London-based Apax Partners is recalibrating its tech investments to prioritize companies that are either strong AI adopters or minimally impacted by the technology, according to partner Salim Nathoo. In an interview with Private Equity International, Nathoo emphasized the firm’s focus on technology, business services, and consumer sectors, avoiding the rush to allocate capital to oversized funds dominating the private equity space. This approach contrasts with competitors flooding the market with mega-funds, as Apax opts for targeted bets aligned with its core expertise.

The firm’s strategy reflects a broader shift in private equity toward quality over quantity, with Apax doubling down on industries where it has deep operational knowledge. By avoiding sectors overly dependent on AI disruption, the company aims to mitigate risks tied to rapid technological shifts. Nathoo noted that Apax’s portfolio companies are selected for their ability to leverage existing technologies rather than bet on unproven innovations, ensuring stability amid sector volatility.

$1.2 billion in recent tech deals underscores Apax’s disciplined approach, with investments spread across business services and consumer tech rather than speculative AI-driven plays. This cautious stance positions the firm to capitalize on undervalued opportunities while sidestepping the overexposure seen in larger funds. Analysts suggest this could insulate Apax from market corrections affecting AI-heavy portfolios.

For investors, Apax’s strategy highlights a growing trend of sector-specific diversification in tech private equity. By balancing AI-ready firms with resilient, non-disruptive businesses, the firm aims to deliver consistent returns without overcommitting to high-risk tech bets. This approach may set a benchmark for smaller PE players navigating uncertain innovation cycles.