Apex Fund Services Agrees To Genstar Recap, Equinoxe Alternative Investment Services Acquisition

May 9 2017 | 10:19pm ET

Global independent fund administrator Apex Fund Services has entered into agreements to be recapitalized by middle-market private equity company Genstar Capital and simultaneously acquire Equinoxe Alternative Investment Services.

Headquartered in Bermuda, Apex was founded in 2003 and provides back office, middle office, regulatory reporting and other administrative services to a global customer base of asset managers across all asset classes. With the addition of Equinoxe, Apex will increase its suite of middle office solutions and will administer close to $80 billion in assets, according to a statement. 

Apex founder Peter Hughes will retain a significant equity stake in the combined business and will continue to lead the combined business in his role as CEO, the statement continued.

The transaction is expected to close in the third quarter and remains subject to customary closing conditions and regulatory approvals. 

Law firm Willkie Farr & Gallagher represented Genstar Capital in the deal, led by partners Jeffrey Poss and Manuel Miranda. Macquarie Capital served as financial advisor to Apex, while Debevoise & Plimpton served as legal counsel to Apex. 

“There is a large and growing market for outsourced fund administration services to private and public market managers,” said Tony Salewski, managing director of Genstar Capital, in the statement. “The combination of these two leading and complementary businesses will immediately create a global fund administrator with significant scale, a full suite of solutions, global presence, and the expertise of an experienced management team.” 

Apex has been a portfolio company of FTV Capital since 2011, while Equinoxe has been a portfolio company of private equity firm Estancia Capital Management since 2013. 

Founded in 1988, San Francisco-based Genstar focuses on investments in targeted segments of the financial services, software, industrial technology, and healthcare industries. The company manages funds with total capital commitments of approximately $9 billion, and recently raised $3.9 billion for its eighth middle-market buyout fund.  

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