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Apax Partners LLP is a British
private equity Private equity (PE) typically refers to investment funds, generally organized as limited partnerships, that buy and restructure companies that are not publicly traded. Private equity is a type of equity and one of the asset classes consisting of ...
firm, headquartered in London, England. The company also operates out of six other offices in
New York New York most commonly refers to: * New York City, the most populous city in the United States, located in the state of New York * New York (state), a state in the Northeastern United States New York may also refer to: Film and television * ''Ne ...

New York
,
Hong Kong Hong Kong (, ), officially the Hong Kong Special Administrative Region of the People's Republic of China (HKSAR) (), is a metropolitan area and special administrative region of the People's Republic of China on the eastern Pearl River Delta o ...
,
Mumbai Mumbai (, ; also known as Bombay , the official name until 1995) is the capital city of the Indian state of Maharashtra. According to the United Nations, as of 2018, Mumbai is the second-most populous city in the country after Delhi and the ...

Mumbai
,
Tel Aviv Tel Aviv-Yafo ( he, תֵּל־אָבִיב-יָפוֹ – ''Tel Aviv-Yafo'' ; ar, تَلّ أَبِيب - يَافَا – ''Tall ʾAbīb - Yāfā''), often referred to as just Tel Aviv, is the most populous city in the Gush Dan metropolita ...
,
Munich Munich ( ; german: München ; bar, Minga ) is the capital and most populous city of Bavaria. With a population of 1,558,395 inhabitants as of 31 July 2020, it is the third-largest city in Germany, after Berlin and Hamburg, and thus the lar ...
and
Shanghai Shanghai (, , Standard Mandarin pronunciation: ) is one of the four direct-administered municipalities of the People's Republic of China, governed by the State Council. The city is located on the southern estuary of the Yangtze River, with ...
. As of December 2017, the firm, including its various predecessors, have raised approximately $51
billion A billion is a number with two distinct definitions: *1,000,000,000, i.e. one thousand million, or (ten to the ninth power), as defined on the short scale. This is now the meaning in both British and American English. *1,000,000,000,000, i.e. on ...
(USD) since 1981. Apax Partners is one of the oldest and largest private equity firms operating on an international basis, ranked the fourteenth largest private equity firm globally. Apax invests exclusively in certain business sectors including:
telecommunication Telecommunication is the transmission of information by various types of technologies over wire, radio, optical or other electromagnetic systems. It has its origin in the desire of humans for communication over a distance greater than that feasi ...
s,
technology Technology ("science of craft", from Greek , ''techne'', "art, skill, cunning of hand"; and , ''-logia'') is the sum of techniques, skills, methods, and processes used in the production of goods or services or in the accomplishment of objectiv ...
,
retail Retail is the process of selling consumer goods or services to customers through multiple channels of distribution to earn a profit. Retailers satisfy demand identified through a supply chain. The term "retailer" is typically applied where a se ...
and
consumer products A final goods or consumer goods is a commodity that is used by the consumer to satisfy current wants or needs, unlike intermediate goods which is utilized to produce another goods. A microwave oven or a bicycle is a final good, whereas the parts p ...
,
healthcare Health care, health-care, or healthcare is the maintenance or improvement of health via the prevention, diagnosis, treatment, recovery, or cure of disease, illness, injury, and other physical and mental impairments in people. Health care is deliv ...
and
financial Finance is the study of financial institutions, financial markets and how they operate within the financial system. It is concerned with the creation and management of money and investments. Savers and investors have money available which could ...
and business services. Looks for a target EBITDA of $1,000mm - $5,000mm. Apax raises capital for its investment funds through
institutional investor An institutional investor is an entity which pools money to purchase securities, real property, and other investment assets or originate loans. Institutional investors include banks, credit unions, insurance companies, pension funds, hedge funds, ...
s including corporate and public
pension fund A pension fund, also known as a superannuation fund in some countries, is any plan, fund, or scheme which provides retirement income. Pension funds typically have large amounts of money to invest and are the major investors in listed and private c ...
s, university and college endowments, foundations and
fund of funds A "fund of funds" (FOF) is an investment strategy of holding a portfolio of other investment funds rather than investing directly in stocks, bonds or other securities. This type of investing is often referred to as multi-manager investment. A fund ...
. One of the firm's co-founders,
Alan Patricof Alan Patricof (born 1934) is an American investor, one of the early pioneers of the venture capital and private equity industries. He founded Apax Partners (based on a play on Patricof's name: Alan Patricof Associates Cross (x) Border), which is o ...
, was an early investor in
Apple Computer Apple Inc. is an American multinational technology company headquartered in Cupertino, California, that designs, develops, and sells consumer electronics, computer software, and online services. It is considered one of the Big Five companies ...
and
America Online AOL (stylized as Aol., formerly a company known as AOL Inc. and originally known as America Online) is an American web portal and online service provider based in New York City. It is a brand marketed by Verizon Media. The service traces its h ...
(AOL).


