LONDON: The Apax X Fund has announced the sale of its minority stake in AffiniPay, a market leader in professional services software and payments serving legal, accounting, architectural, engineering and construction firms, to Genstar Capital and TA Associates.
This will result in a full exit of Apax X’s residual stake in AffiniPay following Apax X’s sale of the legal case management software company MyCase to AffiniPay in June 2022.
Including the initial sale of MyCase to AffiniPay, this transaction will deliver a realised gross MOIC of 4.2×1 and a gross IRR of 93%1.
On completion, and inclusive of prior distributions, AGA will have received total proceeds of c.€28m from Apax X’s investment in MyCase and subsequently in AffiniPay. AGA is a limited partner in Apax X Fund.
AGA expects to receive c.€4m on its remaining look-through stake which represents a discount of 17.5% to the last Unaffected Valuation at 31 March 2024.
The transaction is expected to close in Q4 2024, subject to customary closing conditions.
Note that these figures relate to AGA’s look-through position of Apax X’s overall investment in MyCase and AffiniPay and are stated before taking into account any closing adjustments, fees, costs, and carried interest, and are translated based on the latest exchange rates available where applicable.
Apax X acquired MyCase in October 2020, carving out the business from AppFolio, a publicly traded software company.
The investment thesis was to capitalise on rapidly increasing technology adoption by law firms by investing in a leading player with clear improvement opportunities in go-to-market, product expansion, M&A, and carve-out driven acceleration of the business.
In 2022, Apax X successfully sold MyCase to AffiniPay, retaining a minority stake in the combined business. During Apax X’s ownership, and with significant involvement from Apax’s Operational Excellence Practice, MyCase invested heavily into the sales and marketing function.
The Apax team also supported four strategic acquisitions, which gave MyCase additional modules to cross-sell to customers as well as a leading position in other legal software categories.
AGA, whose shares are listed on the London Stock Exchange, provides investors with access to the Apax Private Equity Funds and a smaller portfolio of mostly Debt Investments. In 2019, AGA made a commitment of c.$450m3 to Apax X.