Financial services provider Apex Group has reached a deal to buy British venture capital fund administration and accounting services provider Mainspring for an undisclosed sum.
Mainspring primarily serves the small and medium-sized venture fund managers operating in the UK.
Besides, the company handles a custody business that is regulated by Financial Conduct Authority (FCA). This business provides solutions to fund managers who deliver managed account investments including enterprise investment scheme (EIS) funds.
With the latest deal, Mainspring’s 70 employees in two UK offices will become part of Apex Group.
The transaction will also add £9.7bn of assets under administration (AuA) to Apex Group’s books. The AuA includes £3.7bn on Mainspring’s Investment Platform that offers private markets funds and deal custody. It also covers £6bn of venture capital fund administration.
In addition, the deal will see the incorporation of various new offerings for global private markets custody and other solutions into the portfolio of Apex Group.
Existing customers of Mainspring will gain access to local experts as well as several other services such as digital banking, ESG ratings and advisory services.
The deal awaits regulatory clearance, which is expected later this year.
It comes shortly after the completion of Sanne Group’s purchase by Apex Group. The deal boosted Apex Group’s assets to almost $3tn, handled by a workforce of over 10,000 across more than 80 offices in over 40 countries.
Apex Group founder and CEO Peter Hughes said: “The strategic acquisition of Mainspring adds depth to our service offering for UK venture capital funds, as well as strengthening our existing custody offering for private assets.
“As private equity and venture capital continue to become more accessible to a wider pool of investors, including wealth management clients, we are continuously evolving our single-source solution to offer the administration, custody and reporting services in order to be the best possible partner for our clients.”