History

Apax Partners Worldwide is the product of the combination of three firms: *Patricof & Co., founded in 1969 in New York by pioneering venture capitalist Alan Patricof; *Multinational Management Group (MMG), founded in 1972 by
Sir Ronald Cohen Sir Ronald Mourad Cohen (born 1 August 1945) is an Egyptian-born British businessman and political figure. He is the chairman of The Portland Trust and Bridges Ventures.Klion Forum with Sir Ronald Cohen: "Why Do We Need Social Capital Markets?" ...
and Maurice Tchénio;Patricof & Co. Ventures Strategically Takes On 'Apax Partners' Name in Plan to Fortify Leading Global Private Equity Role
''Business Wire'', Sept 10, 2001.
*Saunders Karp & Megrue, founded in 1988 by Thomas A. Saunders III and Allan W. Karp and joined by John Megrue in 1992.


Patricof & Co. and MMG

In 1969, Alan Patricof founded Patricof & Co. a firm dedicated to making investments in "development capital" later known as "venture capital," primarily in small early-stage companies. Patricof, one of the early venture capitalists, was involved in the development of numerous major companies including
America Online AOL (stylized as Aol., formerly a company known as AOL Inc. and originally known as America Online) is an American web portal and online service provider based in New York City. It is a brand marketed by Verizon Media. The service traces its h ...
,
Office Depot The ODP Corporation is an American office supply retailing company headquartered in Boca Raton, Florida. The company has combined annual sales of approximately $11 billion, and employs about 38,000 associates with businesses in the United States. ...
,
Cadence Design Systems Cadence Design Systems, Inc., headquartered in San Jose, California, is an American multinational computational software company, founded in 1988 by the merger of SDA Systems and ECAD, Inc. The company produces software, hardware and silicon structu ...
,
Apple Computer Apple Inc. is an American multinational technology company headquartered in Cupertino, California, that designs, develops, and sells consumer electronics, computer software, and online services. It is considered one of the Big Five companies ...
and
FORE Systems FORE Systems was a computer network switching equipment company based in Pittsburgh, Pennsylvania. Founded in 1990 to supply Asynchronous Transfer Mode (ATM) cards for workstation computers, it soon branched out to become a major supplier in the ATM ...
. In 1975, Patricof launched 53rd Street Ventures, a $10 million vehicle. Meanwhile, in 1972,
Sir Ronald Cohen Sir Ronald Mourad Cohen (born 1 August 1945) is an Egyptian-born British businessman and political figure. He is the chairman of The Portland Trust and Bridges Ventures.Klion Forum with Sir Ronald Cohen: "Why Do We Need Social Capital Markets?" ...
and Maurice Tchénio, along with two other partners, founded Multinational Management Group (MMG) with offices in London, Paris, and Chicago. MMG initially was established as an advisory firm, working with small emerging companies, rather than an investment firm. However, MMG initially struggled to gain traction amid the negative economic conditions, particularly in the UK in the mid-1970s. By 1977, two of the original four founding partners had left MMG, leaving Cohen and Tchénio in need of a partner to help rejuvenate their firm. In that year, Cohen approached Alan Patricof to join them and run the new firm's investments in the U.S. The new firm would be known as Alan Patricof Associates (APA) and ultimately come to be known as Apax Partners (based on a play on Patricof's name: Alan Patricof Associates Cross (x) Border). Following the merger, MMG abandoned its advising business, and the new APA shifted its focus exclusively to investing in
start-up#REDIRECT Startup company {{R from other capitalisation ...
companies.


