Fitch Ratings has assigned a first-time Long-Term Issuer Default Rating (IDR) of ‘B’ with a Stable Outlook. Fitch has also assigned a ‘B+’ instrument rating to the group’s proposed first-lien term loans.
Moody’s has affirmed its ‘B2’ Corporate family rating (“CFR”) and S&P Global has affirmed its ‘B -’ Issuer Credit Rating (“ICR”). The ratings incorporate the Group’s prospective acquisition of Sanne Group Plc.
The outlooks assigned by all agencies are stable, reflecting the expectation that Apex will be able to sustainably increase its revenue and profitability over the next 12-18 months through continued organic growth and the successful integration of recent acquisitions.
These ratings further reinforce and recognise the Group’s established position in the global financial services market with a comprehensive product and single-source solution offering, driving its high level of customer retention, operating profitability and strong, stable free cash flow generation.
Following an investment from private equity investor Genstar in 2017, the Group has grown both organically and via strategic acquisition, increasing its assets under administration from $50bn, to $1.5 trillion in assets (rising to $2.2 trillion upon close of the acquisition of Sanne Group Plc) serviced across administration, custody, depositary and under management.
Apex has continually improved and evolved its capabilities to offer the broadest range of solutions in the industry including fund services, digital banking, depositary, custody, super ManCo services, compliance solutions, corporate services, and a pioneering ESG Ratings and Advisory service for private companies. The Group’s single-source solution is now delivered by 5,000 employees across 50 offices worldwide.
Peter Hughes, Founder and Chief Executive Officer at Apex Group comments: “We welcome Fitch’s rating and the affirmation of ratings from S&P and Moody’s which recognise our strong credit profile in what has been a transformative year for the Apex Group. Recently announced acquisitions support the Group’s strategy of continually enhancing our single-source model by expanding our product offering for clients across all geographies and aspects of their business. We look forward to continuing to innovate in the way we service our clients and to drive positive change in the industry as more than just a financial services provider.”
David Carrick, Chief Financial Officer at Apex Group further comments: “The addition of a new - and the affirmation of existing - corporate ratings reinforces the robust and resilient business model we have built with Genstar’s backing. This positive outcome is the culmination of an immense collective effort across the business, and we are proud of this recognition of our strong credit rating profile. By remaining committed to delivering exceptional client service, we have built an unparalleled breadth of product and scaled our geographic footprint. With these ratings, and the backing of our investors Genstar, TA Associates, Mubadala and Carlyle, we look forward to continuing our growth trajectory of the business in 2022 and beyond.”
