Warburg Pincus Said to Explore Sale of Mutual Fund Store

  • The private-equity firm first invested in the company in 2011
  • Mutual Fund Store has $8.5 billion in assets under management

Warburg Pincus, one of the world’s largest private-equity firms, is considering selling consumer-finance adviser Mutual Fund Store in a deal that could value the company at about $700 million, people with knowledge of the matter said.

The firm has held talks with investment banks about exit options for the company, with a sale the preferred option, said the people, who asked not to be identified because the information is private. Warburg bought its stake in Mutual Fund Store in 2011 from peer Summit Partners, according to its website.

Warburg is currently in the process of raising its 12th buyout fund, just two years after raising $11.2 billion for its previous pool, according to data compiled by Bloomberg. The firm joins peers, including Advent International and Nordic Capital, in planning a return to market earlier than the industry standard five years.

Mutual Fund Store, which was founded in 1996, serves more than 37,000 clients, according to its website. The company specializes in offering customers personalized investment advice. It has more than $8.5 billion in assets under management.

A spokeswoman for Warburg Pincus declined to comment, while a spokesman for Mutual Fund Store didn’t immediately respond to telephone requests seeking comment.

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