Apax sets $9bn hard-cap on Fund IX

The firm has amassed $7.9bn for the vehicle, which held a $7bn initial close last month.

Apax Partners has set a $9 billion hard-cap on its latest flagship buyout fund, according to sources familiar with the matter.

Apax IX, which had an initial target of $7.5 billion, has already garnered commitments totalling $7.9 billion, the source added.

The news that Apax had collected $7.9 billion and informed investors last week that it had held a first close for the fund was first reported by Bloomberg.

Apax declined to comment on fundraising.

The firm held an initial close on Apax IX on 20 May, with commitments reaching $7 billion, as reported by Private Equity International. The initial close allowed the firm to begin investing the fund.

Apax is offering LPs in Fund IX the choice of either a deal-by-deal carried interest distribution or the more typical European-style fund model, in which carry is not distributed until all drawn down capital is repaid to investors and the preferred return is met. It is understood that investors opting for the deal-by-deal structure will receive a discount on the management fee.

Apax IX is already larger than its predecessor, the 2012-vintage Apax VIII, which closed on $7.5 billion in June 2013. That fund was initially targeting $11.9 billion, as reported by PEI.

Apax has returned a total of $18 billion to its investors since January 2014 through a string of exits which have delivered an average gross money on invested capital of more than 3x and an average gross internal rate of return of 27 percent, according to sources familiar with the matter.

Apax is one of several European mega-firms that have been on the fundraising trail recently. Today Cinven announced a final close on its latest flagship vehicle, the Sixth Cinven Fund, on its €7 billion hard-cap. Meanwhile BC Partners is still on the road seeking €7 billion for its tenth vehicle, and Permira is looking to raise €6.5 billion for its sixth flagship fund, as reported by PEI.