Apex Group Ltd announces the acquisition of Pacific Fund Systems (PFS), a global fund administration software business, from co-founders and Pollen Street Capital.
This acquisition follows Apex Group’s longstanding partnership with PFS through the use of PFS-PAXUS and will expand use of the technology platform to enhance the delivery of timely, accurate and independent portfolio accounting, fund and investor reporting, the firm said.
Founded in 1999, PFS supports the investment fund clients via its core PFS-PAXUS product. PFS-PAXUS is a specialist accounting and administration software that fully supports the administration of all manner of open and closed ended traditional and alternative funds, including hedge funds and private equity investment vehicles.
PFS-PAXUS is used by more than 4,000 individual users at over 100 clients managing over $1 trillion of assets under management.
PFS-PAXUS integrates all the processes that are normally performed on multiple systems, including: securities portfolio, allocation system, general ledger, fee calculation, share registry, investor communications and web portal. Benefits of this approach include increased efficiency, reduced risk of error, faster valuations, a simplified technical landscape and the ability to support complex investment structures whilst significantly reducing IT costs.
The expanded product offering will allow Apex Group to act as a single-source provider of services across the entire life cycle of client funds for both existing and acquired PFS clients.
Peter Hughes, Founder and CEO of Apex Group comments: “Through a combination of partnerships with award winning technology providers, as well as our own market leading platforms, we deliver high quality solutions to asset managers globally. PFS-PAXUS is a proven global technology solution for the funds industry that enables our clients and third parties to automate all fund administration components on a single platform. Bringing PFS-PAXUS into the Group will help us to continue exceeding client expectations by delivering a single-source solution which improves administrative efficiencies, implements essential controls, and manages our clients’ operational risk.”
On the other hand, Paul Kneen, CEO of PFS further comments: “PFS is dedicated to providing a first-class global business solution to its clients and we are excited to be joining Apex Group which shares these core principles and objectives. My team and I are looking forward to deepening our relationship with Apex Group, an important existing client of PFS, and a supportive home as we continue to enhance and grow our market leading offering.”
James Scott, Partner at Pollen Street Capital, adds: “Since investing in the business just over two years ago, PFS has gone from strength to strength, recording strong organic growth, recurring revenue and margins. This is a great outcome for PFS and the transaction represents the first exit in our flagship Fund IV. Pollen Street is looking forward to continuing its support of Paul and his excellent management team as well as working alongside Apex Group for the next phase of PFS’s growth.”
Photo courtesyOlivier Paquier, Global Head of ETF Sales of AXA IM
Olivier Paquier is appointed Global Head of ETF Sales of AXA IM, effective immediately.
Paquier has extensive experience in ETF sales from State Street as Head of SPDR ETF distribution in France, Monaco, Spain and Portugal, and then within J.P. Morgan Asset Management where he built their successful active ETF business in EMEA.
In his missions within AXA IM, he will be supported by an ETF business manager and 9 salespeople worldwide who will extend their expertise of selling the AXA IM product range with ETF instruments. Paquier reports to Nicolas-Louis Guille-Biel, Global Head of ETF& Product strategy.
Following the launch of its ETF platform last September , AXA IM continues its journey to build a significant ETF business and grow its footprint on this market.
The AXA IM ETF platform is now centred around three pillars:
1. Products and Capital Markets, with a dedicated product developer and two Capital Markets officers.
2. Investment and Research insights, with ETF portfolio managers getting insights from AXA IM’s Core investment teams.
3. Sales and marketing, with Olivier as new Global Head of ETF Sales, an ETF business manager, a dedicated marketing manager as well as 9 identified salespeople with a global reach.
Commenting on the arrival of Olivier Paquier and the growing ETF platform, Hans Stoter, Global Head of AXA IM Core, said: “We have adopted an entrepreneurial spirit to develop our ETF platform and deliver the project in house, leveraging our internal capabilities with people from different teams, as well as additional skills with external recruitments to continuously strengthen our ETF community. We have now reinforced our ETF distribution value chain and are delighted to welcome Olivier, one of the most recognised ETF professionals in the industry.
