Apex Fund Services has acquired Deutsche Bank’s Alternative Fund Services business, marking the latest bank-owned fund administrator to leave the business.
The takeover will propel Apex into the top ten administrators in the world, with the deal more than doubling its assets under administration (AuA).
With the recent backing of private equity firm Genstar, the independent fund administrator recently closed a deal to takeover Equinoxe Alternative Investment Services.
Following the announcement of that deal, Apex CEO, Peter Hughes, told Global Custodian there would be more acquisitions to come, and signalled his intentions to break into the top five administrators.
“This is another significant step in the evolution of the Apex Group,” said Hughes on the Deutsche Bank deal.
“This acquisition is consistent with Apex’s ongoing commitment to continued strategic investments and to developing our product offering to become the most complete partner in the sector.”
Deutsche Bank’s Alternative Fund Services includes its administration services to hedge funds, private equity and real estate funds, along with depositary and fund of funds custody.
The transaction is expected to close in the second quarter 2018.
“The Apex team is working closely with Deutsche Bank to ensure a seamless transition and we are committed to providing our new customers with the same high level of service our current Apex customers have come to expect and delivering additional and tailored services to the AFS clients,” added Hughes.
“Apex’s philosophy for delivering tailored and client-centric service on a local level remains the same. We are delighted to welcome the AFS management and staff to Apex and look forward to continuing to develop our global team as we step closer to our target of becoming one of the world’s top five largest fund administrators.”
A spokesperson added all of Deutsche Bank’s Alternative Fund Services team will move over to Apex, including senior management.
Some bank-owned fund administrators have decided to prioritise more profitable business areas such as corporate and investment banking, with technology-focused and more asset servicing specialist administrators now leading the market.
Banks including Citi, Credit Suisse, UBS and Wells Fargo have all sold their alternative fund administration businesses to larger players.
Currently, banks that have a larger asset servicing business such as BNY Mellon, Northern Trust, State Street, MUFG, and BNP Paribas Securities Services remain the dominant bank-owned players.