NEW YORK, Nov 7 (Reuters) - Private equity firm Crestview Partners has called off the sale of Munder Capital Management, four sources told peHUB, a private equity news website owned by Thomson Reuters.
High price expectations scared many bidders away, two private equity sources said. Crestview asked for bids of more than 10 times earnings before interest, taxation, depreciation and amortization (EBITDA) for Munder, but ended up receiving only 7 times EBITDA, one of the PE sources said.
“Crestview is going to keep the business for now and recap it,” the PE executive said.
Founded in 1985, Birmingham, Michigan based Munder is an asset manager with $15.5 billion in assets under management.
Crestview, a New York private equity firm, acquired Munder from Comerica in January 2007, in a deal valued at $302 million.
Crestview put Munder up for sale earlier this year with Goldman Sachs tapped to advise on the auction. The private equity firm was seeking bids of $350 million to $400 million, Reuters reported.
The auction for Munder was dominated by private equity firms. Buyouts firms including Thoma Bravo, Blackstone and Flexpoint Ford were vying for the asset manager, Reuters said.
Blackstone was reportedly partnering with Advent International to jointly buy Munder as a way to create a multi-boutique investment manager similar to Affiliated Managers Group.
Officials for Crestview and Goldman declined comment. Munder did not immediately return calls for comment.