Fund Distribution Services (FDS) has reached an agreement with Polar Capital to offer their strategies into the US Offshore and Latin American market.
Polar Capital is an experienced, investment-led, active fund manager. The company prides itself on its collegiate and meritocratic culture where capacity of investment strategies is managed to enhance and protect performance. Since its foundation in 2001, it has grown steadily and currently has 15 autonomous investment teams managing specialist, active and capacity constrained portfolios, with combined AUM of $22.4 billion (as of December 31, 2022), said the firm in a press release.
“Polar Capital’s distribution strategy is growth with diversification, by both client segment and geography, and we see significant opportunities outside of our home markets of the UK and Continental Europe. Our approach to wider global expansion is both targeted and measured. We are delighted to be partnering with FDS in the US offshore and Latin American markets,” said Iain Evans, Head of Global Distribution, Polar Capital.
In addition, Evans told that FDS team “brings a wealth of experience and long-standing investor relationships in these markets, and they are the perfect complement to work alongside our existing North American distribution team.”
“Partnering with Polar gives our clients access to highly skilled, specialized managers that deliver an experience that you would expect from a strong boutique, investment led, organization,” added Lars Jensen, Managing Partner FDS.
The Federal Reserve Board provided additional details on how its pilot climate scenario analysis exercise will be conducted and the information on risk management practices that will be gathered over the course of the exercise.
As described in the instruction document, Bank of America, Citigroup, Goldman Sachs, JPMorgan, Morgan Stanley y Wells Fargo will analyze the impact of scenarios for both physical and transition risks related to climate change on specific assets in their portfolios, the release said.
To support the exercise’s goals of deepening understanding of climate risk-management practices and building capacity to identify, measure, monitor, and manage climate-related financial risks, the Board will gather qualitative and quantitative information over the course of the pilot, including details on governance and risk management practices, measurement methodologies, risk metrics, data challenges, and lessons learned.
“The Fed has narrow, but important, responsibilities regarding climate-related financial risks – to ensure that banks understand and manage their material risks, including the financial risks from climate change,” Vice Chair for Supervision Michael S. Barr said. “The exercise we are launching today will advance the ability of supervisors and banks to analyze and manage emerging climate-related financial risks.”
The pilot exercise includes physical risk scenarios with different levels of severity affecting residential and commercial real estate portfolios in the Northeastern United States and directs each bank to consider the impact of additional physical risk shocks for their real estate portfolios in another region of the country. For transition risks, banks will consider the impact on corporate loans and commercial real estate portfolios using a scenario based on current policies and one based on reaching net zero greenhouse gas emissions by 2050.
These scenarios are not forecasts or policy prescriptions, but can be used to build understanding of climate-related financial risks.
The Board anticipates publishing insights gained from the pilot at an aggregate level, reflecting what has been learned about climate risk management practices and how insights from scenario analysis will help identify potential risks and promote effective risk management practices. No firm-specific information will be released.
Climate scenario analysis is distinct and separate from bank stress tests. The Board’s stress tests are designed to assess whether large banks have enough capital to continue lending to households and businesses during a severe recession. The pilot climate scenario analysis exercise, on the other hand, is exploratory in nature and does not have capital consequences.
Photo courtesyJoseph Pinto, CEO of Asset Management at M&G AM.
M&G plc announces the appointment of Joseph Pinto as its next Chief Executive Officer of M&G Asset Management.
Joseph will have accountability for all investment capabilities including the equity, fixed income, multi asset, private and alternative asset strategies alongside distribution, operations and proposition management across the Asset Management business.
Andrea Rossi, Group Chief Executive, M&G plc said: “M&G’s purpose is to help people manage and grow their savings and investments responsibly. Joseph brings to M&G a profound understanding of client needs and how they have evolved through changing economic conditions. He has a strong record of delivering on strategic ambitions in investment management, and I am confident his combination of commercial vision and pragmatic leadership will help transform how M&G delivers value to its clients and other stakeholders.”
