Apex Group acquiring Beacon
Beacon Fund Services (Bermuda) and two of its associated companies are being acquired by Apex Group.
The move will add about $10 billion in assets under administration to the portfolio of Apex.
The acquisition was jointly announced by Apex and San Francisco-based private equity firm Genstar Capital, which invested in Apex in 2017.
It is anticipated the deal will be completed in the second quarter of the year, subject to customary closing conditions, including regulatory approval. The price of the deal has not been disclosed.
The Royal Gazette asked Apex if there would be any impact on jobs, either in Bermuda or elsewhere, as a result of the acquisition, and was told by a spokeswoman: “We are acquiring the business along with its expert resource to add value to our team and service offering.”
Fund administrator Beacon was established in Bermuda in 1995, providing services to offshore and domestic hedge funds and other international entities. Apex was also established on the island, in 2003, and is one of the world’s largest independent fund administration and solutions providers. It has $610 billion of assets under administration.
The acquisition of Beacon, including Beacon Corporate Services Ltd and Beacon Management Ltd, “adds further weight to Apex’s hedge fund administration, corporate services and transfer agency solutions”, according to a statement by Apex.
Last month, Apex announced its acquisition of the corporate and private client services and Throgmorton business of Link Group’s Asset Services division.
Peter Hughes, founder and chief executive officer of Apex Fund Services, said: “We have been focusing on expanding our capabilities into new markets over the past 12 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 buildout 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 welcoming the team to the Apex Group.”
Nitin Aggarwal, CEO of Beacon Fund Services, said: “We have built our business on tailoring service solutions and opening up opportunities for our clients.
“Becoming part of the Apex Group at this exciting time of groundbreaking expansion will bring great opportunities to both our clients and employees, and is the next natural step in an ever-globalised asset management space.
“The range of products and services that will now become available to our clients, including cross-jurisdictional capabilities and expertise across multiple asset classes is extremely valuable. We feel that we have found the right home with Apex due to its ongoing commitment to expanding its service portfolio while maintaining its agility and independence as a provider.”
While, Sid Ramakrishnan, vice-president of Genstar Capital, said: “When we invested in Apex 18 months ago, we committed to building a global fund administrator in part by acquiring complementary businesses within high growth areas of the fund services market.
“The acquisitions we have completed since then have helped to broaden Apex’s suite of solutions and built its client base to include a wider group of asset managers. We are very pleased with the company’s performance and continue to focus on organic growth opportunities, as well as additional add-on opportunities that will drive accelerated growth.”