Apax Global Alpha to invest €28m in UK accountancy business Evelyn Partners

Apax Global Alpha Limited (LON:APAX), the closed-ended investment company providing access to the Apax Private Equity Funds, has announced that it expects to invest approximately €28m in the accountancy and advisory practice of Evelyn Partners on a look-through basis.

On 25 November 2024, the Apax XI Fund (Apax XI), in which AGA is a limited partner, announced that it had reached a definitive agreement to acquire Evelyn Partners’ accountancy business. The transaction will create a leading standalone UK mid-market accountancy business which, upon completion, will be rebranded S&W, building on the heritage of the Smith & Williamson brand which dates back to 1881. The transaction remains subject to customary closing conditions.

Evelyn Partners’ accountancy and advisory practice, which is based in London and serves clients across the UK, offers a range of accountancy services including audit and business outsourcing, business tax, private client tax, and advisory.

Apax has identified the mid-market accountancy and advisory space as the ideal place to invest as increased regulation and conflicts make the Big Four less competitive in servicing the mid-market. Within this market, Apax viewed S&W as the ideal UK platform to back because of its brand heritage, high quality service offering, deep talent pool and it has demonstrated a track record of growth.

The investment thesis is to support the newly branded S&W on its growth journey, cementing its place as a leader in the mid-market space. There is an opportunity to improve its already strong client offering through new go to market strategies, cross-selling and further investment in technology. There is also a meaningful opportunity to unlock strategic M&A in what is a fragmented market.

Note that AGA’s expected investment in S&W is calculated based on the look-through positions of Apax XI’s overall investment in S&W and is translated based on the latest exchange rates available where applicable¹.

Apax Global Alpha, whose shares are listed on the London Stock Exchange, provides investors with access to a diversified portfolio of private equity funds advised by Apax as well as a focused portfolio of mostly debt investments. In June 2022, AGA made a commitment of c. $700m to Apax XI².

Footnotes

1. Based on GBP/EUR FX rate on 25 November 2024 of 1.1974
2. AGA’s commitment in Apax XI of c.$700m represents a commitment of $490m in the USD tranche and €198.4.m in the euro tranche.

Notes

1. Note that references in this announcement to Apax Global Alpha Limited have been abbreviated to “AGA” or “the Company”. References to Apax Partners LLP have been abbreviated to “Apax”, or “the Investment Adviser”.
2. Please be advised that this announcement may contain inside information as stipulated under the Market Abuse Regulations (EU) NO. 596/2014 (“MAR”).
3. This announcement is not for release, publication or distribution, directly or indirectly, in whole or in part, into or within the United States or to “US persons” (as defined in Regulation S under the United States Securities Act of 1933, as amended (the “Securities Act”)) or into or within Australia, Canada, South Africa or Japan. Recipients of this announcement in jurisdictions outside the UK should inform themselves about and observe any applicable legal requirements in their jurisdictions. In particular, the distribution of the announcement may be restricted by law in certain jurisdictions.
4. The information presented herein is not an offer for sale within the United States of any equity shares or other securities of Apax Global Alpha Limited (“AGA”). AGA has not been and will not be registered under the US Investment Company Act of 1940, as amended (the “Investment Company Act”). In addition, AGA’s shares (the “Shares”) have not been and will not be registered under the Securities Act or any other applicable law of the United States. Consequently, the Shares may not be offered or sold or otherwise transferred within the United States, or to, or for the account or benefit of, US Persons, except pursuant to an exemption from the registration requirements of the Securities Act and under circumstances which will not require AGA to register under the Investment Company Act. No public offering of the Shares is being made in the United States.
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