Apax Partners has closed its flagship buyout fund with $7.5
billion in commitments after a two-year fundraising process, during
which the European firm was forced to cut its target by nearly a
third.
Similar to many other firms of its size and scale, the
London-based firm faced a pool of limited partners that were
souring on mega-buyouts and gun-shy about the macroeconomic
environment in Europe.
Based on current exchange rates, the roughly 5.8 billion euro
final tally makes Apax Europe VIII LP around half the size of its
predecessor, one of the largest European buyout funds ever raised.
That fund closed in 2007 with EUR11.2 billion.
The firm launched Apax Europe VIII LP in the summer of 2011 with
a target of EUR9 billion. Although it was able to close on more
than EUR4 billion by March 2012, a lack of demand forced the firm
to scale back its ambitions to EUR6 billion, sister publication
Private Equity News reported earlier this month. Complicating
matters was a mixed track record that included hits like Tommy
Hilfiger Corp., which netted a 4.5 times return, and a loss of
EUR450 million after drug courier Marken Ltd. ended up in the hands
of creditors.
In a reflection of the scaled down fund, the firm moved to cut
staff, and initiated plans to shutter offices in Italy and Spain,
while instigating an effort to open up a Sao Paolo office.
Perhaps a sign of reassurance in the euro, Apax said in a press
release that 51% of the commitments to Fund VIII were made in euros
while 49% were made in dollars. It also said that more than 40% of
the fund came from North American investors, while European
investors provided just 25% of the fund.
(Dow Jones LBO Wire provides coverage of private equity deals,
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