Key Takeaways
- • Audax Private Equity closed Audax Private Equity Fund VII, its flagship fund, at its hard cap of $5.25 billion, which the firm describes as oversubscribed.
- • Audax Private Equity Origins Fund I closed above target at $774 million, the debut fund for the firm's lower middle market strategy.
- • Including an additional $1.8 billion from GP co-investment vehicles, Audax has $7.8 billion of equity to deploy across the middle and lower middle markets.
- • The combined Audax commitment represents approximately 30% of total LP commitments across both funds, and investors were domiciled in 31 countries.
Summary
Audax Private Equity, a Boston and San Francisco-based middle market investment firm and part of Audax Group, has closed two new funds with combined commitments that give it $7.8 billion of equity to deploy across North American middle and lower middle market companies, according to a Business Wire release dated July 11, 2023. Audax Private Equity Fund VII, the flagship vehicle, hit its hard cap of $5.25 billion. Audax Private Equity Origins Fund I closed on $774 million in commitments, above its target, and serves as the firm's first lower middle market strategy.
The firm said the $7.8 billion total includes an additional $1.8 billion available through GP co-investment vehicles, which represents approximately 30% of total LP commitments across both funds. Since its inception, Audax Private Equity has committed $4.1 billion to invest alongside its LPs. Commitments came from a mix of public and private pensions, endowments and foundations, sovereign wealth funds, insurance companies, high-net-worth investors and family offices. Existing LP relationships accounted for a substantial majority of the capital raised, and investors were domiciled in 31 countries across the two funds.
The funds will pursue Audax's strategy of investing in North American platforms across six core specializations: Business Services, Consumer, Financial Services, Healthcare, Industrial Services & Technologies, and Software & Technology. Fund VII has deployed approximately $1.3 billion across seven platform investments, and Origins Fund I has deployed just over $195 million across three platforms. In the first half of 2023, Audax completed four new platform investments and 48 add-on acquisitions across its 57-platform portfolio, ahead of its year-ago pace.
Young J. Lee, Co-President of Audax Private Equity, attributed the fundraises to the firm's 20-plus years of middle market focus, its team's tenure, and its Buy & Build strategy. Co-President Keith Palumbo said the firm's scale and strategic resources give middle and lower middle market companies a competitive advantage. Geoff Rehnert, Executive Chairman of Audax Private Equity and Co-CEO of Audax Group, said the firm has maintained a consistent presence in the North American middle market since its 1999 founding. Kirkland & Ellis, LLP served as legal counsel for the concurrent fundraises.
The firm said the $7.8 billion total includes an additional $1.8 billion available through GP co-investment vehicles, which represents approximately 30% of total LP commitments across both funds. Since its inception, Audax Private Equity has committed $4.1 billion to invest alongside its LPs. Commitments came from a mix of public and private pensions, endowments and foundations, sovereign wealth funds, insurance companies, high-net-worth investors and family offices. Existing LP relationships accounted for a substantial majority of the capital raised, and investors were domiciled in 31 countries across the two funds.
The funds will pursue Audax's strategy of investing in North American platforms across six core specializations: Business Services, Consumer, Financial Services, Healthcare, Industrial Services & Technologies, and Software & Technology. Fund VII has deployed approximately $1.3 billion across seven platform investments, and Origins Fund I has deployed just over $195 million across three platforms. In the first half of 2023, Audax completed four new platform investments and 48 add-on acquisitions across its 57-platform portfolio, ahead of its year-ago pace.
Young J. Lee, Co-President of Audax Private Equity, attributed the fundraises to the firm's 20-plus years of middle market focus, its team's tenure, and its Buy & Build strategy. Co-President Keith Palumbo said the firm's scale and strategic resources give middle and lower middle market companies a competitive advantage. Geoff Rehnert, Executive Chairman of Audax Private Equity and Co-CEO of Audax Group, said the firm has maintained a consistent presence in the North American middle market since its 1999 founding. Kirkland & Ellis, LLP served as legal counsel for the concurrent fundraises.
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