Carlyle, Goldman Sachs give $1.6bn boost to Apex

Carlyle Group and Goldman Sachs will inject more than $1.66 billion into challenger administrator and custodian Apex Group to support its growth ambitions.

The commitments have been made by Carlyle's global credit business and Goldman Sachs Private Credit, committing to Holdco PIK Notes of Apex. Both are already invested in Apex, having first done so in 2020 and again in 2021.

Apex said the commitments will support its plans, which include optimising its current platform, strategy and combined investment in technology innovation. Upon completion of the transaction, Apex will have an enhanced financial profile, both in terms of leverage and liquidity, it added.

"This commitment endorses Apex's sustainable growth strategy, following the successful integration of a number of previous acquisitions, continued strong organic growth and technological innovations," Apex said.

Commenting further, Apex founder and chief executive Peter Hughes said: "We are extremely pleased to further expand our relationship with Carlyle 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."

Apex's assets on platform now sits at more than $4.66 trillion across custody, administration, depositary and under management. It has more than 13,000 employees in 50 jurisdictions.

As at December 2023, Apex had some $206.8 billion in assets under custody and administration in Australia, rising almost 17% since June 2023.

According to the Australian Custodial Services Association, this pegs Apex as the seventh largest custodian and administrator in the nation. However, it's possible Apex has since moved up the ranks when accounting for the wind down of NAB Asset Servicing.