Apex Group aims for further growth with incremental leverage neutral $400 million Term Debt raise while maintaining strong ratings
Global financial services business Apex Group (“the Group”) has secured $400 million of new Term Debt aimed at enhancing liquidity and securing further organic and inorganic growth.
The incremental capacity will allow Apex to target further organic and inorganic growth in 2024 while the Group’s credit rating is unimpacted by the loan, according to S&P.
The last few years have seen Apex Group grow significantly through a series of over 40 acquisitions. These have included asset management service providers M J Hudson, BCI and alternative administrator Sanne Group.
These acquisitions, along with strong organic growth, have seen Apex Group grow, since being established just over twenty years ago, into a leading global business employing more than 12,000 people across 97 offices in 39 countries worldwide.
S&P Global Ratings analysis suggests that Apex Group’s credit rating won’t be impacted by this new credit and that the transaction will “position the company for further organic and inorganic growth in 2024”.
Fitch meanwhile, in its analysis, rated Apex Group B+ and noted that this rating reflects 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.”
In its analysis of the deal, Moody’s said Apex Group’s current rating would be unimpacted, stating that 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”.
Commenting on the announcement, David Carrick, CFO for Apex Group said:
“Apex Group has delivered impressive growth in recent years, and, through a series of acquisitions, we’ve built a compelling business delivering best in class service for our clients around the world. This recent financing round puts us in a robust position to continue delivering against our strategy as we go into 2024 and continue building upon such success into the future.”
About Apex Group
Apex Group Ltd., established in Bermuda in 2003, is a global financial services provider. With over 97 offices worldwide and 12,000+ employees in 39 countries, 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 fundraising solutions, fund administration, digital onboarding and bank accounts, depositary, custody, super ManCo, corporate services 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.
Apex Group: email@example.com