Apex Group Ltd announces acquisition of Beacon Fund Services in Q2, 2019
Apex Group Ltd., the world’s fifth largest fund administrator and a portfolio company of Genstar Capital, declared the purchase of Beacon Fund Services (Bermuda) Ltd, Beacon Corporate Services Ltd and Beacon Management Ltd. The transaction is expected to be finalised in Q2, 2019. The terms of the agreement have not been released as the transaction is subject to customary closing conditions and regulatory approval.
The purchase of Beacon, a well-established Bermuda-based fund administrator, adds further weight to Apex’s hedge fund administration, corporate services and transfer agency solutions, while also adding $10bn in assets under administration to the Group’s portfolio.
Other Acquisitions of Apex
It is said that Apex has been on a procurement spree since 2018. The firm acquired hedge fund administrator Custom House and Deutsche Bank Alternative Fund Services business. Additionally, Apex also purchased fund administrator Ipes, and M.M.Warburg & CO’s Luxembourg-based asset management and servicing business.
Headquartered in Bermuda, Beacon was established in 1995 and delivers sophisticated service offerings to both offshore and domestic hedge funds and other international entities. Beacon’s addition to the Apex Group is another strong strategic and cultural fit given its independent business model and focus on delivering a personal approach customer service.
Benefits for both companies from the acquisition
This acquisition was welcomed by Apex as it believes that the deal will offer immediate value to clients of Beacon. Moreover, Apex deemed Beacon as a tough, tactical and cultural fit. By acquiring Beacon, it takes Apex’s financial assets to $610 billion. Moreover, the move makes Apex one of the largest service providers in the global fund administration space.
This year, the Group also signified its intention to branch out into the wider financial services market through the acquisition of the Corporate and Private Client Services (“CPCS”) and Throgmorton businesses of Link Group’s Asset Services division, further enhancing its offering to deliver a full global outsourcing solution.
Beacon clients will see immediate value from the transaction, gaining access to an additional 28 jurisdictions as well as custody and depositary solutions plus corporate services, while retaining the value of working with an independent provider.
Statement of Founder & Chief Executive Officer of Apex Fund Services
Peter Hughes, Founder & Chief Executive Officer of Apex Fund Services, stated, “We have been focusing on expanding our capabilities into new markets over the past twelve months, evident through the like of the Link Asset Services and Warburg acquisitions, yet the addition of Beacon demonstrates our simultaneous dedication to continuing to improve and build-out the core service areas that Apex was founded on. As Apex itself was also established in Bermuda, this is a natural fit to expand our presence on the Island and I am looking forward to welcome the team to the Apex Group.”