Apax Global Alpha made a $90m commitment to Apax Digital Fund II (ADF II) in 2021. Yesterday ADF II announced an investment in Magaya, a leading digital freight software platform that automates critical workflows for international logistics providers (magaya.com). ADF II’s investment forms part of a 50:50 recapitalisation alongside financial sponsor LLR Partners and other existing shareholders.
Founded in 2001, the company currently serves around 2,300 largely small and medium business customers across over 100 countries. ADF II believes the company’s highly configurable platform, transparent pricing model, strong brand and customer service-focus uniquely positions it within a large, attractive, yet highly fragmented market. The thesis is to back the company to achieve its ‘good to great’ transformation, working with Apax’s Operational Excellence Practice to execute on several important value creation levers to accelerate organic growth.
On a look-through basis, Apax Global Alpha is expected to invest approximately €6.8m in Magaya.
Apax Funds’ valuations update
Separately, Apax Global Alpha has received the Apax Funds’ valuations for its private equity portfolio as at 31 December 2022. There’s no NAV update at this stage. That will be in its 2022 results, being released on 2 March 2023.
The above numbers exclude the sale of Duck Creek Technologies, an Apax VIII portfolio company, which was announced on 13 January 2023.
Credit Facility update
Apax Global Alpha has a revolving credit facility with Credit Suisse AG, London Branch since November 2018 which featured an evergreen term, with a rolling minimum notice period of two years. Following the formal receipt of notice, the facility has reverted to a conventional fixed-term arrangement with an expiry date of 10 January 2025.
The facility was undrawn at 31 December 2022 and currently remains undrawn. The company’s derived investments portfolio of €390.4m (as at 30 September 2022) can provide additional capital resources and flexibility if needed.
APAX : Apax backs Magaya and updates on 2022