Apex Group on Thursday said it is poised for expansion after having secured 400 million dollar in term debt, aiming to boost liquidity and further organic and inorganic growth. The firm, financially backed by a group of four venture capital firms, is known to be vying for an initial public offering some time in the coming years.
The new funding enables Apex to pursue additional organic and inorganic growth in 2024, while maintaining its credit rating, as stated by S&P. Term debt is a loan with a set payment schedule over several months or years.
In recent years, Apex Group has expanded notably, completing over 40 acquisitions, including well-known asset management service providers such as M J Hudson, BCI, and the Luxembourg-based alternative administrator, Sanne Group.
Global reach
From its inception just over two decades ago, these purchases, combined with robust organic growth, have elevated Apex Group to a leading global position. The firm now boasts employment of over 12,000 individuals across 97 branches in 39 countries. In Luxembourg the firm employs about 1,200 people and offered management company and depositary banking services.
S&P Global Ratings indicates that this new financial move won’t dent Apex Group’s credit standing, adding that it will «position the company for further organic and inorganic growth in 2024,» according to Apex.
Stable rating
Fitch’s analysis assigns Apex Group a B+ rating, highlighting the Group’s “solid business risk profile characterised by strong geographic and customer diversification and its scale, combined with low churn levels and recurring revenue streams, which supports cash flow stability.”
Moody’s shared a similar sentiment, noting that the current rating for Apex Group remains stable. Apex has an “established market position as one of the largest independent fund services providers globally with a comprehensive product offering and global footprint, which will be further improved by the recent acquisitions.”
Positioned for 2024
“We’ve seen remarkable growth over the years and have strategically acquired to ensure we offer top-notch services globally,” said David Carrick, CFO for Apex Group, in a comment. “This latest financial move positions us strongly for our 2024 strategy and future expansion.”
In a recent interview with Investment Officer, Apex founder Peter Hughes said Apex’s backers, including Genstar Capital, Carlyle, TA Associations, and Mubudala, have expressed their continued support, potentially setting the stage for a longer-term vision that might culminate in an IPO in London or the US. ““They’re giving us a lot of timeline and runway, and actually, the strategic exit for them is an IPO probably in London or the US,” he said.
Established in Bermuda in 2003, Apex Group has developed into a leading global financial service provider. The group offers a range of services, extending to asset managers, financial bodies, private individuals, and family businesses.