Apis announces Efficient Group exit

Apis Growth Fund I, a private equity fund managed by Apis Partners, has announced its plan to sell Efficient Group to global financial services provider Apex Group.

Efficient is an asset management and advisory firm that provides a range of solutions to the investment management industry, including asset administration services, asset management services, financial products distribution, and professional financial advice to both retail and institutional investors in South Africa. It operates the largest co-branded asset administration platform in South Africa, Boutique Collective Investments (BCI), and a suite of independent financial advisory businesses with a network of more than 200 registered financial advisors servicing almost 100,000 clients across South Africa.

Apis facilitated Efficient’s delisting from the Johannesburg Stock Exchange via a minority shareholder buyout in June 2020. During its ownership, Efficient’s profit after tax increased by more than 400%, while Apis has supported the management team in making several acquisitions that have bolstered the company’s product portfolio.

Prior to completion of the transaction, Efficient will undertake an internal reorganisation which will result in the formation of two independent companies under the control of the current shareholder group. Efficient will retain ownership of BCI, Boutique Investment Partners (BIP) and two other entities, while a newly created holding company will own all the remaining entities, including the independent financial advisory franchises which will continue to function under the Efficient brand.

Apex is one of the largest asset management service providers in the world and the acquisition of BCI and BIP will add $19 billion of asset under administration to the Apex Group platform. The acquired businesses will join Apex’s expanding African footprint following the recent acquisitions of Sanne and Maitland.

Peter Hughes, founder and CEO of the Apex Group, said that the addition of the unit trust management company adds greater product depth and expanded reach, particularly for their ManCo services offering, and further reinforces their commitment to South Africa.

The completion of the transaction is subject to the approval of the Competition Commission of South Africa.