With 30 years of experience in asset management, financial services, and consulting, Joseph joins from Natixis Investment Managers where he has served as a Head of Distribution and Investment Solutions for EMEA, APAC and LATAM and Global Chief Operating Officer.
Previously at AXA Investment Managers for 13 years, Joseph held senior positions, including Global Chief Operating Officer, Global Head of Markets & Investment Strategy and Head of Business Development for South Europe and the Middle East.
Joseph joins in March 2023 and will become a member of M&G’s Executive Committee, reporting to Chief Executive, Andrea Rossi. He is succeeding Jonathan (Jack) Daniels who, in July 2022, announced his intention to retire following 21 years with the business.
“The breadth of M&G’s active asset management capabilities combined with its strong balance sheet, has long provided innovative solutions for clients. I look forward to leading their respected investment teams to drive M&G’s international growth and sustainability agenda, while providing excellent outcomes for clients,” said Joseph Pinto, incoming Chief Executive Officer Asset Management, M&G plc.
The appointment is subject to regulatory approval.
Photo courtesyFabrice Chemouny, Head of International Distribution for Natixis IM
Fabrice Chemouny is appointed Head of International Distribution for Natixis Investment Managers, overseeing client and development activities for EMEA, APAC and LATAM. He was previously Head of Asia Pacific at Natixis Investment Managers and has more than 20 years of experience in asset management.
In addition, Christophe Lanne, Chief Administration Officer for Asset & Wealth Management, will oversee post-sales support activities for international distribution, as well as Natixis IM Solutions activities, in addition to his existing responsibilities for global operations and technology, human resources and corporate social responsibility strategy.
Fabrice Chemouny and Christophe Lanne will both report to Tim Ryan, Head of Asset & Wealth Management within Groupe BPCE’s Global Financial Services and will continue to serve on the Management Committee of Asset & Wealth Management.
“We remain committed to becoming the most client-centric asset and wealth manager, delivering the best experience for our clients throughout their investment journey. Fabrice and Christophe bring their robust experience and expertise to Natixis Investment Managers’ commercial development and operational excellence, in the benefits of our clients”, said Tim Ryan, Head of Asset & Wealth Management within Groupe BPCE’s Global Financial Services.
Fabrice Chemouny joined Natixis from CDC IXIS Group in 2000 as Senior Analyst in the Strategy Department. In 2003, Fabrice was appointed Executive Vice President, Head of International Strategy & Marketing at Natixis Investment Managers before becoming Head of Business Development and Affiliate Coordination. He was then appointed Executive Vice President, Global Head of Institutional Sales. In 2017, Fabrice became Head of Asia Pacific for Natixis Investment Managers.
Christophe Lanne began his career in 1990 with Banque Indosuez (now Crédit Agricole Corporate and Investment Bank) in the General Inspection department. In 1995, he first joined Global Markets in Paris, and later was named Head of Global Markets activities for the London platform. After holding several senior positions in Paris, in 2002 he became CEO of Crédit Agricole Indosuez Securities Japan and Head of Global Markets. Christophe joined Credit Suisse in 2005 as Managing Director and COO for France. He joined Natixis in 2010 as COO for Corporate & Investment Banking. He became Chief Risk Officer for Natixis in 2015, before joining Asset & Wealth Management in 2018 as Chief Transformation & Talent Officer and was appointed Chief Administration Officer in 2021.
KKR and Altavair L.P. announced that KKR is making an additional $1.15 billion commitment to expand its global portfolio of leased commercial aircraft in partnership with Altavair.
The investment will come from KKR’s credit and infrastructure funds.
KKR has deployed and committed $1.7 billion of capital into aircraft deals since forming a partnership with Altavair and acquiring an interest in the company in 2018.
KKR, in partnership with Altavair, has acquired more than 90 commercial and freighter aircraft through a variety of transactions, including lessor trades, airline direct used and new delivery sale leasebacks, structured transactions and passenger-to-freight conversions and has successfully leased more than 75% of the portfolio to tier-one airlines and operators around the world.
