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Apax raises $1 bln for tech growth investments

  • Apax hits $1 bln hard cap on tech fund
  • Launched earlier this year
  • Focus on minority, buyouts in software, internet, tech-enabled services

Apax Partners raised $1 billion for its debut tech fund, holding a first close on the fundraising, the firm told limited partners in a recent letter.

The U.K.-based firm is one of several raising money to make growth investments in the tech sector, including fellow U.K. buyout shop Permira, which is talking to LPs about targeting up to $2 billion for a tech growth pool.

Whether Apax will continue raising capital for the vehicle, called Apax Digital Fund, is unclear. Fundraising launched earlier this year with an $800 million target and a $1 billion hard cap.

The fund, co-led by Managing Partners Marcelo Gigliani and Daniel O’Keefe, focuses on minority investments and buyouts in global high-growth software, internet and tech-enabled services businesses.

Gigliani joined Apax in 1999 and O’Keefe rejoined the firm last year from Technology Crossover Ventures, where he was a partner focused on investment in digital businesses.

Apax closed its ninth buyout fund on its $9 billion hard cap in December.

The firm joins several other firms that have raised money for tech-oriented growth pools, including Permira, Aquiline Capital, Thoma Bravo and Kohlberg Kravis Roberts, which closed its KKR Next Generation Tech Growth Fund on $711 million in December.

The Financial Times reported on the close earlier.

Update: This story was updated to clarify the original target was $800 million.

Action Item: Check out Apax’s Form ADV here: http://bit.ly/2xbxuns

Photo courtesy of EmirMemedovski/E+/Getty Images