Apax Partners LLP, a British leveraged buyout firm, said it reaped 3.3 billion euros ($4.7 billion) last year from selling holdings in companies from Danish phone operator TDC A/S to clothes designer Tommy Hilfiger.
Apax received an average of three times its original investment from the asset sales, the London-based private equity firm said in its annual report today. The firm spent 3.1 billion euros in 2010.
Leveraged-buyout fund managers such as Apax pool money from investors to buy companies, financing purchases mostly with debt, with the intention of selling them later. The firms are resuming takeovers after the 2008 financial crisis almost halted buyouts for two years, and have announced $214 billion of takeovers this year, according to data compiled by Bloomberg.
“We continue to see a strong pipeline of proprietary investment opportunities,” said Chief Executive Officer Martin Halusa, 56, in the report. “The actions taken during the recession have positioned the portfolio for growth as the economy recovers and the budgetary outlook for 2011 remains positive.”
Apax oversees an 11.2 billion-euro fund raised in 2007. The firm is seeking to raise 9 billion euros for a new fund, people with knowledge of the plans said in March.