Bermuda-based global investment administration firm, Apex Group, has added to its expanding Australasian asset suite with the purchase today of Wellington fund-hosting and platform business, Implemented Investment Solutions (IIS), for an undisclosed sum.
In a deal confirmed this morning (Tuesday, September 13), Apex acquired IIS, including the InvestNow platform, less than a year after buying key NZ investment administration specialist, MMC.
Under the terms of the agreement, “IIS and InvestNow will become part of Apex Group in New Zealand, alongside the former MMC business”, according to a release.
IIS founder, Anthony Edmonds, will report to Apex global chief, Peter Hughes, with the firm’s 28 staff remaining post sale.
Edmonds said in the statement: “Both our clients and employees will benefit from leveraging Apex Group’s global fund hosting and management company capabilities, enabling investment managers to offer their investment solutions in the thriving New Zealand market. Apex Group’s global capability and experience enables us to continue to grow and capture the significant opportunity that exists within InvestNow, and I am extremely excited about what this means for our clients.”
Apex global chief and founder, Peter Hughes, said the IIS purchase fit with the group’s ambition of “increasing the depth of our services on a global scale”.
“New Zealand’s investment management community continues to grow, and with the addition of IIS and InvestNow, will enable us to further deliver our single-source solutions for investors participating in, and serving the local market through locally domiciled funds,” Hughes said in the release.
The former AMP Capital NZ head of sales and marketing, Edmonds, launched IIS in 2010 to fill the-then vacant fund-hosting niche, since attracting more than 20, mostly offshore-based, managers to launch products under its flag. IIS hosts 22 funds with more than $5 billion under management.
In 2017, IIS rolled-out the InvestNow platform, expanding on a direct-to-consumer managed fund model pioneered in NZ by Rabobank. IIS acquired the Rabodirect fund service in 2018, adding almost $250 million in assets under management.
InvestNow most recently reported about $1.3 billion in funds under management and more than 25,000 clients including in its fast-growing KiwiSaver scheme.
Apex bought MMC just before Christmas last year only one month after snapping up Australian investment admin firm, Mainstream, for A$410 million. Mainstream reported about A$300 billion under administration at the time compared to the NZ$100 billion or so housed in MMC across its fund and wealth management arms.
MMC, which was founded by Tom Reiher and Robert Moss in 2005, purchased the seminal Aegis NZ wealth management platform from ASB in 2019.
Last month MMC chief, Vedran Babic, resigned just over two years in the role to be replaced by chief operating officer, Renée Tourell, at the end of September. MMC also formally rebranded as Apex Group NZ at the time.
Apex now boasts almost 10,000 employees over its 50 plus global offices spanning Europe, Asia, the Americas and now Australasia.
Hughes told Investment News NZ in May this year: “We always looks to integrate the businesses [Apex buys] to ensure that we have one cohesive infrastructure and as we do this we look to obtain synergies through economies of scale, particularly surrounding systems and technology. In addition, we anticipate being able to expand the product suite and geographical servicing for clients to ensure they are receiving all the services they require.”
Apex would bring services such as digital banking, international compliance technology as well as environmental, social and governance (ESG) ratings and advice, he said.
Clare Capital advised IIS on the deal with legal support from DLA Piper. Bell Gully served as legal adviser for Apex.