Apex Capital Investments is a relatively young private equity firm founded in 2019 that specializes in late stage investments into high-growth technology companies. With headquarters in San Francisco and a team experienced in the tech investment industry, Apex Capital has already deployed hundreds of millions of dollars into companies like electric vehicle maker Rivian and Southeast Asian super app Grab. This article analyzes Apex Capital’s investment strategies, portfolio companies, target sectors, as well as the outlook for its future investments.
Apex Capital was founded by former TPG investor Jonathan Auerbach with extensive experience in the technology investment industry
Apex Capital Investments was founded in 2019 by Jonathan Auerbach, who previously worked at private equity giant TPG for 16 years. At TPG, Auerbach focused on the firm’s technology investments and led notable deals like acquiring a stake in ride-hailing company Lyft in 2017. After leaving TPG, Auerbach started Apex Capital to continue pursuing technology investments with a more concentrated focus on high-growth late stage startups. He teamed up with other investment professionals like Mary Maffucci and they set up shop in San Francisco, right in the heart of Silicon Valley startup ecosystem.
Apex Capital has deployed hundreds of millions into electric vehicle maker Rivian and Southeast Asian super app Grab
Despite being only established for a few years, Apex Capital Investments has been quite active deploying capital into late stage private technology startups. According to news reports, Apex participated in electric vehicle manufacturer Rivian’s $2.5 billion investment round in 2020. The firm also joined Grab’s $856 million Series B fundraising in 2018 and $1.46 billion Series G round in 2019. Grab operates a super app platform providing services like ride-hailing, food delivery, digital banking and more to millions of users across Southeast Asia. These two portfolio companies show that Apex Capital focuses on finding and investing in technology innovators with large addressable markets and the potential for tremendous growth.
Apex Capital targets investments in fintech, consumer internet, healthcare tech and other high-growth sectors
Based on its existing investments and the expertise of its investment team, Apex Capital Investments seems to concentrate its deals in several high-growth technology sectors. Areas like fintech, consumer internet, healthcare tech, artificial intelligence, autonomous driving, cloud services and more are the sweet spots for Apex Capital. These technology sectors all enjoy strong secular growth trends like digital transformation and innovative business models creating completely new markets. With its sector-focused investment strategies and experienced team, Apex Capital can add value to its portfolio companies through industry insights in addition to providing capital.
Apex Capital is likely to remain active pursuing late stage technology deals given strong fundraising momentum
So far, Apex Capital Investments has deployed hundreds of millions from its initial fund into companies like Rivian and Grab. However, Apex is raising additional funds to support more late stage tech deals going forward. According to media reports in January 2023, the firm is seeking to raise $2 billion for its second fund, significantly more than its first fund. This demonstrates both Apex Capital’s momentum in deploying capital as well as investor demand to get exposure to high-growth tech deals. With this influx of new capital, expect Apex Capital to continue being active hunting for additional late stage technology investment opportunities.
In summary, Apex Capital Investments is an emerging private equity firm specialized in late stage investments into high-growth technology companies like Rivian and Grab. With its experienced team, focused sector strategies, and fundraising momentum, Apex Capital is poised to deploy more capital supporting technology innovators and generating strong returns for its investors.