TIDMAPAX
RNS Number : 2725R
Apax Global Alpha Limited
04 November 2021
(LSE: APAX)
Apax Global Alpha Limited
Quarterly results for the period ended 30 September 2021
Key highlights
-- Total NAV Return(1) of 9.9% in the quarter (8.3% constant
currency).
-- Total Adjusted NAV increased to c. EUR 1.5bn with Adjusted
NAV per share, growing from EUR2.81 (GBP2.41) to EUR3.02 (GBP2.59)
in the three months to 30 September 2021.
-- Performance in Private Equity driven primarily by earnings
growth in the portfolio and an increase in multiples, mainly
as a result of ThoughtWorks IPO in the quarter.
-- Private Equity exits achieved at healthy uplifts(2) of 56.9%.
-- Strong investment pace in Private Equity, with AGA deploying
c.EUR47m on a look through basis across three new Private
Equity investments in the period.
-- Distributions of c.EUR85m received from Private Equity, including
proceeds from one full exit (TietoEvry), one partial exit
(Wizeline) and two public listings (ThoughtWorks and Paycor)
in the period.
-- Five Derived Investments positions were realised in the quarter
for a total of c. EUR70m, providing net realisations of c.
EUR43m that can be used to meet future Private Equity calls.
-- Liquidity position is healthy with available cash after net
liabilities of EUR73m, and the evergreen revolving credit
facility of EUR140m remaining undrawn. Derived Investments
of c.EUR394m(3) provide a further source of funding for AGA.
Ralf Gruss, COO of Apax Partners, said:
"It has been another strong quarter and we are pleased to see
that AGA's investment strategy and sector focus have continued to
deliver robust NAV performance. In Private Equity, we have seen a
number of transactions, primarily in the Tech sector. There
continues to be a solid pipeline of deals and real momentum across
the portfolio."
Financial highlights
-- Growth in Adjusted NAV(3) to c. EUR1.5 billion, up from c.
EUR1.4 billion as at 30 June 2021.
-- Portfolio weighted towards Private Equity (72%), vs. Derived
Debt (24%) and Derived Equity (4%).
-- AGA was 95% invested as at 30 September 2021 and had
outstanding commitments to the Apax Funds (together with recallable
distributions) of EUR434m.
Q3 2021 (EUR) Q3 2021 (GBP)
Adjusted NAV (3) EUR 1,483m GBP 1,274m
-------------- --------------
Adjusted NAV (3) per EUR 3.02 GBP 2.59
share
-------------- --------------
NAV (3) per share EUR 3.03 GBP 2.61
-------------- --------------
Exposure Q3 2021 Q3 2021
constant currency
Total NAV Return(1) 9.9% 8.3%
--------- -------- -------------------
Total Return(1) -
Private Equity 68% 13.6% 11.8%
--------- -------- -------------------
Total Return(1) -
Derived Debt 23% 3.4% 1.5%
--------- -------- -------------------
Total Return(1) -
Derived Equity 4% 6.5% 5.4%
--------- -------- -------------------
Cash & Others 5%
--------- -------- -------------------
Private Equity portfolio highlights
-- The Private Equity portfolio performed strongly in the quarter:
Total Return(1) of 13.6% (11.8% constant currency).
-- Deal activity reflective of Apax's 'good to great' investment
strategy and sub-sector expertise, focusing on companies where
a significant re-rating opportunity exists based on business
quality improvement.
-- Aggregate Gross IRR(4) and Gross MOIC(4) on Private Equity
exits in Q3 2021 were 73.6% and 6.5x respectively. Exits were
achieved at an average uplift(2) of 56.9%, reflecting the
quality of the portfolio.
-- On a look-through basis, AGA invested c.EUR47m(5) in three
new investments in Tech that closed during the period.
-- Continued strong earnings growth and operating performance
from the portfolio companies: LTM Revenue (6) and EBITDA growth
(6) of 22% and 41% respectively across the Private Equity
portfolio.
-- LTM Enterprise Value/EBITDA valuations multiples increased
to 23.5x from 18.0x in June 2021, primarily driven by the
re-rating of ThoughtWorks achieved at IPO.
-- The Apax Digital Fund II, to which AGA has made a commitment
of $90m, closed at its $1.75bn hard cap in the period.