“We are thrilled to deepen our footprint in aircraft leasing through this new commitment, which underscores the conviction that we have in this space and our confidence in Altavair as a partner,” said Dan Pietrzak, KKR Partner and Co-Head of Private Credit. “We look forward to growing our portfolio further to support the fleet needs of airlines and operators around the world.”
“Airlines are increasingly seeking greater liquidity and fleet flexibility, which is creating significant opportunities for high quality leasing teams with deep access to private capital,” said Brandon Freiman, KKR Partner and Head of North American Infrastructure. “We are proud to serve this growing need in partnership with Altavair.”
“Aircraft leasing continues to be a dynamic and growing market that offers compelling and differentiated opportunities for experienced investors,” said Steve Rimmer, CEO of Altavair. “The portfolio that we’ve created over the past several years further evidences the power of combining KKR’s quality capital and capabilities with Altavair’s deep technical and aircraft investing expertise and innovation. We greatly appreciate KKR’s ongoing trust in our platform and look forward to building further on this success in the years to come.”
KKR has invested approximately $8.3 billion of capital in the aviation sector since 2015. Investments include Altavair, AV AirFinance, Atlantic Aviation, KKR DVB Aviation Capital, K2 Aviation, Wheels Up, Global Jet Capital and Jet Edge, among others.
AXA Investment Managers (AXA IM) announces the launch of the AXA WF ACT Plastic & Waste Transition Equity QI fund which supports, on the long-term, the United Nations Sustainable Development Goals (UN SDGs), in particular the SDG 12, Responsible consumption and production, by investing in companies that are limiting or managing in a sustainable way their plastic use or have efficient waste management practices.
Managed by the AXA IM Equity QI team, responsible for AXA IM’s quantitative equity capabilities, the fund invests in companies that are UN SDG 12 aligned, for example through the actions they are taking in their operations, such as production processes, recycling rates and supply chain management, to limit or manage in a sustainable way their plastic and waste footprint or because the company provides products that directly support responsible consumption and production.
The fund invests in large, mid and small cap companies across developed and emerging markets. The selection and weightings of the stocks is based on a proprietary quantitative process that incorporates both financial and non-financial data with the objective of identifying fundamental drivers of risk and return whilst structuring the portfolio in a way that meets the fund’s SDG objectives. As an example, the management team uses Natural Language Processing (NLP) to increase exposure to companies that are actively articulating a plastic or waste approach in their earnings calls.
The fund forms part of AXA IM’s ACT range. It harnesses both external and internal data (including AXA IM qualitative SDG insights) to measure positive contributions of the companies to the UN SDG 12.
Commenting on the launch of the fund, Jonathan White, Head of Investment Strategy & Sustainability in AXA IM Equity QI team, said:“Companies that are reducing waste and supporting a more sustainable approach to their use of plastic play a key role in the effort to mitigate climate change and stem biodiversity loss.
We expect the next few years to be pivotal in plastics pollution mitigation driven by both government regulation and changing end-consumer preference. These structural trends are likely to drive significant growth in segments of the markets such as sustainable packaging and plastic recyclying.
As such its our view that companies that are facilitators or leaders in waste management and plastic-use are not only sustainable investments but could also be an attractive long term investment opportunity.”
The fund is or will be registered and available to professional and retail investors in Austria, Belgium, Denmark, France, Germany, Italy (institutional only), the Netherlands, Norway, Portugal, Spain, Sweden, Switzerland and the United Kingdom.
Snowden Lane Partners and Estancia Capital Partners (“Estancia”), announced that Snowden Lane secured a new $100 million credit facility.
The new facility replaces a facility originally secured with ORIX Corporation in 2018 and subsequently expanded in early 2022. The $100 million of available credit will enable Snowden Lane to significantly bolster its recruiting momentum and position itself for sustained growth through 2023 and beyond.
