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Audax Fund V holds final close on $2.25bn

Fund V, which exceeded its $1.75bn target, will follow its predecessor’s strategy of seeking investments in middle market companies with $5m-$35m EBITDA.

Middle market firm Audax Group held a final close of its Audax Private Equity Fund V on its $2.25 billion hard cap, surpassing its target of $1.75 billion, the firm said.

Commitments to Fund V came from “a select group of institutional and high-net worth limited partners,” the firm said, resulting in the oversubscription. Audax’s senior professionals also contributed “a significant commitment,” it said.

A source close to the matter told Private Equity International that Fund V issued a private placement memorandum around 1 June and held a first close in August.

The fund received capital from the Pennsylvania State Employees’ Retirement System, the Virginia Retirement System, which committed $125 million, and Denmark’s PKA Alternative Investment Partners, which committed $17.9 million, according to PEI’s Research & Analytics division.

Its predecessor, Audax Private Equity Fund IV, closed on $1.25 billion in December 2012, exceeding the $1 billion target. Fund IV received commitments from asset manager AlpInvest Partners, John D. and Catherine T. Macarthur Foundation, fund of funds manager RWB Private Capital Fonds, corporate pension fund Partners Healthcare System, Munich Private Equity Partners and PKA AIP, among others, according to PEI research.

The source told PEI that Fund IV is substantially invested, with ophthalmic instruments provider Katena Products, cutting tools provider Techniks Industries, which it acquired from Tenex Capital Management, and industrial safety products manufacturer Justrite Manufacturing Company in its portfolio, among others.

The firm said Fund V follows the previous funds’ strategy by seeking investments in middle market companies in various sectors with EBITDA between $5 million and $35 million. It also pursues Audax’s buy & build strategy of accelerating organic growth through add-on acquisitions, according to the firm’s website.

In April this year, Audax launched its Audax Mezzanine Fund IV targeting $1 billion, according to PEI data.

Audax manages over $9 billion in assets and has offices in Boston, New York and Menlo Park.