(Bloomberg) -- Apax Partners has decided to halt new investments into health care assets as the private equity firm sees fewer opportunities in the industry.
The buyout firm will no longer have a dedicated health care team as a result and reassign almost all of the members to other roles, according to an update to its limited partners seen by Bloomberg News. Andrew Cavanna, one of the firm’s partners overseeing health care investment, has become head of investor relations for Americas, according to Apax’s website.
Apax said the remaining health care portfolio companies will continue to be managed by the broader team, while the firm will keep investing in “health care-adjacent” businesses.
“Business quality in health care is more variable due to reimbursement and regulatory pressures, supply shocks, capex intensity, and ‘stroke-of-the-pen’ risk, among other factors,” Apax Co-Chief Executive Officers Andrew Sillitoe and Mitch Truwit said in the investor note. “The heterogeneity of the sector has also provided fewer opportunities for us to leverage our repeatable playbooks.”
Apax has raised $80 billion in capital with offices in New York, London, Hong Kong, Mumbai, Munich, Shanghai and Tel Aviv, its website shows. The private equity firm will focus exclusively on the technology, services and internet consumer sectors going forward, according to its update.
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