The Bermuda-headquartered Apex Group closed its second NZ deal last week after settling the purchase of fund-hosting and platform business, Implemented Investment Solutions (IIS), for an undisclosed sum.
Apex agreed to buy IIS this September following the Boxing Day takeover of Auckland investment administration firm, MMC, last year.
Founded by Peter Hughes in 2003, Apex has snaffled up various investment back-office, compliance and data service companies across the world, with the NZ entry coming soon after a A$410 million buy-out of Australian fund admin provider, Mainstream.
Last week Apex also completed the purchase of Netherlands-based Darwin Depositary Services – a specialist provider in the European alternative investment funds market.
“This is the latest in a series of strategic global acquisitions for Apex Group, adding depth of product and services, globally, including the recently announced addition of Maitland’s fund services and ManCo business,” a release marking the Darwin deal says.
According to an Apex statement, the dual NZ acquisitions will see clients here “further benefit from access to Apex Group’s cross-jurisdictional single-source solution, including solutions such as ESG Rating, Reporting & Advisory and Digital Banking, offered via a network of over 80 offices globally and delivered locally by 10,000 professionals”.
While Apex owns other fund-hosting (FundRock) and investment admin operations offshore, the NZ deals took the group into new distribution areas with the MMC Wealth Administration and IIS-owned InvestNow platforms,
MMC bought the adviser-focused wealth platform, formerly know as Aegis, from ASB in 2019. Launched in 2017, the direct-to-consumer InvestNow fund platform has grown to more than 25,000 clients and $1.3 billion.
Just prior to finalising the Apex deal, the Financial Markets Authority slapped InvestNow with a public warning over sloppy anti-money laundering (AML) practices. Regulators have ramped up AML oversight with a string of recent warnings targeting firms across the financial services sector.
However, the InvestNow AML breach did not affect the Apex agreement.
“We are pleased to welcome IIS and InvestNow to Apex Group as we continue to strengthen our presence and single source offering in the New Zealand market,” Hughes said in a statement last week. “… As we integrate recent acquisitions and mature operationally, we will continue to extend the depth and reach of our solutions, while ensuring their delivery is underpinned by the highest levels of client service.”
Apex has yet to announce new services for NZ clients but the group rolled out its Global Compliance Solutions in the Australian market at the end of October.
The service “simplifies compliance and enables business opportunities from regulatory licensing support through to ongoing compliance advisory for existing and future regulatory requirements”, Apex says in a release.
“The expansion of Compliance Solutions in the Australian market will help to address clients’ risks and concerns around ESG, AML and financial crime for financial services entities, as well as delivering compliance advisory support for superannuation funds,” the statement says.
Among other services, Hughes said Apex offers bespoke ESG data covering thousands of privately owned companies.
In October he also seeded a new ESG-focused charity with a “considerable cornerstone donation”, according to a release.
The independent Apex Foundation will support “grassroots charitable projects in three key areas: the preservation, conservation and protection of the environment; women’s empowerment and economic independence; and education and social mobility”.