Apex Fund Services has agreed a recapitalisation deal with middle-market private equity firm Genstar Capital and is also to acquire Equinoxe Alternative Investment Services.
Headquartered in Bermuda, Apex was founded in 2003 by Peter Hughes (pictured) and today provides back office, middle office, regulatory reporting and other administrative services to a global customer base of asset managers across all asset classes.
With the addition of Equinoxe, Apex will increase its suite of middle office solutions and will administer close to USD80 billion in assets.
With enhanced capabilities, global reach and capital support from Genstar, Apex has a goal of becoming a top five global fund administrator within the next five years.
Hughes will retain a significant equity stake in the combined business and will continue to lead the combined business in his role as founder and chief executive officer.
Tony Salewski, managing director of Genstar Capital, says: “There is a large and growing market for outsourced fund administration services to private and public market managers. The combination of these two leading and complementary businesses will immediately create a global fund administrator with significant scale, a full suite of solutions, global presence, and the expertise of an experienced management team. The opportunity to build a platform around Apex fits squarely within our approach of investing in leading businesses that provide critical tools and services to the investment management industry. We are excited to support Peter and his team in driving accelerated growth through strategic add-on acquisitions and expansion within high growth areas of the fund services market.”
Hughes says: “This is a significant step in Apex’s ongoing development as a global institutional provider. The Equinoxe team has built a successful business, and its combination with Apex will provide a strong strategic and cultural fit. We are extremely pleased to partner with Genstar, a firm that shares our guiding principles for delivering quality service to clients. We also share an ongoing commitment to growing Apex, both organically and through acquisition. We look forward to partnering with Genstar to continue to build scale and enhance Apex’s ability to service clients across multiple jurisdictions.”
Steve Castree of Equinoxe adds: “The team at Equinoxe is excited to be joining forces with Apex. This transaction is a natural fit for us as our philosophy for always putting client service standards first is tightly aligned with the way in which Apex already operates – our clients and staff will benefit from being part of a larger firm that is also committed to these ethics and standards.”
The closing of the transactions are subject to customary closing conditions, including the receipt of regulatory approvals. The parties expect the transactions to close in the third quarter of 2017.
Apex has been a portfolio company of FTV Capital, a growth equity investment firm, since 2011. Equinoxe has been a portfolio company of private equity firm Estancia Capital Management since 2013.
Macquarie Capital served as financial adviser to Apex. Willkie Farr & Gallagher served as legal counsel to Genstar. Debevoise & Plimpton served as legal counsel to Apex and its sellers. Kirkland & Ellis served as legal counsel to FTV.
