Apax Partners Israel will merge with Apax Partners Europe, becoming Israel’s biggest venture capital fund. Apax Partners, which manages assets worth $7 billion, said it would allocate $600 million to investment in Israeli high-tech companies.
Apax managing director Allan Barkat told “Globes” that Apax did not mean to raise another fund, as reported, and that the merger reflects the high-tech sector’s globalization process.
Barkat added that the merger would turn Apax Israel and Apax Partners Europe into a single entity, thereby institutionalizing the ties between the two funds, especially in resources and management. Until now, these ties were confined to aid and support. Following the merger, the number of associate partners will be 30, of whom 12 are in Israel. The fund is planning to co-opt more partners in the future.
Apax invests in start-up companies at all stages, unlike some other funds, which specialize in seed-stage investment. Apax’s portfolio also includes seed-stage investments, such as Global Factory, as well as a $15 million mezzanine investment in Compugen, prior to its flotation. The fund also offers incubator services to two entrepreneurs operating from its headquarters.
In the past six months, Apax invested $100 million in ten Israeli companies, including Compugen, OnePath and Kamoon. In the past, the fund invested in CommTouch, Fundtech, TdSoft, EZchip, and Butterfly, which was sold to Texas Instruments for $50 million.
Apax Partners chairman Ronald Cohen said “Israeli start-ups play an important role for us in the international company. Merging the Israeli and European operations will enable us to significantly expand our activity and investment in Israeli companies.”
Investors in Apax include MIT (Massachusetts Institute of Technology), Bell Atlantic, General Electric, IBM, insurance companies and US pension funds.
Published by Israel's Business Arena on 13 November, 2000