Audax Private Equity has closed its first general partner-led secondary fund (“Continuation Fund”) with $1.7 billion in capital commitments.
Capital from the Continuation Fund was used to purchase portfolio companies from Audax Private Equity Fund IV LP including Innovative Chemical Products, a Massachusetts-based specialty chemical company that formulates and manufactures coatings, adhesives and sealants (acquired in 2015); Justrite Safety, an Illinois-based manufacturer of industrial safety products for the handling and storage of flammable and hazardous liquids (2015); 42 North Dental, a Massachusetts-based dental practice management company (2015); and TPC Wire & Cable, an Ohio-based producer of ruggedized wires and cables used in harsh industrial applications (2015).
Investors in the Continuation Fund include AlpInvest Partners, Lexington Partners, and Hamilton Lane, and numerous Fund IV limited partners. All Fund IV limited partners had the option of reinvesting their Fund IV value into the Continuation Fund or receiving full or partial liquidity.
“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,” said Joe Rogers, a managing director of Audax. “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.”
“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, a 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.”
Audax invests in middle-market companies that have from $8 million to $50 million in EBITDA and enterprise values of $50 million to $400 million. Sectors of interest include business and consumer services; energy; healthcare; technology, media and telecom; and industrials including chemicals, infrastructure, and building materials. Audax has offices in Boston, New York, and San Francisco.
Evercore was the financial advisor to Audax and Kirkland & Ellis provided legal services.
© 2021 Private Equity Professional | January 20, 2021
