Apex Group, a fund services provider with substantial operations in Luxembourg, on Thursday said it has acquired Prometa Fund Support Services Inc., a Canada-based provider of fund services. Financial details were not disclosed.
Prometa delivers fund services to clients in Canada, the United States, and Bermuda, including hedge funds, mortgage investment corporations, and LSVCCs, or labour-union owned companies that provide venture capital to Canadian companies. Prometa administers over 28 billion dollars in assets for approximately 50 fund companies representing more than 180 funds and approximately 225,000 individual investors.
The acquisition fits into Apex’s global growth strategy in which Luxembourg plays a key role. Bermuda-based Apex is backed financially by San Francisco-based Genstar Capital. Since Genstar became involved in 2017, Apex’s assets under administration have surged to nearly three trillion dollars in assets serviced across administration, custody, depositary and under management.
“The addition of Prometa to Apex Group further strengthens our service offering for clients in North America in the alternative asset management space,” said Peter Hughes, Founder and CEO of Apex Group. “As Canada’s asset management industry continues to see impressive growth, this acquisition bolsters our ability to deliver our single-source solution locally and to be the best possible partner for our clients in this market.”
North America headcount above 1000
The acquisition of Prometa will strengthen Apex Group’s presence in the geography, adding 16 employees based in Winnipeg, Canada supplementing the group’s existing offices in Toronto, Ontario and increasing its overall Americas headcount to over 1,000 people.
“We are confident that Apex Group provides the best possible home for Prometa and our clients, offering them unrivalled access to new services, geographies and opportunities,” said George Asprey, President and CEO, and Mike Kalic, Vice President and COO of Prometa in a joint statement. “The Apex Group team share our commitment to delivering exceptional client experience with innovative services, underpinned by a flexible and scalable technology infrastructure. We look forward to the opportunities that Apex Group’s single-source solution, offered globally and delivered locally, will provide for our clients.”
In addition to the acquisition of Prometa, Apex Group will continue to target organic growth in Canada, expecting to employ 200 people by the end of this year. Growth of Canada’s asset management industry outpaced both the U.S. and the global industry in 2021, with assets under management rising 14% during the year to US$3.6 trillion.
MNP Corporate Finance served as financial advisors to Prometa, with Fillmore Riley LLP providing legal advice. Stikeman Elliott LLP acted as legal advisors to Apex Group on the transaction.