Apex Group Ltd, which is backed by Genstar Capital, has acquired Deutsche Bank‘s alternative fund services business. No financial terms were disclosed. The deal is expected to close in the second quarter of 2018. Macquarie Capital served as financial adviser to Genstar and Apex.
HAMILTON, Bermuda and SAN FRANCISCO, Oct. 19, 2017 /PRNewswire/ — Apex Group Ltd. and Genstar Capital today jointly announced the acquisition of the Deutsche Bank (XETRA: DBKGn.DE / NYSE: DB) Alternative Fund Services (“AFS”) business.
The latest joint announcement from the firms reveals the rapid expansion of Apex since the company was recapitalized with Genstar and simultaneously acquired Equinoxe Alternative Investment Services. The purchase of the AFS business is the most recent significant step in Apex’s movement towards its stated goal of being a top five global fund services business.
The transaction will add $170 billion in AUA, propelling Apex to become the eighth largest administrator in the world and the largest independent administrator. Apex’s global reach and connected operating model opens up an additional 18 investment jurisdictions to AFS clients, with local expertise available through the Apex network of offices. The combination of AFS and Apex will also enable a broader range of products and services to be offered to clients. Apex’s local service delivery model, coupled with AFS’ management, staff and platform, will ensure client service continues at the highest level. It is this service model and the global network of offices that has enabled Apex to achieve one of the fastest organic growth rates in the sector. Terms of the agreement are not being disclosed. The transaction is expected to close in the second quarter 2018.
“This is another significant step in the evolution of the Apex Group. This transaction complements the existing Apex business and further strengthens our position as the leading independent provider of fund services globally,” stated Peter Hughes, Founder and CEO at Apex. “This acquisition is consistent with Apex’s ongoing commitment to continued strategic investments and to developing our product offering to become the most complete partner in the sector.”
“The Apex team is working closely with Deutsche Bank to ensure a seamless transition and we are committed to providing our new customers with the same high level of service our current Apex customers have come to expect and delivering additional and tailored services to the AFS clients. Apex’s philosophy for delivering tailored and client-centric service on a local level remains the same. We are delighted to welcome the AFS management and staff to Apex and look forward to continuing to develop our global team as we step closer to our target of becoming one of the world’s top five largest fund administrators,” adds Hughes.
Tony Salewski, Managing Director of Genstar Capital, said “We are excited to continue supporting Apex’s growth trajectory through the acquisition of this high-quality business. AFS expands Apex’s sophisticated private equity and real estate servicing offering, and adds complementary banking products to Apex’s global client base. The combination yields benefits to the clients of both Apex and AFS.”
“A key goal with this transaction was to find a partner that will continue to deliver high quality services to our Alternative Fund Services clients. We feel we have achieved our objective with Apex, with whom Deutsche Bank is looking forward to working closely over the coming months,” commented Satvinder Singh, Global Head of Securities Services at Deutsche Bank.
Macquarie Capital acted as exclusive financial advisor and Willkie Farr & Gallagher provided legal counsel to Genstar and Apex. Deutsche Bank acted as financial advisor and Freshfields, Bruckhaus Deringer provided legal counsel to Deutsche Bank.
About Apex Fund Services
Apex Fund Services, established in Bermuda in 2003, is one of the world’s largest independent fund administration and middle office solutions providers with offices in 35 locations worldwide. Apex has continually improved and evolved its product suite by surrounding these core administrative services with additional products spanning the full value chain from information delivery and regulatory products to a full middle office solution and fund listings database. Apex now administers the investments of some of the largest funds and institutional investors in the world. www.apexfundservices.com
About Genstar Capital
Genstar Capital (www.gencap.com) is a leading private equity firm that has been actively investing in high quality companies for nearly 30 years. Based in San Francisco, Genstar works in partnership with its management teams and its network of strategic advisors to transform its portfolio companies into industry-leading businesses. Genstar manages funds with total capital commitments of approximately $9 billion and targets investments focused on targeted segments of the financial services, software, industrial technology, and healthcare industries. Genstar’s current and previous investments in financial and business services companies include Ascensus, Strategic Insight, Institutional Shareholder Services, Mercer Advisors, AssetMark and Altegris.
About Deutsche Bank Alternative Fund Services
Deutsche Bank Alternative Fund Services which was established almost 10 years ago is one of the largest bank owned administrators in the world providing administration services to hedge funds, private equity and real estate funds, depositary and fund of funds custody. Their offices span 9 locations in 8 jurisdictions worldwide. The assets under administration are currently circa $170bn serviced by approximately 300 people.