Axon Partners Group is strengthening its commitment to high-potential tech SMEs and is preparing to launch a new fund that will build on the success of Axon Innovation Growth I launched in 2021. Based on the strong performance of this predecessor, the firm is confident it can raise up to €250 million for the new vehicle.
Axon Innovation Growth II, which will soon be registered with the Spanish National Securities Market Commission (CNMV), will kick off its fundraising process with a target of €200 million and a hard cap of €250 million, to be raised in two stages.
In the first stage, by the end of 2024, when the fund is expected to reach its first close, Axon, under the leadership of Francisco Velázquez, anticipates securing between €100 million and €120 million. This initial round will largely draw support from investors who backed its predecessor—most of them Spanish. The second stage, expected to conclude in the second quarter of 2025, will target foreign investors with no prior relationship with the firm. For the first time, Axon plans to strengthen its international distribution efforts and enlist an external agent to expand into new markets.
Strategy
Axon’s outlook for fundraising is optimistic, given the strong track record and returns achieved by Axon Innovation Growth I. The first fund raised €100 million in commitments, has already returned half of that amount, and currently boasts a net annual return of 60% and a gross multiple of three times in just four years. Despite the uncertainties surrounding alternative assets, these results are expected to fuel interest in the new fund.
Axon Innovation Growth II aims to replicate its predecessor’s strategy by targeting tech SMEs with a profitable market proposition but needing a financial partner to unlock their growth potential fully. The fund plans to take minority positions in such companies.
Capital commitments from the fund will range between €5 million and €20 million. Following this strategy, Axon expects to build a portfolio of 10 to 15 companies. Geographically, the fund will prioritize investments in Spain and Italy, where Axon opened an office last year, while also seeking opportunities in other European markets.
