Apex Group (Apex) is to acquire BRL Trust Investimentos (BRL Trust), a Brazil-based independent fund administrator.
This acquisition reinforces the Group’s intent for the Latin American market, supplementing its private equity capabilities while adding liquid asset servicing capabilities for Brazil and the broader Latin American market. This deal further complements the Group’s previous announcement of its intent to acquire MAF, the fund administration business of the Brazil-based Banco Modal which is currently awaiting regulatory approval.
The BRL Trust business will add BRL198 billion (USD38 billion at current exchange rates) in assets under administration and BRL166.7 billion (USD32 billion at current exchange rates) in assets under custody, across 560 international and Brazilian investment funds.
BRL Trust serves a range of clients, focusing on large international institutional investors, sovereign wealth funds, private equity firms, large conglomerates and financial institutions, as well as prominent domestic investors including asset managers, single and multi-family offices, banks, insurance companies and other professional investors. By joining the Apex Group, BRL Trust’s clients will benefit the Group’s single-source solution via new products and markets, serviced by over 4,200 people across 46 offices worldwide.
Upon completion of the deal, BRL Trust will add in excess of 160 employees to the Group, increasing its overall Americas headcount to over 500 people, while simultaneously broadening the Group’s existing presence in the Americas through offices in São Paulo and New York.
As announced upon signing of the acquisition of Banco Modal’s MAF, Ricardo Lima Soares (Head of LatAm), who has extensive experience in the local market, will help oversee the Group’s local operations and support its continued expansion in the region.
Peter Hughes, Founder and CEO of Apex Group, says: “We continue to see significant opportunity in the Latin American market and with the strategic acquisition of BRL Trust, Apex becomes the largest independent services provider in the Brazilian market. Whether managers are looking to raise, operate and invest funds domestically in Brazil or across international markets, Apex will now be the default choice to service these funds using a coordinated single-source offering.”
Georges Archibald, Managing Director, Americas at Apex Group, adds: “The strategic acquisition of BRL Trust will benefit our US clients through further expansion of our cross-border offering in the Americas, allowing for comprehensive multi-jurisdictional coverage and the provision of expert local market support. This addition to the Group will strengthen the geographic reach of our single-source solution, enabling us to seamlessly support global clients with structures in Brazil and at the same time, connecting Brazilian clients to international markets via their global structures.”
Danilo Barbieri, Co-Chief Executive Officer, BRL Trust Investimentos adds: “We share Apex’s vision for the significant value and growth potential in the Brazilian market and we are excited to become part of a Group that has grown to become one the largest international providers, offering the broadest depth and range of services in the industry. Our clients will see the benefits of Apex’s international experience and presence as well as an expanded range of products.”
Financial terms of the transaction were not disclosed. Completion of the transaction is expected in H2 2021 and is subject to customary terms and conditions and regulatory approvals. A&M acted as financial and tax advisor and Lefosse Advogados and Willkie Farr and Gallagher provided legal counsel to Apex Group. Vinci Partners and Souza, Mello e Torres provided counsel to BRL Trust Investimentos.
