the sources, who estimated that the deal for both businesses would be valued at $400 million to $450 million.

A Deutsche Bank spokeswoman declined to comment, as did a Genstar spokesman.

Spokespeople for Goldman, New York-based Aquiline and Richmond, Virginia-based Genworth did not immediately return requests for comment.

Genworth, once part of conglomerate General Electric, is offloading the businesses as it faces increased scrutiny from ratings agencies, largely due to losses in its mortgage business. Reuters first reported that it was selling the two businesses in October.

Genworth’s wealth management business has more than $20 billion in assets under management and sells its portfolios through about 6,000 third-party advisers across the country, according to the firm’s website.

Genworth bought its San Francisco-based Altegris business in 2010 for $35 million plus additional performance-based payments. The firm has $3.47 billion in client assets.

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