Apex Group Acquires Banco Modal’s Fund Administration Business in Brazil

November 19, 2020

Willkie advised Genstar Capital and its portfolio company Apex Group on the transaction.

Apex Group Ltd., a global financial services provider, and Banco Modal S.A., a Brazilian financial institution, announced that Apex acquired Banco Modal’s Alternative Fund Administration business in Brazil (MAF), MAF Distribuidora de Titulos e Valores Mobiliarios S.A. Willkie advised Genstar Capital and its portfolio company Apex Group on the acquisition and financing for the transaction.

The MAF business adds nearly $12 billion in assets under administration and custody, across clients representing institutional funds (FIPs, FIDCs and FIIs) for both international and Brazilian asset managers. It has a leading reputation for private equity and real estate administration in the Brazil market and by joining the Apex Group, MAF’s clients will benefit from Apex Group’s fund administration services and its single-source solution via new products and markets.

This transaction follows Apex Group’s October 16 announcement on its acquisition of FundRock Management Company SA and FundRock Partners Ltd, also advised on by Willkie. The firm also previously advised Genstar on the acquisition of Apex Fund Services and Equinoxe Alternative Investment Services and the subsequent bolt-ons of Deutsche Bank’s Alternative Services Business, MM Warburg, LRI, Ipes and the corporate and private clients business of Link Asset Services.

Apex Group Ltd., established in Bermuda in 2003, is a global financial services provider with 45 offices worldwide and 4,000 employees, delivering an extensive range of services to asset managers, capital markets and family offices. With approximately $19 billion of assets under management, Genstar Capital is a leading private equity firm which targets investments focused on segments of the financial services, healthcare, industrial, and software industries.

Established in 1996, Banco Modal is one of Brazil’s leading financial groups and through Modalmais it is the first fully integrated and complete digital bank for investors in Brazil with over one million active accounts, providing access to more than 400 funds and over 140 investment managers. MAF is one of Brazil’s largest alternative fund administration providers, with nearly BRL70 billion of assets under administration and custody servicing some of the largest fund managers in Brazil, including leading global fund managers investing in the country.

The Willkie deal team was led by partner Philip Coletto and the financing was led by partner Jeffrey Goldfarb. The team also included partners Jeffrey Poss and Manuel Miranda and associates William Buchanan and Sabine Houben.