Carlyle will prepare bankers to sell British fund network Calastone, sources said

by Amy-Jo Crowley

LONDON (Reuters) – Carlyle has lined up bankers to explore the sale of British financial network and data business Calastone, the latest deal in a sector that has attracted billions of pounds from investors, four people familiar with the matter said.

A US buyout group is working with Barclays to explore the sale of its London headquarters, a trading and investment fund marketplace powered by blockchain technology, the people said. It also provides information on fund flows.

The process is in its early stages and Carlyle is expected to proceed with a bid before the summer, two of the people said.

It could bring in more than 20 times the proceeds before interest, taxes, depreciation and amortization, or 600 million pounds ($731.52 million), at the time of sale, based on deals in the broad financial technology and information sector, one of the people. Added.

The four sources said the deal was uncertain and asked not to be identified as the matter is confidential.

Carlyle and Callaston did not immediately respond to a request for comment. A Barclays spokesman declined to comment.

Calastone is expected to attract interest from global exchange and market infrastructure groups as well as private equity firms, the three people said.

Specialized in financial technology and information to clients including banks, asset managers and investment groups, and the sale of companies traded at high valuation multiples, featuring the latest series of deals. BlackRock agreed to buy Preki for £2.55bn last year.

Calastone’s clients are 4,000 fund dealers and fund manager clients in 57 countries, processing £270bn of investment value every month, according to the group’s website.

Among the technologies, using blockchain to automate manual operations such as order routing, settlement and transaction reporting for asset and fund managers has disrupted costs and inefficiencies in the past, according to the website.

Carlyle, which has $447 billion under management, bought Calstone from venture capital investors Octopus Ventures and Accel in 2020 for an undisclosed sum. Management, led by CEO Julian Hammerson, holds a minority stake in the business.

The income earned by Calastone in 2010 It was £68.3 million in 2023, up from £60.3 million a year earlier.

($1 = 0.8202 pounds)

(Reporting by Amy-Jo Crowley. Editing by Anusha Sakowi and Jane Merriman)