Audax Private Equity Fund VII, the firm’s flagship fund, was oversubscribed, hitting its hard cap of $5.25 billion.
Audax Private Equity Origins Fund I closed above target, raising $774 million for the firm’s debut lower middle market strategy.
Combined with an additional $1.8 billion commitment from the Audax team, the two funds provide $7.8 billion of equity to deploy across the middle and lower middle market.
BOSTON and SAN FRANCISCO – July 11, 2023 -- Audax Private Equity (“Audax”), a leading alternative investment manager and capital partner for North American middle market companies, successfully closed two new funds: Audax Private Equity Fund VII (“Fund VII”) and Audax Private Equity Origins Fund I (“Origins”). Both funds exceeded their respective fundraising targets. Origins closed on $774 million in commitments, while Audax’ 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 market.
Through Fund VII and Origins, Audax will continue its strategy of investing in North American platforms across six core industry specializations: Business Services, Consumer, Financial Services, Healthcare, Industrial Services & Technologies, and Software & Technology.
“We are grateful to our limited partners, both long-standing supporters and new relationships,” said Young J. Lee, Co-President of Audax Private Equity. “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.”
“We’re excited to introduce our Origins strategy,” added Audax Private Equity Co-President Keith Palumbo. “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.”
Diversified, Aligned Global Investor Base
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.
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. Since its inception, Audax Private Equity has committed $4.1 billion to invest alongside the firm’s LPs.
“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,” added Geoff Rehnert, Executive Chairman of Audax Private Equity and Co-CEO of Audax Group. “We appreciate the continued trust of our investors. We take this responsibility seriously, and value our collaborative and aligned relationships with our limited partners.”
Fund VII has already 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 entire portfolio of 57 platforms, eclipsing the firm’s year-ago pace for the same time period.
Kirkland & Ellis, LLP served as legal counsel to Audax for the concurrent fundraises.
Based in Boston and San Francisco, Audax Private Equity is a leading middle market investment firm with approximately $16 billion of assets under management, over 185 employees, and 80-plus investment professionals. Since its founding in 1999, the firm has invested in more than 160 platforms and 1,200 add-on acquisitions. Through our disciplined Buy & Build approach, across six core industry verticals, Audax helps portfolio companies execute on organic and inorganic growth initiatives that fuel revenue expansion, optimize operations, and significantly increase equity value.