ILS service provider Apex Group gets $1.1bn+ funding from Carlyle & Goldman Sachs

Apex Group, a large independent financial services provider that also works in the insurance-linked securities (ILS) space, has secured a significant financing backed by Carlyle and Goldman Sachs, with over $1.1 billion committed.

Apex Group said that the financing was secured through an issuance of Holdco PIK Notes that secured an incremental over $1.1 billion from the two existing backers.

Carlyle’s Global Credit business and Goldman Sachs Private Credit have jointly committed the financing into the global financial services provider, with Apex noting that it builds on an existing relationship with the pair, following an initial Preferred Equity Note in 2020 and a follow-on issuance in 2021.

Peter Hughes, Founder and CEO at Apex Group, commented, “We are extremely pleased to further expand our relationship with Carlye and Goldman Sachs.

“The new issuance validates Apex’s strong business model but will also enable product and geographic expansion as well as further technology investment.”

The commitment “endorses Apex’s sustainable growth strategy, following the successful integration of a number of previous acquisitions, continued strong organic growth and technological innovations,” the company also said.

The financing is expected to be used to support Apex’s growth plans, with a focus on optimising its current platform, strategy and investing in technology innovation.

Apex further said the financing has enhanced its financial profile, both in terms of leverage and liquidity.

Apex is one of the largest service providers in the sectors it focused on, of which the insurance-linked securities (ILS) market is a relatively small component.

Across the Apex business, the company has assets on platform of around $3.1 trillion, which are serviced across its custody, administration, depositary and under management by its more than 13,000 employees worldwide.

Apex Group acquired Bermuda-based Equinoxe Alternative Investment Services and rebranded it to be named Apex Insurance Fund Services back in 2018, then built out a specialism in ILS fund servicing, alongside which it manages special purpose vehicles used for ILS and collateralized reinsurance transactions and fund structures.

The company has offered ILS specialist services to sponsors, fund managers and insurance vehicles, including, pre-launch assistance, fund and portfolio accounting, investor services, reporting and AML, cash administration and regulatory compliance services.