Derived Investments portfolio highlights
-- Steady performance across the portfolio with Derived Investments
achieving a Total Return(1) of 3.8% (2.0% constant currency)
in the quarter, driven by Derived Debt which makes up 87%
of the Derived Investments portfolio.
-- Continued focus on investments in lower risk first and second
lien loans where there is a high degree of visibility on cash
flow, and in target sub-sectors where Apax has unique insights
gained from the Private Equity investment activity - c.EUR27m
deployed across 4 new debt positions in Q3 2021.
-- Five Derived Investments positions were realised during the
quarter with net distributions of c. EUR43m. The realisations
reflect AGA's strategy of creating liquidity from the Derived
Investments portfolio to support capital calls from the Apax
Private Equity funds.
-- Strong operating performance from underlying Derived Debt
portfolio companies: c.33% LTM EBITDA growth to 30 September
2021.
-- Reflecting the increased share of first lien loans and the
impact of lower base rates in the portfolio, the overall yield
to maturity of the portfolio stands at 6.5% at 30 September
2021.
-- No new investments in Derived Equity.
-- Derived Debt delivered a Total Return(1) of 3.4% (1.5% constant
currency) and Derived Equity delivered Total Return(1) of
6.5% (5.4% constant currency) in the quarter.
For further information regarding the announcement of AGA's 2021
third quarter results, including the Company's results presentation
and dial-in details for today's analyst and investor webcast at
9.30am (UK time), please visit www.apaxglobalalpha.com .
Contact details
Katarina Sallerfors
Investor Relations - AGA
Telephone: +44 (0)207 666 6526
Email: katarina.sallerfors@apax.com
APPIX
Movements in NAV
Adjusted NAV(3) movements Private Derived Treasury Facility Q3 2021
(EURm) Equity Investments Cash Shares drawn Other Total
-------- ------------- -------- --------- --------- ------- --------
Adjusted NAV at 30.6.21 916.6 434.7 78.4 - - (49.4) 1,380.3
--------------------------- -------- ------------- -------- --------- --------- ------- --------
+ Investments 59.2 27.1 (122.1) - - 35.8 -
--------------------------- -------- ------------- -------- --------- --------- ------- --------
- Distributions/
divestments (84.8) (70.2) 154.7 - - 0.3 -
--------------------------- -------- ------------- -------- --------- --------- ------- --------
+ Interest and dividend
income - - 11.8 - - 0.6 12.4
--------------------------- -------- ------------- -------- --------- --------- ------- --------
+/- Gains/(losses) 108.9 (2.8) - - - - 106.1
--------------------------- -------- ------------- -------- --------- --------- ------- --------
+/- FX gains/(losses)(7) 16.2 7.0 (0.4) - - - 22.8
--------------------------- -------- ------------- -------- --------- --------- ------- --------
+/- Costs and other
movements - - (2.2) - - 0.1 (2.1)
--------------------------- -------- ------------- -------- --------- --------- ------- --------
- Dividends paid - - (34.4) - - - (34.4)
--------------------------- -------- ------------- -------- --------- --------- ------- --------
+/- Performance fee
reserve - (2.1) - - - - (2.1)
--------------------------- -------- ------------- -------- --------- --------- ------- --------
+/- Treasury shares - - - - - - -
--------------------------- -------- ------------- -------- --------- --------- ------- --------
+/- Revolving credit - - - - - -
facility
drawn/repaid -
--------------------------- -------- ------------- -------- --------- --------- ------- --------
Adjusted NAV at
30.9.21 (3) 1,016.1 393.7 85.8 - - (12.6) 1,483.0
--------------------------- -------- ------------- -------- --------- --------- ------- --------
Private Equity - operational metrics
Private Equity - operational metrics 30 September 2021 30 June 2021
-----------------
Portfolio year-over-year LTM revenue growth(6) 21.5% 22.3%
================================================ ================== ==============
Portfolio year-over-year LTM EBITDA growth(6) 41.0% 42.7%
================================================ ================== ==============
Enterprise Value / EBITDA valuation multiple(6) 23.5x 18.0x
================================================ ================== ==============
Net debt / EBITDA multiple (6) 3.4x 3.7x
------------------------------------------------ ------------------ --------------
Derived Investments - operational metrics
Derived Investments - operational metrics 30 September 2021 30 June 2021
-----------------
Debt year-over-year LTM EBITDA growth(8) 32.6% 37.3%
=========================================== ================= ============
Debt average income yield to maturity(8) 6.5% 6.8%
=========================================== ================= ============
Debt average years to maturity 6.2 5.9
=========================================== ================= ============
Debt average income yield(9) 6.5% 6.4%
------------------------------------------- ----------------- ------------
Other Invested Portfolio highlights
Invested Portfolio analysis(10) EURm EURm % %
----- ------- ---
* AMI 52.5 4%
================================ ===== ======= === ====
* AEVI 7.3 0%
================================ ===== ======= === ====
* AEVII 23.4 2%
================================ ===== ======= === ====
* AVIII 164.8 11%
================================ ===== ======= === ====
* AIX 576.4 41%
================================ ===== ======= === ====
* ADF 38.3 3%
================================ ===== ======= === ====
* AX 153.4 11%