1980s-21st century

Throughout the 1980s, the firm grew steadily raising capital under a series of separate funds. As the 1980s progressed, the firm introduced its first later stage venture fund in 1984, its first
growth capital Growth may refer to:"''Quantative increase in size''". Biology * Auxology, the study of all aspects of human physical growth * Bacterial growth * Cell growth * Growth hormone, a peptide hormone that stimulates growth * Human development (biology) ...
fund in 1987 and its first dedicated European
leveraged buyout A leveraged buyout (LBO) is one company's acquisition of another company using a significant amount of borrowed money to meet the cost of acquisition. The assets of the company being acquired are often used as collateral for the loans, along wit ...
fund MMG Patricof European Buy-In Fund in 1989.Source:
Thomson Financial Thomson Financial was an arm of the Thomson Corporation, an information provider. When the Thomson Corporation merged with Reuters to form Thomson Reuters in April 2008, Thomson Financial was merged with the business of Reuters to form the Markets ...
's VentureXper
www.venturexpert.com
In response to the changing conditions, in the venture capital industry in the 1980s Apax (and other early venture capital firms including
Warburg Pincus Warburg Pincus LLC is a New York-based private equity firm focused on growth investing with offices in the United States, Europe, Brazil, China, Southeast Asia and India. It has been a private equity investor since 1966. The firm currently has appr ...
and J.H. Whitney & Company) began to transition away from venture capital toward leveraged buyouts and growth capital investments, which were in vogue in that decade.POLLACK, ANDREW.
Venture Capital Loses Its Vigor
" ''
The New York Times ''The New York Times'' (''NYT'' or ''NY Times'') is an American daily newspaper based in New York City with a worldwide readership. Founded in 1851, the ''Times'' has since won 130 Pulitzer Prizes (the most of any newspaper), and has long be ...
'', October 8, 1989.
This trend was more prevalent in Europe than the U.S. where Patricof preferred to continue focusing on venture investments. In 1991, Apax Partners became the official name for all of its European operations however the U.S. business still operated under the Patricof & Co. name. By the mid-1990s Apax had become one of the larger private equity firms globally. In 2000, Patricof & Co. adopted the Apax Partners branding and formalized its affiliation with its European business. The U.S. business would operate as Apax Partners, Inc. The following year, Patricof stepped back from day-to-day management of Apax Partners, Inc., the US arm of the firm to return to his original focus on making venture capital investments in small early-stage companies. In 2006, Patricof left Apax to form
Greycroft Partners Greycroft is a venture capital firm. It manages over $2 billion in capital with investments in companies such as Bird, Bumble, HuffPost, Goop, Scopely, The RealReal, and Venmo. Greycroft was founded in 2006 by Alan PatricofDana Settle anIan Sigal ...
which focuses on small early-stage venture capital investments. Despite the closer relations between the U.S. and European teams, the firm still operated separate fund entities for each geography. The European side of the business began to pull away in terms of capital commitments, raising more than $5 billion for its 2004 vintage European fund but just $1 billion for its 2006 U.S. vintage fund.


