Apex Group Ltd. (“Apex”), one of the world’s largest fund administrators, and Genstar Capital have jointly announced the acquisition of Ipes, a leading provider of fund administration and other services to the private equity sector.
Adding $165 billion in assets under administration to the Group’s portfolio, this acquisition will bolster Apex’s private equity capabilities and depositary services across Europe and position the Group as the fifth largest fund administrator globally.
The acquisition of Ipes from pan-European private equity firm Silverfleet Capital will further strengthen the Group’s breadth of service and expertise in the European market. Headquartered in Guernsey, Ipes currently has 265 staff across five European offices. As one of the largest European private equity fund administrators and depositaries, Ipes works with 195 clients and provides administration and depositary oversight for 390 funds. The well-established European reputation and robust private equity infrastructure Ipes brings to Apex will complement the existing European set up and extend its private equity arm and expertise.
As an independent fund administrator in the unique position of owning a bank, Apex offers a wealth of solutions backed by a strong global presence. Ipes clients will see immediate value from the transaction, gaining access to an additional 19 jurisdictions, Apex’s renowned local service delivery model, and a full suite of regulatory products in Luxembourg—which with this deal will house over 450 Apex staff members. With the successful closing of this acquisition, Apex employee numbers will reach almost 2,000 and its total assets being serviced will tip circa $535 billion.
The latest acquisition reflects Apex’s continued global growth, adding to a series of transactions that position it as one of the largest fund administrators in the world. Towards the end of last year, Apex announced the acquisition of the Deutsche Bank’s Alternative Fund Services business, building on its recapitalization by Genstar Capital and acquisition of Equinoxe Alternative Investment Services. Apex also announced the acquisition of M.M.Warburg & CO’s Asset Servicing business in January this year, which is expected to reach final close in the summer. Combined, these acquisitions strengthen Apex’s suite of services and market-specific capabilities on a local, regional, and global scale—all while positioning Apex one step closer to its goal of breaking the trillion dollar barrier.
Terms of the agreement are not being disclosed. The transaction is subject to customary closing conditions, including regulatory approval and is expected to be completed at the end of Q3, 2018.
Peter Hughes, Founder & Chief Executive Officer, Apex Fund Services, said:
“This deal marks another momentous milestone for Apex, positioning us as the fifth largest fund administrator in the world—a goal we set out to achieve over a five-year period but have achieved in just under a year. Our focused growth strategy is designed to build out the global Apex portfolio of services and increase our expert resource across key markets. Throughout this growth we remain steadfast and committed to upholding the hallmarks of the Apex brand—offering flexibility in the solutions we offer, exceptional locally delivered customer service, and wrapping that framework around best-in-class technologies.”
Chris Merry, Chief Executive, Ipes, said:
“At Ipes, we understand the importance of staying at the forefront of industry and regulatory developments in order to meet the evolving needs of today’s clients. With this in mind, Apex and Genstar were natural partners for us and one that mirrored our commitment to innovation and exceptional customer service. We pride ourselves on our dedication to providing a robust set of capabilities to clients worldwide, and we’re thrilled that Apex’s broad global reach will enable us to build out our client offerings with a number of new solutions. We’re confident this partnership will bring a wealth of benefits to both Ipes clients and Apex clients in Europe and across the world. ”
Tony Salewski, Managing Director of Genstar Capital, said:
“We are excited to continue supporting Apex in driving growth through strategic acquisitions of high-quality businesses like Ipes. Both Apex’s and Ipes’ clients will greatly benefit from the combination of these two leading and complementary businesses.”
Macquarie Capital acted as exclusive financial advisor and Willkie Farr & Gallagher provided legal counsel to Genstar and Apex. N M Rothschild & Sons acted as financial advisor and Travers Smith provided legal counsel to Ipes.