Private Equity News & Analysis

Apax realises 26x return from retail exit

The global private equity firm, thanks to its acquisition of buyout firm Saunders Karp & Megrue, has realised a windfall from its holding in Charlotte Russe, a mall staple for budget-minded young women.

By
David Snow
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The global private equity firm, thanks to its acquisition of buyout firm Saunders Karp & Megrue, has realised a windfall from its holding in Charlotte Russe, a mall staple for budget-minded young women.

Apax Partners, the global private equity firm, has realised a roughly 26x return on an investment in Charlotte Russe, a retailer of clothing and accessories for young women.

According to a source close to the transaction, the exit event returned roughly $125 million (€99 million) to Apax. It is being the exit is being realised through a secondary offering of the retailer’s shares, announced today.

The original investment in Charlotte Russe was made by Saunders Karp & Megrue, a US buyout firm that last year was acquired by Apax.

Apax still owns 2.7 million shares in Charlotte Russe, which trades as CHIC on the Nasdaq. The shares closed today at $26.00.

Saunders Karp purchased the San Diego-based retailer in 1996 for an undisclosed amount.