London-headquartered firm Apax Partners is making major cuts in its resources as it works to reach its €9 billion target for Fund VIII.
The firm has cut 10 percent of its staff, according to a market source. The firm, which originally had 110 employees, will be reduced to 99, with 11 investment professionals leaving the firm.
Apax also is closing its offices in Southern Europe. Its Milan office closed at the end of last year and the Barcelona office is in the process of shutting down. It also is reducing its office space in London; the firm will be sub-leasing two of its five floors, but it is planning to open an office in Brazil.
It is understood the measures have been taken as the firm is adapting to a difficult market environment. Apax is still on the road to raise its eighth fund, which already has a lower target than the €11.2 billion it raised for the predecessor vehicle in 2007. Apax VIII held a €4.3 billion first close in March 2012. The firm is contractually required to hold a final close at the end of June 2013.
Apax is not the only firm struggling in the challenging economic environment in Europe. Earlier this month, Permira cut its fundraising target for Fund V by nearly a quarter; from €6.5 billion to between €4 billion and €5 billion. In February, Nordic Capital held a €1.7 billion first close, after reducing its target from €4 billion to €3 billion last October.