Apis launches AI-focused PE fund

Apis Capital Management has launched Apis Ventures, a private equity fund focused on acquiring and developing companies in the artificial intelligence, machine learning, and neural networks space. Funding has been raised for Apis Ventures but the terms were not disclosed. Apis Ventures will focus on small to medium-sized companies in the $100 million to $500 million range.

PRESS RELEASE

NEW YORK, Nov. 13, 2018 /PRNewswire/ — Apis Capital Management has announced the launch of Apis Ventures, a private equity fund focused on the acquisition and development of companies in the artificial intelligence, machine learning, and neural networks space.

Apis Capital Management operates the ACM Market Neutral Volatility Strategy Fund, powered by innovative strategies combining trading experience with advanced machine learning and neural network algorithms to conduct predictive market analysis. The fund has outperformed the market every year since inception in 2016 and uses a long/short volatility strategy to provide profit opportunities in up-trending, sideways and down-trending markets. Apis Capital Management previously launched Apis Token, a fund with tokenized ownership, which has been listed on the NASDAQ Fund Network under symbol ZAPISX.

“We have identified a significant number of opportunities that are undervalued or do not have the resources to effectively develop their valuable intellectual property,” said Dr. Edgar Radjabli, Managing Partner of Apis Capital Management.

Apis Ventures will focus on small to medium-sized companies in the $100-500 million range, that have unique intellectual property or products and can create synergy dynamics across the portfolio. Apis Ventures’ goal will be to lead companies to profitability by focusing on the applications of AI technology, especially in financial services and capital markets. “We anticipate that we will also integrate some of the technologies we acquire into our own proprietary algorithms and market activities,” said Stephane Kouakou, head of trading application development at Apis Capital Management.

The fund has already raised capital and expects to begin deploying it in the next month. It is further backed by two separate revolving credit facilities allowing it to take on strategic M&A and LBO initiatives.

Dr. Yosin Yakobu, who leads neural network development at Apis Capital Management stated: “We will be adding both intellectual property and talent to Apis through strategic acquisitions, as well as sharing our in-house expertise with portfolio companies to maximize their value.”

Dr. Radjabli would not disclose any specific companies that Apis Ventures would be investing in or acquiring but stated that “we do have a specific list of high strategic value targets, as well as some initial deals in the pipeline, and we will announce those in due course. We have intentionally stayed under the radar, to keep potential targets from becoming overvalued by speculation of interest from Apis.”