Audax Private Equity Announces Successful Closing of $1.7 billion Continuation Fund Led by AlpInvest Partners, Lexington Partners, and Hamilton Lane

JAN 2021

Audax Private Equity (“Audax”) announced today the successful completion of its first Continuation Fund. The fund is comprised of $1.7 billion in capital commitments, which funded the purchase of portfolio companies from Audax Private Equity Fund IV, a 2012 vintage fund with $1.25 billion in capital commitments. The largest of these Fund IV assets include:

  • Innovative Chemical Products Group (“ICP Group”), a leading specialty chemical company that formulates, manufactures, and markets coatings, adhesives and sealants;

  • Justrite Safety Group, a leading manufacturer of industrial safety products for handling, storage, and spill containment of flammable and hazardous liquids;

  • 42 North Dental, a leading dental practice management company in New England; and

  • TPC Wire & Cable Corp., a producer of ruggedized wires, cables, and interconnect assemblies for harsh industrial applications.
    This is Audax Private Equity’s first GP-led secondary fund. It will provide Audax with additional time and capital to support the continued growth of key portfolio assets.

“This is an important milestone for Audax Private Equity. We are pleased to have the support of our longstanding limited partners and a blue-chip set of new institutional partners,” said Don Bramley, Managing Director of Audax. “We are proud of the performance of our Fund IV portfolio, and believe that there is value we have yet to unlock. By leveraging the additional time and capital from this fund, we can continue to execute our proven Buy & Build acquisition strategy, with a goal of allowing our portfolio companies to reach their full potential. We look forward to continuing to work to create value for our existing and new limited partners.”

The transaction was led by AlpInvest Partners, Lexington Partners, and Hamilton Lane, and comprised of a diverse group of secondary and primary investors, including Fund IV limited partners. All Fund IV limited partners had the option of reinvesting their Fund IV value into the Continuation Fund on status quo terms, or receiving full or partial liquidity.

Joe Rogers, Managing Director of Audax, added, “We are grateful for the support of our existing limited partners and welcome the backing of such an exceptional group of new investors, including AlpInvest, Lexington, and Hamilton Lane. This transaction not only marks a new chapter of growth for our portfolio companies, but also for Audax Private Equity. We are pleased we could deliver optional liquidity to our existing Fund IV limited partners, and we look forward to leveraging the support of our new capital partners as we work alongside management teams to support transformative initiatives.”

Evercore served as exclusive financial advisor to Audax, with Kirkland & Ellis serving as Audax legal counsel. Ropes & Gray LLP acted as legal counsel for AlpInvest Partners and Hamilton Lane, Proskauer Rose LLP served as legal counsel for Lexington Partners.