Apax eyes H1 return with latest mega-fund

The buyout shop is expected to target around $10bn for Apax X, Private Equity International has learned.

Apax Partners is expected to target around one-third more than that of its previous flagship fund with its latest fundraise, Private Equity International has learned.

The London-headquartered firm will return to market early this year with Apax X seeking around $10 billion, according to a source with knowledge of the firm. Apax closed Fund IX, a 2016-vintage, on its $9 billion hard-cap and above its $7.5 billion target, PEI data show.

Apax declined to comment.

Fund IX attracted 44 percent of its capital from North American LPs, 23 percent from Asia and 21 percent from European investors, according to a December 2016 statement. The California State Teachers’ Retirement System, Finland’s Elo Mutual Insurance Company and Washington State Investment Board were among the LPs, PEI data show.

Apax’s flagship funds specialise in global tech and telecommunications, services, healthcare and consumer sectors. Its portfolio includes US payroll software company PayCor, Indian medical device specialist Healthium MedTech and Chinese securities firm Guotai Junan Securities, according to its website.

The firm had raised $51 billion as of December 2017.

This year is shaping up to be a bumper one for mega-funds. Advent International GPE IX is the largest vehicle on the fundraising trail, with the Boston-headquartered firm understood to be targeting $15 billion to $17.5 billion. It is expecting to hold a one-and-done in the second quarter of this year, PEI reported in December.

Apax will be joined in Europe by compatriots Cinven, which is expected to seek at least €8 billion for its seventh fund, and Permira, which raised €7.25 billion for its 2016-vintage Fund VI.