Audax Private Equity closed two new funds with about $6 billion in total commitments, with an additional $1.8 billion available through GP co-investment vehicles.
The firm’s flagship vehicle, Audax Private Equity Fund VII (Fund VII), hit its hard cap of $5.25 billion, while Audax Private Equity Origins Fund I (Origins) closed with $774 million in commitments. The new capital will allow Audax to stay the course on its strategy of backing North American platforms in six core segments: business services; consumer; financial services; healthcare; industrial services and technologies and software and technology.
“We are grateful to our limited partners, both long-standing supporters and new relationships,” said Audax Private Equity Co-President Young Lee. “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.”
While Fund VII is consistent with Audax’ previous focus on the middle market, the Origins fund is the firm’s first foray into the lower middle market. “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.”
The funds attracted support from a diversified mix of investors, including public and private pensions, sovereign wealth funds, endowments and foundations, high-net-worth investors and family offices. Much of the capital came from existing LP relationships, but Audax also expanded its investor base by client type and by geography, drawing investors domiciled across 31 different countries. Fund VII has already deployed about $1.3 billion across seven platform investments, while the Origins fund has invested a little 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, beating the firm’s pace for the year-ago period. They include a strategic investment in Congress Wealth Management, a Boston-based, independent registered investment advisor offering wealth management and services to U.S. high-net-worth individuals and families; and a partnership with Mosaic Dental Collective, a Vancouver, Wash.-based dental services organization supporting 49 affiliated dental offices in California and Washington.
Audax Private Equity has invested in more than 160 platforms and 1,200 add-on acquisitions since its inception in 1999. The firm has dual headquarters in Boston and San Francisco and about $16 billion in AUM. Its parent, alternative investment manager the Audax Group, has about $36 billion in AUM.
