Apax Partners is dipping its toe into the public markets with the creation of Apax Global Alpha, a €250 million listed investment trust domiciled in Guernsey.
The vehicle, which is a registered, closed ended collective investment scheme, will trade on the London Stock Exchange and is expected to debut on 15 June.
It will give public equities investors access to Apax funds for the first time. It will also invest in public and private debt, and equity deals that do not meet the remit of Apax Partners buyout funds, but not in any other third-party funds.
Prior to the float Apax Global Alpha will acquire PCV Group, a fund launched in 2008 for the firm's employees. It has recorded an annual IRR of around 30% and, as of March of this year, had an estimated net asset value of €611.1 million.
Cornerstone backers have been secured and will invest €135 million in the issue. While Apax Partners will manage the assets, Apax Global Alpha has set up an independent board chaired by Tim Breedon, ex-Legal and General Chief Executive and a Non-Executive Director of Barclays.
"We believe that a listed structure is ideally suited to Apax Global Alpha's differentiated investment strategy of blending private equity with targeted investments in equities and debt," said Ralf Gruss, Partner at Apax Partners.
"We have been witnessing an attractive deal flow recently, and believe the fundraising will allow us to capture high alpha opportunities for Apax Global Alpha."
The vehicle is aiming for returns of 12% to 15% and will pay a dividend of 5% of NAV once fully invested. Employees of Apax, who will constitute the majority of capital, are locked into the vehicle for six years, with a subsequent staggered release of 20%. Other pre-IPO shareholders will be locked in for one year.
For more information about Guernsey's finance industry please visit www.guernseyfinance.com.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