In 2021, Snowden Lane recruited $2.4 billion in client assets and 13 advisors, and in 2022 the firm recruited over $1.5 billion in client assets and 10 advisors, making it one of the fastest-growing firms in the independent RIA space. Snowden Lane currently services ~$9 billion in client assets.
“We’re excited to kick off the new year with this announcement, as this additional, non-dilutive capital will allow us to execute our vision for the firm’s next stage of growth,” said Rob Mooney, Managing Partner & CEO of Snowden Lane Partners. “We are extremely grateful for Estancia’s support. Estancia continues as a committed partner since the early days of our business and played a crucial role helping Snowden Lane realize its potential. We look forward to continuing our shared success in the coming year.”
Takashi Moriuchi, Managing Director and Co-Founder of Estancia added: “Estancia’s most important investment criteria is always partnering with companies who have experienced management teams capable of executing on their growth strategy and maximizing value. Snowden Lane and its executive team is a prime example of why this is so important. Under the management team’s leadership, the firm rapidly become a key player in the independent wealth management space and is an attractive destination for advisors seeking a full-service alternative to the wirehouses. As Snowden Lane’s partner, we believe this financing provides even more support for management to continue attracting amazing financial advisors leading to even greater growth.”
Since its founding in 2011, Snowden Lane has built a national brand, attracting top industry talent from Morgan Stanley, Merrill Lynch, UBS, JP Morgan, Raymond James, Wells Fargo, and Fieldpoint Private, among others, the firm said.
Similarly, Estancia raised $420 million in committed capital and nearly $150 million in co-investment capital across two funds, completed 14 platform investments and 18 add-on investments over the last decade.
Snowden Lane employs 132 total professionals, 72 of whom are financial advisors, across 12 offices around the country: Pasadena and San Diego, CA; New Haven, CT; Coral Gables, FL; Chicago, IL; Pittsburgh, PA; Baltimore, Salisbury and Bethesda, MD; San Antonio, TX; Buffalo, NY, as well as its New York City headquarters.
In connection with the new facility, Apogem Capital served as joint lead arranger, joint bookrunner, and administrative agent. Monroe Capital also served as joint lead arranger and joint bookrunner.
Franklin Templeton has announced that effective March 31, 2023, Manraj Sekhon will assume the role of CIO of Templeton Global Equity (TGEI), leading both Templeton Global Equity Group (TGEG) and Franklin Templeton Emerging Markets Equity (FT EME), following the departure of Alan Bartlett, CIO of TGEG, who will be leaving the firm to move on to the next phase of his career.
As announced in early 2022, Manraj Sekhon was named head of Templeton Global Equity Investments (TGEI), which combined the businesses of Franklin Templeton Emerging Markets Equity (FT EME) and Templeton Global Equity Group (TGEG) under a single umbrella, while retaining the integrity of their respective investment philosophies and processes and continuing to share best practices.
“Sekhon is a seasoned investor and investment executive, who has been leading FT EME for the past five years, since joining as its CIO in 2018. He has more than 25 years of experience researching and investing in global and international markets and managing investment teams and processes,” the firm said.
In his expanded role, Sekhon will have CIO responsibilities for both groups and will be supported by the respective Management Committees of FT EME and TGEG, which have representation from senior investment and business leaders, who manage day-to-day investment and business development activities and work jointly to set the strategic direction of the two teams.
“We expect this change to be seamless for our clients, as day-to-day investment decision making for both teams remains unchanged. Bartlett is not a named portfolio manager for any TGEG strategies or portfolios,” the press release added.
Franklin Templeton Emerging Markets Equity consists of over 70 investment professionals across 13 offices globally, and manages USD 30 billion in global, regional, single-country, small cap, frontier and specialty strategies as of November 30, 2022.
Templeton Global Equity Group consists of 38 portfolio managers and analysts located across seven offices globally, and manages USD 36 billion in Opportunities, Select, Sustainability, Balanced, Leaders, Asia Pacific, Europe, and Small Cap strategies as of November 30, 2022.
