Apax hails Thoughtworks IPO – The Apax IX Fund, in which Apax Global Alpha is a limited partner, is an indirect shareholder in Thoughtworks, a global technology consultancy that integrates strategy, design and engineering to drive digital innovation. Following Thoughtworks’ announcement on the 14 September 2021 of the pricing of its initial public offering of common stock, shares of Thoughtworks started trading on the Nasdaq on the 15 September 2021. The closing price per share of common stock on the 15 September was $29.29.
At the closing price, and based on latest exchange rates, Apax Global Alpha’s remaining look through position in Thoughtworks is valued at approximately €158m. In addition, the trust’s pro-rata share of IPO proceeds to be received by a subsidiary of Apax IX on closing of the IPO is about €15m. Altogether, this represents an uplift of about 89% or €82m to Thoughtworks’ fair value at 30 June 2021 and an uplift of about 5.9% to Apax Global Alpha’s adjusted NAV (or €0.17 per share) as at 30 June 2021.
Note that these figures are stated before taking into account any fees, costs, and carried interest.
[This is great news for Apax Global Alpha, which has already generated strong returns this year. Many of the companies in its portfolio that have IPOd this year have soared in price in the weeks and months that followed, adding further to Apax Global Alpha’s NAV. Thoughtworks was its biggest underlying holding ahead of this news. Yet again, we think this rams home the conservative valuation of the positions in private equity portfolios and confirms our belief that the discounts on these funds are still too wide.]
About Thoughtworks
Thoughtworks is a global software development and digital transformation consulting company. Incorporated in 1993 and headquartered in Chicago, USA, the company has grown from a small group to over 7,000 employees across 46 offices in 15 countries.
Apax IX acquired Thoughtworks in October 2017 from its founder and has been driving sales growth by focusing on account management practices and further investing in new technology capabilities.
In January 2021, a consortium of GIC, Siemens AG, Fidelity Management and Research LLC, and Mubadala Investment Company invested $720m into the company and Apax IX reduced its stake.