Saunders Karp & Megrue

In 2005, Apax announced it would acquire middle market
leveraged buyout A leveraged buyout (LBO) is one company's acquisition of another company using a significant amount of borrowed money to meet the cost of acquisition. The assets of the company being acquired are often used as collateral for the loans, along wit ...
firm Saunders Karp & Megrue to augment its buyout business in the United States. Saunders Karp, formerly based in
Stamford, Connecticut Stamford () is a city in the U.S. state of Connecticut. It is the third-most populous city in Fairfield County with a population of 129,302 according to the 2020 census. Stamford is the third-largest city by population in Connecticut (behind Bri ...
, was founded in 1989 by Thomas A. Saunders III and Allan W. Karp. John Megrue, who today serves as co-chairman of
Bridgewater Associates Bridgewater Associates is an American investment management firm founded by Ray Dalio in 1975. The firm serves institutional clients including pension funds, endowments, foundations, foreign governments, and central banks. It utilizes a global ...
, had worked as a principal at Patricof & Co. before joining Saunders Karp in 1992. Saunders Karp had received capital commitments from
institutional investor An institutional investor is an entity which pools money to purchase securities, real property, and other investment assets or originate loans. Institutional investors include banks, credit unions, insurance companies, pension funds, hedge funds, ...
s including
AT&T Corporation AT&T Corporation, originally the American Telephone and Telegraph Company, is the subsidiary of AT&T Inc. that provides voice, video, data, and Internet telecommunications and professional services to businesses, consumers, and government agenci ...
, the General Electric Pension Trust, Goldman Sachs Private Equity Group,
HarbourVest Partners HarbourVest Partners is a private equity fund of funds and one of the largest private equity investment managers globally. The firm invests in all types of private equity funds, including venture capital and leveraged buyout funds, and also directl ...
, , New York State Common Retirement Fund and
Verizon Verizon Communications Inc. is an American multinational telecommunications conglomerate and a corporate component of the Dow Jones Industrial Average. The company is headquartered at 1095 Avenue of the Americas in Midtown Manhattan, New York ...
, among others.