================================ ===== ======= === ====
Private Equity 1,016.1 72%
================================ ===== ======= === ====
* Derived Debt 348.8 24%
================================ ===== ======= === ====
* Derived Equity 51.5 4%
================================ ===== ======= === ====
Derived Investments 400.3 28%
================================ ===== ======= === ====
Total 1,416.4 100%
-------------------------------- ----- ------- --- ----
Footnotes
1. "Total NAV Return" means the movement in the Adjusted NAV
per share over the period plus any dividends paid. "Total
Return" reflects the sub-portfolio performance on a stand-alone
basis. It excludes items at the overall AGA level such as
cash, management fees, and costs
2. Valuation uplifts on exits are calculated based on the total
actual or estimated sales proceeds and income as appropriate
since the last Unaffected Valuation. Unaffected Valuation
is determined as the fair value in the last quarter before
exit, when valuation is not affected by the exit process
(i.e. because an exit was signed, or an exit was sufficiently
close to being signed that the Apax Funds incorporated the
expected exit multiple into the quarter end valuation).
Average uplift of full exits and significant partial exits
in the current period calculated based on the expected sales
proceeds and/ or the fair value remaining. For investments
where there were subsequent partial realisations since June
2021, uplift calculated by taking proceeds received in Q3
2021 plus remaining fair value at 30 September 2021 compared
to fair value at 30 June 2021
3. NAV was EUR1,489.6m whilst Adjusted NAV was EUR1,483.0m
reflecting the estimated performance fee reserve of EUR6.6m
at period end. Private Equity NAV and Adjusted NAV were
the same at EUR1,016.1m. Derived Investments NAV was EUR400.3m
compared to an Adjusted NAV of EUR393.7m which has an adjustment
of EUR6.6m for the performance fee reserve.
4. Private Equity Aggregate Gross IRR and Gross MOIC, combined
in EUR, of 73.6% and 6. 5x calculated based on the aggregate
cash flows across all funds for the 1 full exit, 1 partial
exit and 2 IPOs
5. EUR47m of invested cost in new Private Equity investments
remains subject to final closing adjustments
6. Gross Asset Value weighted average of the respective metric
across the portfolio. At June 2021 and September 2021, 21
and 24 investments were excluded (investments in the financial
services sector; companies with negative EBITDA or moving
from negative to positive EBITDA; investments that are written-off;
companies where EBITDA is not meaningful for specific reasons)
7. FX on cash includes the revaluation of cash balances and
net losses arising from the differences in exchange rates
between transaction dates and settlement dates, and unrealised
net losses arising from the translation into euro of assets
and liabilities (other than investments) which are not denominated
in euro
8. Gross Asset Value weighted average of the respective metric
across the Derived Debt portfolio
9. Gross Asset Value weighted average of the current full year
income (annual coupon/clean price as at the respective date)
for each debt position in the Derived Debt portfolio as
at the respective date
10. Invested Portfolio excludes cash and cash equivalents, revolving
credit facility drawn and net current assets, including
these the NAV was EUR1,489.6m and Adjusted NAV was EUR1,483.0m
reflecting adjustment of EUR6.6m for the estimated performance
fee reserve
Notes
1. Note that references in this announcement to Apax Global Alpha
Limited have been abbreviated to "AGA" or "the Company". References
to Apax Partners LLP have been abbreviated to "Apax" or "the
Investment Adviser"
2. Please be advised that this announcement may contain inside
information as stipulated under the Market Abuse Regulations
(EU) NO. 596/2014 ("MAR")
3. This announcement is not for release, publication or distribution,
directly or indirectly, in whole or in part, into or within
the United States or to "US persons" (as defined in Regulation
S under the United States Securities Act of 1933, as amended
(the "Securities Act")) or into or within Australia, Canada,
South Africa or Japan. Recipients of this announcement in jurisdictions
outside the UK should inform themselves about and observe any
applicable legal requirements in their jurisdictions. In particular,
the distribution of the announcement may be restricted by law
in certain jurisdictions
4. The information presented herein is not an offer for sale within
the United States of any equity shares or other securities
of Apax Global Alpha Limited ("AGA"). AGA has not been and
will not be registered under the US Investment Company Act
of 1940, as amended (the "Investment Company Act"). In addition,
AGA's shares (the "Shares") have not been and will not be registered
under the Securities Act or any other applicable law of the
United States. Consequently, the Shares may not be offered
or sold or otherwise transferred within the United States,
or to, or for the account or benefit of, US Persons, except
pursuant to an exemption from the registration requirements
of the Securities Act and under circumstances which will not
require AGA to register under the Investment Company Act. No
public offering of the Shares is being made in the United States
5. This announcement may include forward-looking statements. The
words "expect", "anticipate", "intends", "plan", "estimate",
"aim", "forecast", "project" and similar expressions (or their
negative) identify certain of these forward-looking statements.
