Apex Group completes acquisition of Australian fund administrator Mainstream

Following the successful transaction, Apex has increased its assets across administration, depositary, custody and under management to $1.5 trillion.

By Wesley Bray

Global financial services provider Apex Group has completed the acquisition of Mainstream Group Holdings, following approvals from shareholders, the Federal Court of Australia and regulators.

Apex had been embroiled in a bidding war for the Australian fund administrator with arch-M&A-rival SS&C Technologies, which ended in July.

After weeks of counter offers the race ended as SS&C pulled out of talks, leaving Apex with the superior bid.

Now that the transaction is complete, Mainstream will operate under the Apex brand, increasing the global presence of the Group with the addition of over 360 employees located in Australia, the Cayman Islands, Hong Kong, Ireland, Isle of Man, Malta, Singapore and the United States.

Apex now officially operates from 50 offices worldwide, with 5,000 employees servicing $1.5 trillion in assets across administration, depositary, custody and under management.

As Mainstream becomes part of Apex, it will continue to provide fund administration and related services to over 1,400 funds and more than 189,000 investors with funds under administration over AUD $295 billion.  

“We are pleased to welcome Mainstream to the Apex Group, which we believe provides the best platform for the company’s continued success and international expansion,” said Peter Hughes, founder and CEO of Apex Group.

“This acquisition forms part of our strategy to continually enhance our single-source model, and significantly expands and deepens our service and product offering for clients across all geographies and aspects of their business.”

The completion of the Mainstream acquisition follows a green light received by Apex Group from private equity administration specialist Sanne, to move forward with its $2 billion deal.

With the addition of Mainstream and Sanne, Apex will service $2.2 trillion in assets across administration, custody, depositary and under management. This means the fast-growing administrator will have doubled its AUA in the space of a year.

Regulatory approval for the Sanne deal is expected in early 2022.

“We are excited to become part of the Apex Group and are enthusiastic about the opportunities it will provide Mainstream clients who can now access a wider suite of solutions through Apex’s global network,” said Martin Smith, CEO of Mainstream.

“We share similar cultures and values and are confident of our future as part of the Group. I look forward to seeing the benefits that Apex’s successful integration will bring for our clients and employees in the years to come.”