Apax Digital Fund II holds USD 1.75bn final close

Harriet Matthews
24 September 2021

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London-headquartered Apax Partners has held a final close for Apax Digital Fund II on USD 1.75bn.

Apax Digital II was launched in June 2021 and had a USD 1.5bn target. Apax said in a statement that the fund took less than four months to reach its hard-cap of USD 1.75bn.

HMC Itajubá acted as placement agent, according to Unquote Data.

Apax's first Digital Fund held a final close in December 2017 on its USD 1bn hard-cap. The fund has made 14 investments.

The GP held a final close for Apax X, the latest fund in its large-cap buyout strategy, in January 2021 on USD 11bn. The fund has since backed deals including the EUR 1.5bn SBO of Germany-based optical lenses and glasses frames producer Rodenstock from Compass Partners, followed by the EUR 5.1bn acquisition of T-Mobile Netherlands alongside Warburg Pincus earlier in September 2021.

Technology-focused funds have seen a boom in LP interest over the course of the coronavirus pandemic. In the mid-cap segment, Capza announced the first close of its debut Growth Tech Fund. Upcoming funds including Advent Global Technology II, which was registered by Advent with a USD 3bn target in March 2021, according to Unquote Data, while US-headquartered Providence Equity Partners launched Providence Strategic Growth V in April 2021.

Investors
The fundraise saw a strong re-up rate, Apax said in a statement. LPs in Apax's first digital fund included several US public pension funds, as well as Canada Pension Plan Investment Board (CPPIB), according to Unquote Data.

According to Unquote Data, LPs that have committed to Apax Digital II also include US pension funds, as well as a USD 90m commitment from Apax Global Alpha.

Investments
Apax Digital Fund II will continue the strategy of its predecessor, backing high-growth technology companies in sub-sectors including software, internet and technology-enabled services. The fund will invest on a global basis, taking minority stakes via growth deals, as well as backing buyouts for growing technology companies.

Apax's first Digital Fund invested USD 30m-150m per deal, with a sweet spot of USD 50m-75m. According to its website, Apax's Digital strategy can make equity investments of USD 50m-200m per company.

Apax's technology-focused strategy has backed companies including Germany-based pricing optimisation software Pricef(x) and Finland-based digital consultancy Solita, as well as UK-based mobile bank Tide.

People
Apax Partners – Dan O'Keefe, Marcelo Gigliani (managing partners).