Blackstone weighs options for Ancestry.com, including sale or IPO, sources say

Blackstone is exploring strategic options for Ancestry.com, including an initial public offering or a sale, with a potential IPO valuing the genealogical platform at approximately $10 billion. This deliberation comes amid a rebounding U.S. IPO market and could represent a significant liquidity event for Blackstone, which acquired Ancestry for $4.7 billion in 2020. Ancestry.com generates over $1 billion in annual revenue from its more than 3 million paying subscribers.

Analysis

Blackstone is actively exploring strategic alternatives for its portfolio company, Ancestry.com, including an initial public offering or a complete sale. A potential IPO is being considered at a valuation of approximately $10 billion, which would represent a significant value creation event, more than doubling the $4.7 billion Blackstone paid for the company in 2020. This move suggests Blackstone's confidence in both Ancestry's fundamentals—supported by over $1 billion in annual revenue and more than 3 million paying subscribers—and a rebounding U.S. IPO market. The process is in its early stages, with investment banks having been invited to pitch for a role, but no definitive decision has been made. A successful exit at this valuation would crystallize a substantial gain for Blackstone's private equity fund and serve as a key data point on its ability to generate returns in the current market cycle.

Key Decisions for Investors

• Investors in Blackstone (BX) should view this as a positive signal of the firm's ability to generate substantial returns from its private equity portfolio, as a $10 billion exit would crystallize a gain of over 100% on its 2020 investment.
• It is prudent to monitor the progress of the potential IPO or sale, as the final valuation and successful execution will depend on market conditions and investor appetite for new listings.
• This potential monetization event should be considered a bellwether for the health of the exit environment for large-cap private equity assets, and a successful transaction could imply a more favorable period for realizing gains across the sector.