The financial services firm has adopted a pioneering approach, aiming to expand investor access and increase fund distribution and administration efficiency.
Apex Group has become the first transfer agent and fund service provider to administer regulated securities, using blockchain as the book of record. This ground-breaking approach enables global private market funds to access a more diverse and significantly larger pool of qualified investors.
In partnership with Hamilton Lane and Sygnum Bank, Apex Group created a new digital share class of the Hamilton Lane GPA fund, and a DLT registry, to automate and integrate traditionally separate fund administration functions. Tokenisation of the fund creates a digital share class, and a DLT registry to manage its distribution and administration.
Apex Group is regulated by the Commission de Surveillance du Secteur Financier (CSSF) in Luxembourg, to manage investor onboarding (AML/KYC), subscription, administration, and transfer agency of a fund’s traditional, and now digital share classes. Apex Group will increasingly utilise this operating model for all of its asset management clientele, in turn enabling them to sell more of their product.
Peter Hughes, Chief Executive Officer of Apex Group, said:
“This is a game-changer for Apex Group, and the industry as a whole. We are focused on disrupting traditional practices in order to drive positive change throughout the financial services sector and this is an example of optimising technology for industry advancement.”
Bruce Jackson, CFA, Apex Group Chief of Digital Asset Funds and Business also commented:
“Our goal is to enable distributors and wealth managers to have increased access to our clients’ alternative strategies. We will continue to perfect our Framework Operating Model for the distribution of alternative asset funds using blockchain as the subscription, onboarding, operating, administration, and transfer agency platform.”
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