Financial services provider Apex Group is set to take over the alternative fund administration business (MAF) of Banco Modal in Brazil for an undisclosed sum.
The deal brings around BRL70bn ($12bn) in assets under administration and custody to Apex, increasing the group’s assets to $1trn.
Apex already has an office in Uruguay, which was set up in 2013. The latest acquisition bolsters its footprint in Latin America through the addition of Rio de Janeiro and São Paulo offices to Apex.
As part of the deal, 75 Banco Modal employees will join Apex increasing the latter’s staff strength in Americas to more than 400.
The two parties intend to ink a strategic partnership agreement for the provision of depositary and banking services to Brazilian clients. The services can be availed by clients based both domestically, in Europe and the rest of the world.
Banco Modal co-CEO Eduardo Centola said: “Our clients will now have the opportunity to access the Group’s international network and extensive range of products, and we are particularly excited about the value Apex’s pioneering ESG Ratings and Advisory service will bring.”
The takeover, which awaits regulatory nod, is the second by Apex this month. Earlier this month, it announced the acquisition of FundRock. The FundRock deal is expected to close in the first quarter of next year.
Last month, the firm bought UAE-based compliance and risk advisory firm Praesidium Advisory.
Apex founder and CEO Peter Hughes said: “There is a significant opportunity in the LatAm market and we have been looking for the right business in Brazil to complement our global service model.
“MAF is well established in the Brazil fund administration market and is a strong addition to our business, expanding the reach of our single-source model across the Americas and also giving our existing clients direct access to the Brazil market.”