Apex Group enhances technology offering with PFS acquisition
Apex Group Ltd. (“Apex” or “The Group”), a global financial services provider, announces today the acquisition of Pacific Fund Systems (“PFS”), a leading global fund administration software business, from co-founders and Pollen Street Capital.
This acquisition follows Apex Group’s longstanding partnership with PFS through the use of PFS-PAXUS and will expand use of the technology platform to enhance the delivery of timely, accurate and independent portfolio accounting, fund and investor reporting.
Founded in 1999, PFS supports the investment fund clients via its core PFS-PAXUS product. PFS-PAXUS is a specialist accounting and administration software that fully supports the administration of all manner of open and closed ended traditional and alternative funds, including hedge funds and private equity investment vehicles. PFS-PAXUS is used by more than 4,000 individual users at over 100 clients managing over $1 trillion of assets under management.
PFS-PAXUS integrates all the processes that are normally performed on multiple systems, including: securities portfolio, allocation system, general ledger, fee calculation, share registry, investor communications and web portal. Benefits of this approach include increased efficiency, reduced risk of error, faster valuations, a simplified technical landscape and the ability to support complex investment structures whilst significantly reducing IT costs.
The expanded product offering will allow Apex Group to act as a single-source provider of services across the entire life cycle of client funds for both existing and acquired PFS clients.
Peter Hughes, Founder and CEO of Apex Group comments: “Through a combination of partnerships with award winning technology providers, as well as our own market leading platforms, we deliver high quality solutions to asset managers globally. PFS-PAXUS is a proven global technology solution for the funds industry that enables our clients and third parties to automate all fund administration components on a single platform. Bringing PFS-PAXUS into the Group will help us to continue exceeding client expectations by delivering a single-source solution which improves administrative efficiencies, implements essential controls, and manages our clients’ operational risk.”
Paul Kneen, CEO of PFS further comments: “PFS is dedicated to providing a first-class global business solution to its clients and we are excited to be joining Apex Group which shares these core principles and objectives. My team and I are looking forward to deepening our relationship with Apex Group, an important existing client of PFS, and a supportive home as we continue to enhance and grow our market leading offering.”
James Scott, Partner at Pollen Street Capital, adds: “Since investing in the business just over two years ago, PFS has gone from strength to strength, recording strong organic growth, recurring revenue and margins. This is a great outcome for PFS and the transaction represents the first exit in our flagship Fund IV. Pollen Street is looking forward to continuing its support of Paul and his excellent management team as well as working alongside Apex Group for the next phase of PFS’s growth.”
Terms of the transaction are undisclosed. Deutsche Bank advised Apex Group on the acquisition, and Arma Partners acted as financial advisor to PFS. Kirkland & Ellis International LLP acted as legal advisors to Apex Group and Proskauer Rose LLP acted as legal adviser to PFS.
About Apex Group
Apex Group Ltd., established in Bermuda in 2003, is a global financial services provider. With over 80 offices in 40 countries worldwide and more than 10,000 employees, Apex Group delivers an expansive range of services to asset managers, financial institutions, private clients and family offices. The Group has continually improved and evolved its capabilities to offer a single-source solution through establishing the broadest range of services in the industry; including fund services, digital onboarding and bank accounts, depositary, custody, super ManCo services, corporate services including HR and Payroll and a pioneering ESG Ratings and Advisory solution. Apex Group’s purpose is to be more than just a financial services provider and is committed to driving positive change to address three core areas; the Environment and Climate Change, Women’s Empowerment and Economic Independence, Education and Social Mobility.
PFS’ award-winning fund administration solution, PFS-PAXUS, is a specialist fund accounting and fund administration system that is the product of choice for administrators of both alternative and traditional funds across the globe. PFS-PAXUS offers fund administrators a complete back-office fund accounting, portfolio valuation, fund pricing solution and shareholder recording keeping administrative solution on a single, fully integrated system.
About Pollen Street Capital
Pollen Street is a fast growing, purpose led and high performing private capital asset manager. Established in 2013, the firm has built deep capability across the real estate, financial and business services sector aligned with mega-trends shaping the future of the industry. Pollen Street manages over £3.3bn AUM across private equity and credit strategies on behalf of investors including leading public and corporate pension funds, insurance companies, sovereign wealth funds, endowments and foundations, asset managers, banks, and family offices from around the world. Pollen Street has a team of over 80 professionals with offices in London and New York City.