Genstar Capital portfolio company Apex Group (Apex) has acquired M M Warburg & Co’s Asset Management and Servicing business in Luxembourg (Warburg). Upon completion of the transaction, Apex, a Genstar portfolio company, will have nearly USD350 billion of AuA.
The transaction is the third for Apex in the space of six months following the acquisition of both Equinoxe Alternative Investment Services and Deutsche Bank’s Alternative Fund Services business in 2017. This latest move reaffirms Apex’s position as the fastest growing fund administrator in the world and brings it closer to achieving its goal of becoming one of the top five largest fund administrators globally. Apex and Genstar partnered with SALU Capital, led by Managing Partner Markus Philipp Ehrhardt, whose market knowledge and network was instrumental in the successful origination and execution of the transaction.
The transaction will see Warburg Invest Luxembourg and M M Warburg & Co Luxembourg become part of Apex, adding a further USD50 billion to Apex’s global AuA. The Group’s unique operating model and globally connected service provision opens up additional jurisdictional expertise and investment options to Warburg clients.
The full depositary services and private equity depositary solutions provided by the Warburg Luxembourg units brings will add further weight to Apex’s strength in delivering a complete service to European regulated funds, and will further complement the services integrated via the Deutsche Bank AFS acquisition.
Parent company, M M Warburg & Co (AG & Co) KGaA, and Apex will form a strategic partnership for Luxembourg based asset management services businesses whilst Warburg Invest (Germany) will also continue to focus on its German asset management business.
Terms of the agreement have not been disclosed. The transaction is subject to customary closing conditions, including regulatory approval and is expected to be completed in the second quarter of 2018.
“The addition of the Warburg team and product suite further strengthens our capabilities in the highly regulated European market as we continue to develop the most complete service offering in the sector. There are benefits for both the transitioning Warburg clients and existing Apex clients in this combined offering and as we continue to grow we want to help them to grow with us,” says Peter Hughes (pictured), Founder and CEO at Apex.
Joachim Olearius, Spokesman for the Partners of M M Warburg & Co, says: “In Apex we have found a partner for this transaction that perfectly meets the requirements and expectations of our customers. Apex’s independence and unfailing dedication to delivering exemplary service to its clients means we can be confident that the transition will be smooth and service levels maintained. Our continued commitment to working closely with Apex as a strategic partner aptly demonstrates our trust and confidence in this combination.”
Willkie Farr & Gallagher LLP and Arendt & Medernach provided legal counsel to Apex and Genstar.
