Apax Partners has decided to drop out of the venture business in favor of the “more stable” returns from buyout investments:
Apax Partners Worldwide LLP Chief
Executive Officer Martin Halusa plans to stop investing in
startup companies to focus solely on leveraged buyouts after
raising a record 10 billion-euro ($13 billion) takeover fund.
“Our next fund will be 100 percent buyouts,” Halusa said
last week after giving a presentation to the Washington State
Investment Board in Olympia. “Our venture results have been very
volatile, and our focus is on the more stable end of the
A continuing run of VC dropouts will do wonders for the “stability” of returns in venture, not to mention steadily driving buyout returns to the S&P 500.