Apex Group Ltd., a global financial services provider, announced the acquisition of Pacific Fund Systems (PFS), a 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.”