Investments

;Pre-2000 * In 1998, Apax invested in Neurodynamics Limited, which was the parent of
Autonomy Corporation HP Autonomy, previously Autonomy Corporation PLC, was an enterprise software company which was merged with Micro Focus in 2017. It was founded in Cambridge, United Kingdom in 1996. Originally, Autonomy specialised in analysis of large scale un ...
. *
British Telecom BT Group plc (trading as BT and formerly British Telecom) is a British multinational telecommunications holding company headquartered in London, England. It has operations in around 180 countries and is the largest provider of fixed-line, broadb ...
restructured, and agreed to sell the
Yell Group Hibu (styled hibü), formerly Yell Group plc, is a multinational directories and internet services company headquartered in Reading, Berkshire, UK. It has operations in the United Kingdom (known as Yell), the United States, and Spain (known as Pag ...
Yellow pages The yellow pages are any telephone directory of businesses, organized by category rather than alphabetically by business name, and in which advertising is sold. The directories were originally printed on yellow paper, as opposed to white pages ...
directory business to Apax and
Lion Capital LLP Lion Capital LLP is a British private equity firm specialising in investments in the consumer sector. Previous and current consumer brands owned by Lion have included Weetabix, Jimmy Choo, Wagamama, Kettle Foods and AllSaints. The firm is headqu ...
for £2.14 billion/$3.5 billion, making it then the largest non-corporate LBO in European history. Yell bought US directories publisher McLeodUSA for about $600 million the following year, and floated on London's in 2003. ;2004 *Apax purchased
PCM Uitgevers DPG Media Group (DPG representing De PersGroep) is a Belgian media company also active in the Netherlands and Denmark. It is owned by the Van Thillo family and employs some 6,000 people. Divisions The DPG Media Group operates through three nat ...
. ;2005 * Apax purchased a majority stake in
Travelex Travelex is a foreign exchange company founded by Lloyd Dorfman and headquartered in London. Its main businesses are international payments, foreign currency exchange, issuing prepaid credit cards for use by travellers and global remittance.
(the world's largest foreign exchange company) for £1.06bn. In Q3 2005 Apax also announced plans to purchase Grupo Panrico, one of Spain, Spain's largest food companies and its largest bakery company. * A partnership consisting of Apax, Saban Capital Group and Arkin Communications acquired the controlling interest (30%) in Israeli telecommunications company Bezeq in October 2005 for $923 million. The partnership sold its stake to Internet Gold – Golden Lines Ltd. subsidiary B Communications in April 2010 for $1.75 billion. * As part of the Violet Acquisitions consortium (along with Barclays Capital and Robert Tchenguiz) Apax is involved in the December 2005 purchase of Somerfield. Somerfield was later sold to The Co-operative Group in March 2009. * Apax floated the satellite communications company Inmarsat on the London Stock Exchange in 2015. ;2006 * Apax purchased the Tommy Hilfiger Corporation for $1.6 billion, or $16.80 a share, all in cash. In May 2006, this deal was approved by the shareholders of Tommy Hilfiger. * In June 2006, Apax acquired HIT Entertainment in a take-private transaction. * Apax acquired a majority stake in Pictage, Inc. the leading provider of online solutions for professional wedding and portrait photographers. Pictage, Inc. was co-founded by Gary Fong. * On 21 August 2006 it was announced that Apax Partners and Bain Capital had joined the enlarged private equity consortium headed by Kohlberg Kravis Roberts & Co., KKR that has agreed to acquire an 80.1% stake in the Semiconductor Division of Philips, Royal Philips Electronics. The new company is called NXP Semiconductors. * On 31 October 2006 it was announced that Apax Partners had acquired FTMSC (Orange S.A., France Télécom Mobile Satellite Communications) which would later be rebranded under the Vizada name in June 2007. This was shortly followed by an announcement on 6 September 2007 explaining that Apax Partners had acquired Telenor Satellite Services which was to be merged into the Vizada brand. * On 20 November 2006 Apax Partners Worldwide LLP won a tender to buy control of Tnuva. The bid values the privately held food and dairy group at $1.025 billion. ;2007 * In May 2007, Apax signed definitive agreements with funds advised by Apax Partners and OMERS Capital Partners under which such funds acquired the higher education, careers and library reference assets of Thomson Learning, and a consortium of funds advised by OMERS, and Apax acquired Nelson Canada, for a combined total value of approximately $7.75 billion in cash. The higher education, careers and library reference assets include such well-known brands and businesses as: Wadsworth, South-Western, Delmar Learning, Eddie Diamond, Gale, Heinle, Brooks/Cole, Course Technology and Nelson Canada. Nelson Canada is a leading provider of books and online resources for the educational market in Canada. The group will be majority-owned by OMERS. The name was changed to Cengage Learning, on 24 July 2007. * Apax sells PCM Uitgevers. ;2008 *In January 2008 Apax and Mivtach Shamir Holdings Ltd., Mivtach Shamir purchased the Tnuva company for $1.025 billion. * In August 2008, Apax Partners completed acquisition of TriZetto Group. ;2009 * In August 2009, Apax Partners completed acquisition of Bankrate. ;2010 * In January 2010, Apax Partners acquired 76.8% of Israel-based Psagot Investment House for $570 million. * In April 2010, Apax Partners announced acquisition of TIVIT. * In May 2010, Apax Partners acquired a 70% stake in Sophos for $580 million. ;2011 * On 25 March 2011 Apax Partners announced that it had reached a definitive agreement to purchase Trader Corporation (“Trader”) from Yellow Media for a purchase price consideration of $745M. * On 23 December 2011 Apax Partners announced acquisition of the Swiss branch of Orange S.A., Orange. ;2012 * In February 2012, Apax sold HiT Entertainment to Mattel for $680 million. * On 11 June 2012 an Apax-led consortium announced acquisition of Paradigm Ltd. * In September 2012, Apax Partners forms consortium with CEO Stephen Cretier for GardaWorld Security Services. * In November 2012, Apax Partners agrees to acquire Cole Haan and completes acquisition 4 February 2013. ;2014 * On 21 January 2014 Apax bought out the remaining 50.1% share of Trader Media from the Guardian Media Group. * On 8 December 2014 Apax announced that it had entered into a transaction agreement to acquire 100% of the shares of EVRY. * On 9 October 2014 Apax announced that they will acquire Netherlands, Dutch software maker Exact (company), Exact. It closed the transaction in April 2015. ;2015 * 2015 Apax bought 100% of Spanish real state web portal idealista.com * In May 2015, Apax Partners agreed to purchase Quality Distribution, a Tampa, Florida-based chemical transport and logistics firm, for $800 million, including assumption of debt. The deal was completed in August 2015. * In December 2015, Apax Partners agreed to sell Rhiag-Inter Auto Parts Italia SpA to LKQ Corporation for $1.14 billion. ;2016 * On 19 July 2016 Apax Partners agrees to acquire Boats Group. Formerly Dominion Marine Media ("DMM"), a subsidiary of Landmark Media Enterprises. ;2017 * On 23 August 2017 funds advised by Apax Partners announced a definitive agreement to acquire ThoughtWorks, a global software development and digital transformation consulting company. * In September 2017, Tom Chapman (entrepreneur), Tom Chapman and Ruth Chapman sold a majority stake of Matchesfashion.com to private-equity funds managed by Apax Partners. ;2019 * In January 2019, Apax Partners invested US$200 million in Fractal Analytics. * In May 2019, Apax Partners purchased New Zealand e-commerce company Trade Me for US$1.7 billion. 2020 * In April 2020, Apax Partners finalized the purchase of Coalfire, a cybersecurity firm. *In Dec 2020, Azentio Software Private Limited, subsidairy of Apax Partners, buys global software products business of 3i Infotech for Rs. 1000 Cr


