The partnership aims to develop a fully digital, globally scalable custody and clearing solution for advisors and the clients they serve.
State Street has announced a strategic partnership with Apex Fintech Solutions that includes taking a minority stake in the digital custody and clearing platform, marking the latest move by the Boston-based financial giant to deepen its reach into the global wealth management market.
The deal, unveiled Wednesday, will see State Street leverage Apex’s technology to broaden its wealth services for advisors and self-directed platforms.
Apex, which supports more than 200 clients and 22 million brokerage accounts holding over $200 billion in assets, is known for its flexible, API-driven infrastructure that powers a wide range of digital investing experiences for RIAs, fintechs, and wealth managers .
The partnership aims to deliver a fully digital, globally scalable custody and clearing solution for advisors and their clients. State Street will bring its institutional infrastructure and global client base – including $3 trillion in enterprise assets reported through Charles River Development Wealth and another $1 trillion plus in wealth-related assets over at State Street Investment Management – while Apex contributes its digital-first platform and expertise in automating complex back-end processes for wealth firms.
John Plansky, executive vice president and head of State Street wealth services, said the partnership “augments our wealth services capabilities and positions us to bring the same level of focus and execution excellence, as we provide technology and services to the growing global wealth customers’ investment goals.”
Bill Capuzzi, chief executive officer of Apex Fintech Solutions, said the collaboration is about enabling the advisor-based market to “launch, scale and innovate at unprecedented speed.”
The move comes as State Street, which boasts $49 trillion in assets under custody or administration as of June 30, accelerates its expansion into wealth technology. Over the past year, the firm has taken minority stakes or entered partnerships with several fintech and wealth tech firms.
In July last year, State Street joined a coalition of strategic investors in the take-private acquisition of Envestnet, alongside Bain Capital, Fidelity Investments, and Franklin Templeton. The company has also announced a partnership with iCapital to enhance alternative investment access for advisors, and has allied with Apollo Global Management to launch private-credit ETFs targeting retail and RIA channels, a venture which faced a tepid initial response.
Apex, for its part, has continued to broaden its reach among US advisors and wealth firms. The company’s platform is used by hundreds of clients, including RIAs, banks, and fintechs, to serve millions of investors. In February, Apex announced the launch of Apex Alts, a solution designed to make alternative investments accessible through standard brokerage accounts, and rolled out advanced direct indexing capabilities for advisors seeking greater portfolio customization and tax efficiency. Before that was its acquisition of AdvisorArch in March last year, which Capuzzi at the time said would give advisors “access to the most advanced, customizable, and scalable rebalancing and direct indexing solution on the market.”
The State Street–Apex partnership is expected to help advisors and wealth firms compete in a market where digital infrastructure and seamless client experiences are increasingly essential. “Wealth management is on the precipice of enormous change driven by rapid market innovation and investor expectations,” Capuzzi said in the statement.