UK based private equity group, Apax partners has sold 7.7% stake in its management company to two investors – the Government of Singapore Investment Corp.’s private equity unit, GIC Special Investments, and the Australian public pension plan, Future Fund. The two investors have acquired the stakes for undisclosed amounts, reports Financial Times. The PE group had been in discussions for selling the stake for more than a year.
The proceeds from the stake sale will be reinvested in a permanent capital vehicle in which Future Fund will hold a 10% stake. The permanent capital vehicle will invest in the funds of Apax. None of the proceeds from the stake sale have been used to cash out the selling equity partners. Apax partners plans to sell another 2.3% stake and is holding discussions for the same.
The deal would give Future Fund access to the existing and the future funds of Apax. Future fund has about $38.4 billion under its management, out which of which about 1.8% is allocated to private equity. GIC is a sovereign fund with assets of over $330 billion.
Apax Partners had set up its office in India in 2006 and since has made only one investment in the country- in Apollo Hospitals. Apax had invested $104 million in Apollo Hospitals Enterprise Ltd in 2007, for 11.5% stake. Apax has also invested in some of Europe’s biggest buyout deals such as New Look and Tommy Hilfiger.