Criticisms


British United Shoe machinery (2000)

The circumstances surrounding the demerger, transfer of assets and subsequent collapse of the British United Shoe Machinery#Failed Flotation, Apax Partners and pension collapse, British United Shoe Machinery in 2000 led to questions about Apax's behaviour being raised in Parliament by MPs of both main parties. After calls for an enquiry into the loss of hundreds of pensions were refused, Ros Altmann, the pensions expert and, as of 2015, UK Pensions minister described it "one of the worst cases ..I have seen ..the actions of the former owners - Apax have been immoral." The politician Ashok Kumar (British politician), Ashok Kumar said, "I think these people needed flogging" ..these are greedy, selfish, capitalists who live on the backs of others.


Hellas Telecommunications (2015)

Following its sale of Wind Hellas in 2007, Apax and Hellas co-owner TPG were sued by former bondholders of the telecom company, who allege that Apax and TPG unjustifiably enriched themselves from Hellas and misrepresented the true state of its accounts. Apax has countered that some of these bondholders only began their dispute after passing up on the chance of selling prior to the bankruptcy of 2009, and that Apax sold the business in 2007 (almost three years before the bankruptcy) and so was not the legal owner of Hellas during the periods cited in some of the lawsuits. (In 2005 a New York judge awarded $56m to some of these bondholders, made against Hellas Telecommunications Finance and Hellas Finance, rather than Apax or TPG). Other lawsuits related to Apax and TPG's ownership of Hellas are being heard in the USA. In December 2015 a separate legal action brought by the liquidators of Hellas Telecommunications was dismissed by a Luxembourg court. In February 2018 the liquidators abandoned their UK case against Apax and TPG after four days of trial.


See also

* Scott Mead


References


External links

*
How I rode the rising wave of private equity
" The Sunday Times, November 4, 2007 {{Largest private equity firms Apax Partners, Apax Partners companies, Private equity firms of the United Kingdom Conglomerate companies of the United Kingdom Financial services companies based in London Companies based in the City of Westminster Financial services companies established in 1969 1969 establishments in England British companies established in 1969 Conglomerate companies established in 1969