Apax Partners, the London-based private equity firm, is planning to raise €250 million with its first investment company listing on the London Stock Exchange next month, according to a statement.
The global private equity fund has tapped former Legal & General Group plc group chief executive Tim Breedon to manage the listing of Apax Global Alpha (AGA), which is supported by €135 million in investor commitments. Breedon currently serves as non-executive director of Barclays and is lead non-executive director of the Ministry of Justice.
Breedon said of the listing: “The vehicle presents a unique opportunity for stock market investors to benefit from exposure to Apax's excellent investment track record, in addition to the attractive investment opportunities that Apax has identified in asset classes that are not accessible to a traditional buyout fund.”
AGA will invest 50 percent of its capital in primary and secondary commitments to current and future Apax private equity funds, while the remainder will be used to make co-investments or “derived” investments in other asset classes such as debt or public equities; or, transactions that don't fit within the mandate of Apax's global buyout program.
Apax is funding its private equity investments from its Euro and US-dollar denominated eighth €5.8 billion ($7.5 billion) fund.
According to Apax, the listed vehicle's shares will start trading next month. It has a return target of 12 to 15 percent and pays a five percent dividend of its net asset value (NAV). Apax Global Alpha will incorporate an internal employee investment vehicle PCV Lux S.C.A. (PCV) and its subsidiaries established seven years ago (annual 30 percent IRR). As a result, Apax Global Alpha will have a total NAV of €611.1 million.
News of the listing plans comes just days after Apax and Permira agreed to sell their combined 90 percent interest in high street fashion chain New Look to South Africa-based investment company Brait in a deal valuing the chain at around £1.9 billion (€2.6 billion; $3 billion),
Apax Guernsey Managers Ltd. will serve as the entity managing the listed vehicle.