Audax Private Equity – a leading alternative investment manager and capital partner for North American middle market companies, successfully closed two new funds: Audax Private Equity Fund VII and Audax Private Equity Origins Fund I. Both funds had exceeded their respective fundraising targets. And Origins closed on $774 million in commitments, while Audax’s flagship vehicle, Audax Private Equity Fund VII, hit its hard cap of $5.25 billion in commitments.
Combined with an additional $1.8 billion available through GP co-investment vehicles, the two funds provide Audax with $7.8 billion to deploy across the middle and lower-middle markets.
Through Fund VII and Origins, Audax will continue investing in North American platforms across six core industry specializations: Business Services, Consumer, Financial Services, Healthcare, Industrial Services & Technologies, and Software & Technology.
Both Fund VII and Origins received commitments from a diversified mix of investors, including public and private pensions, endowments and foundations, sovereign wealth funds, insurance companies, high-net-worth investors and family offices. Commitments from existing LP relationships accounted for a substantial majority of the total capital raised. And Audax also broadened and diversified its investor base by client type and by geography. Across Fund VII and Origins, for instance, Audax welcomed investors domiciled across 31 different countries.
The combined Audax commitment of $1.8 billion represents approximately 30% of the total LP commitments across both funds. And since its inception, Audax Private Equity has committed $4.1 billion to invest alongside the firm’s LPs.
Fund VII already deployed approximately $1.3 billion across seven platform investments and Origins Fund I has deployed just over $195 million across three platforms. And in the first half of 2023, Audax completed four new platform investments and 48 add-on acquisitions across its entire portfolio of 57 platforms, eclipsing the firm’s year-ago pace for the same time period.
KEY QUOTES:
“We are grateful to our limited partners, both long-standing supporters and new relationships. The successful fundraises are a testament to our 20-plus year focus on the middle market, the tenure and experience of our team, and Audax’ Buy & Build strategy, which drive the consistency and persistence of our approach against any economic backdrop.”
— Young J. Lee, Co-President of Audax Private Equity
“We’re excited to introduce our Origins strategy. Our approach remains unchanged–Audax Private Equity’s scale and deep strategic resources provide a distinct competitive advantage to middle and lower middle market companies positioned to accelerate organic and inorganic growth initiatives.”
— Audax Private Equity Co-President Keith Palumbo
“Since our founding in 1999, Audax has established a consistent presence and track record in the North American middle market, which we believe remains one of the most attractive segments in the world to source investment opportunities and execute our Buy & Build strategy. We appreciate the continued trust of our investors. We take this responsibility seriously, and value our collaborative and aligned relationships with our limited partners.”
— Geoff Rehnert, Executive Chairman of Audax Private Equity and Co-CEO of Audax Group
