Apax Partners has decided to stop making new investments in the health care sector due to a lack of opportunities.

The private equity firm will disband its health care team and reassign most of its members to different roles. Andrew Cavanna, who previously oversaw health care investments, has taken on the role of head of investor relations for the Americas.

While Apax will continue to manage its existing health care portfolio, the firm will now focus on "health care-adjacent" businesses. The Co-CEOs of Apax, Andrew Sillitoe and Mitch Truwit, have acknowledged the challenges in the health care sector, including issues with business quality, reimbursement and regulatory pressures, supply chain problems, and high capital expenditure. They have also noted that the diverse nature of the sector has made it difficult for the firm to apply its investment strategies effectively.

With $80 billion in capital and a global presence in major financial hubs, Apax Partners will now concentrate solely on investments in technology, services, and internet consumer sectors.