These forward-looking statements are statements regarding AGA's
intentions, beliefs or current expectations concerning, among
other things, AGA's results of operations, financial condition,
liquidity, prospects, growth and strategies. The forward-looking
statements in this presentation are based on numerous assumptions
regarding AGA's present and future business strategies and
the environment in which AGA will operate in the future. Forward-looking
statements involve inherent known and unknown risks, uncertainties
and contingencies because they relate to events and depend
on circumstances that may or may not occur in the future and
may cause the actual results, performance or achievements of
AGA to be materially different from those expressed or implied
by such forward looking statements. Many of these risks and
uncertainties relate to factors that are beyond AGA's ability
to control or estimate precisely, such as future market conditions,
currency fluctuations, the behaviour of other market participants,
the actions of regulators and other factors such as AGA's ability
to continue to obtain financing to meet its liquidity needs,
changes in the political, social and regulatory framework in
which AGA operates or in economic or technological trends or
conditions. Past performance should not be taken as an indication
or guarantee of future results, and no representation or warranty,
express or implied, is made regarding future performance. AGA
expressly disclaims any obligation or undertaking to release
any updates or revisions to these forward-looking statements
to reflect any change in AGA's expectations with regard thereto
or any change in events, conditions or circumstances on which
any statement is based after the date of this announcement,
or to update or to keep current any other information contained
in this announcement. Accordingly, undue reliance should not
be placed on the forward-looking statements, which speak only
as of the date of this announcement.
About Apax Global Alpha Limited
AGA is a Guernsey registered closed-ended collective investment
scheme incorporated as a non-cellular company that listed on the
London Stock Exchange on 15 June 2015. It is regulated by the
Guernsey Financial Services Commission.
AGA's objective is to provide shareholders with capital
appreciation from its investment portfolio and regular dividends.
The Company is targeting an annualised Total Return, across
economic cycles, of 12-15% (net of fees and expenses) including a
dividend yield of 5% of Net Asset Value.
The investment policy of the Company is to make Private Equity
investments in Apax Funds, and Derived Investments which are
investments in equities and debt derived from the insights gained
via Apax Partners' Private Equity activities.
Further information regarding the Company and its publications
are available on the Company's website at
www.apaxglobalalpha.com.
About Apax Partners LLP
Apax Partners LLP ("Apax") is a leading global private equity
advisory firm. For nearly 50 years, Apax has worked to inspire
growth and ideas that transform businesses. The firm has raised and
advised funds with aggregate commitments of more than $60 billion.
The Apax Funds invest in companies across four global sectors of
Tech, Services, Healthcare, and Internet/Consumer. These funds
provide long-term equity financing to build and strengthen
world-class companies. For further information about Apax, please
visit www.apax.com.
Apax Partners is authorised and regulated by the Financial
Conduct Authority in the UK.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
QRTEAXFDEAXFFFA
(END) Dow Jones Newswires
November 04, 2021 02:59 ET (06:59 GMT)
Apax Global Alpha (LSE:APAX)
Historical Stock Chart
From Mar 2024 to Apr 2024
Apax Global Alpha (LSE:APAX)
Historical Stock Chart
From Apr 2023 to Apr 2024
