CIC primed to become investor in Apax Partners

China Investment Corp (CIC), the country’s sovereign wealth fund, is poised to become a key investor in private equity firm Apax Partners, Reuters reported, citing a source familiar with the situation. A deal currently under discussion would give investors in Apax’s latest buyout fund the option of transferring up to US$1.2 billion of commitments to CIC. This would allow cash-strapped investors to exit before private equity firms start to call on commitments to pay for new deals. The deal – under which CIC would also take a 2.3% stake in the company that manages Apax’s buyout funds – hinges on the sovereign wealth fund securing at least US$525 million of the outstanding commitments. Apax wants to sell off 10% of the company that manages its buyout funds to generate capital, which would then be used to invest in future funds alongside its investors. Last year it agreed to sell 7.7% to various international sovereign wealth funds.