Apax IX, a private equity fund, has announced a deal involving the acquisition of Paycor, with Apax Global Alpha (AGA) as a limited partner. The transaction is expected to close in the first half of 2025, pending standard conditions.

The acquisition is projected to yield a gross multiple on invested capital of 3.3 times and a gross internal rate of return of 26% for Apax IX. For AGA, the deal values its investment in Paycor at approximately €38 million, marking a 69% increase from the last unaffected valuation and adding €16 million to AGA’s net asset value as of September 30.

Apax IX initially acquired a majority stake in Paycor in 2018 and took the company public in 2021. Throughout its ownership, Apax collaborated with Paycor’s leadership to drive growth, expand into key North American markets, and enhance a human capital management platform tailored for the mid-market sector.

Apax Global Alpha was created to give investors access to a portfolio of private equity funds advised by Apax, along with a primarily debt investment portfolio. Following the announcement, shares in Apax Global Alpha rose by 0.43% to 139.4p.

This strategic acquisition reflects Apax's commitment to enhancing Paycor's market position and delivering strong returns for its investors.