Apax France closes ninth fund on €1bn hard-cap

The final close means Apax France IX is the largest buyout fund raised by a French investor since Ardian's €4.5bn effort in September last year.

Launched in late 2015 with a target of €750m, Apax IX held a first close in April 2016 with €600m, a source familiar with the matter told unquote".

It is the largest fund ever raised by Apax France, and a significant step-up from its predecessor, Apax France VIII, which closed on €700m in 2011 having launched before Lehman's collapse in 2008. The rough financial climate led Apax to halt the fundraising effort in 2009. With a €700m target, it held a first close on €500m in March 2010 and a further interim close on €600m in February 2011.

Apax enlisted the help of London-based placement agent Rede Partners to advise on the fundraise. On the legal side, the GP worked with Willkie Farr (general fund adviser and coordinator), Moses & Singer (legal US adviser), Reed Smith (tax adviser) and Paul Hastings (equity bridge).

The fund has a 10-year lifespan with a three-year extension period, and a five-year holding period. 

Investors
Around 84% of Apax France's previous investors recommitted capital in Apax IX, the same source told unquote".

The source added that, after being approached repeatedly by family offices, Apax decided to open up the fund to the LP type. The capital for Apax IX is thus spread as follows: 20% from funds-of-funds; 30% (or €306m) from Altamir, a listed vehicle and serial backer of Apax funds; 30% from pension funds; and the remaining 20% from a mix of family offices, insurance companies and banks. 

Aside from historical investors, Apax IX received the support of around 20 new LPs, the GP said. The LP base primarily comprises pension funds, funds-of-funds, insurers and family offices. In terms of geographies, French investors account for nearly half (49%) of the LP base, with 31% from the rest of Europe and 20% hailing from North America.

Investments
As with previous vehicles, Apax France IX will target high-growth businesses valued between €100-500m, with a focus on France, Benelux and Switzerland. Tickets will typically range from €50-200m per transaction, with co-investment possibilities for LPs. Target sectors will include telecoms, media, technology, retail, consumer goods, business and financial services, and healthcare.

The fund, which aims to complete a dozen investments, is already 23% deployed via three deals, all signed last year. In March, Apax made a binding offer to acquire network performance software developer InfoVista from American GP Thoma Bravo. In June, Apax completed the acquisition of Marlink, Airbus Group's commercial satellite communications business, in a deal that was first inked in December 2015. The GP also invested in Sandaya, an outdoor accommodation group active in France and Spain, in May. LPs in the fund co-invested €190m as part of these three transactions. 

The three acquisitions were financed thanks to a €300m equity bridge financing from Crédit Agricole CIB, provided after the fund's first close in April 2016. 

Apax France will conintue to adopt the buy-and-build strategy it has largely applied to its portfolio companies. Over the last year alone, 19 build-ups were completed by the GP, including Europe Snacks, Inseec, InfoVista and Marlink, the same source told unquote". 

Apax expects the vehicle to be fully deployed over the next three to four years.

People
Apax France – Eddie Misrahi (CEO).

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