TIDMAPAX
RNS Number : 3445Y
Apax Global Alpha Limited
04 May 2023
(LSE: APAX)
Apax Global Alpha Limited
Quarterly results for the period ended 31 March 2023
Apax Global Alpha (LON:APAX), the closed-ended investment
company providing access to the Apax Private Equity Funds, today
announced its first quarter results for the period ended 31 March
2023.
Key highlights
-- AGA achieved a Total NAV Return(1) of 1.9% (2.8% constant
currency) in the quarter ended 31 March 2023. Adjusted NAV
remained stable at EUR1.3bn (31 Dec 2022: EUR1.3bn).
-- The largest driver of Total NAV Return was earnings growth
from the Private Equity portfolio companies with LTM EBITDA
growth of 15.6%(2) .
-- The debt portfolio delivered a Total Return of 2.8% in Q1
2023 (3.9% constant currency).
-- Despite a challenging market backdrop, the Apax Funds continued
to focus on opportunities where value creation can be achieved
through operational improvement. The Apax Funds completed
two new Private Equity investments in the period in which,
on a look-through basis, AGA deployed EUR10.1m.
-- In Private Equity, two full exits were completed during the
period at an average uplift(3) of 25%, a Gross IRR(3) and
Gross MOIC (3) of 19% and 2.2x respectively.
-- Good pipeline of new investments offers value creation opportunities
for shareholders.
Ralf Gruss, Partner at Apax and a member of the AGA investment
committee, said:
"Despite the market backdrop, AGA has had a good start to the
year, and we've seen continued good operating performance across
the portfolio companies. Whilst the macro environment remains
volatile, the private equity pipeline looks promising. The Apax
Funds continue to focus on opportunities to invest in good
companies, in target sectors where operational improvement can help
transform businesses and achieve a re-rating on exit."
Financial highlights
-- AGA was 97% invested as at 31 March 2023 and had unfunded
commitments to the Apax Funds (together with recallable distributions)
of EUR1.0bn.
-- At 31 March 2023, AGA's invested portfolio consisted of EUR887.7m
in Private Equity (71%) and EUR368.0m in Derived Investments
(29%).
-- In early 2023, AGA received formal notice that the RCF will
revert to a conventional fixed-term arrangement with an expiry
date of 10 January 2025.
Q1 2023 Q1 2023 FY 2022 FY 2022
EUR GBP EUR GBP
-------- -------- -------- --------
Adjusted NAV (4) 1,291m 1,135m 1,299m 1,150m
-------- -------- -------- --------
Adjusted NAV (4)
per share 2.63 2.31 2.65 2.34
-------- -------- -------- --------
NAV (4) per share 2.63 2.31 2.65 2.34
-------- -------- -------- --------
% Q1 2023 Q1 2023
of constant currency
NAV
Total NAV Return(1) 1.9% 2.8%
------ -------- -------------------
Total Return(1) - Private
Equity 69% 1.8% 2.6%
------ -------- -------------------
Total Return(1) - Derived 29% 2.9% 4.0%
Investments
o Total Return(1) - Derived 27% 2.8% 3.9%
Debt
o Total Return(1) - Derived 2% 4.3% 4.9%
Equity
------ -------- -------------------
Cash & Others 2%
------ -------- -------------------
Portfolio highlights
-- Invested portfolio split across four key sectors: Tech
& Digital (38%), Services (28%), Healthcare (18%), and
Internet/Consumer (16%).
-- In Private Equity, the portfolio is well diversified
across vintages: 11% invested before 2017, 38% were acquired
in the 2017-2019 period, and 51% of investments are from
2020 and later.
-- The Private Equity portfolio delivered a Total Return(1)
of 1.8% (2.6% constant currency) in the period. This
reflected resilient trading performance with LTM Revenue
and EBITDA growth of 18.6%(2) and 15.6%(2) respectively
across the Private Equity portfolio companies, demonstrating
the robustness of their business models and the benefit
of the Apax Funds' investment approach.
-- AGA's debt portfolio, which makes up 93% of Derived Investments,
delivered a Total NAV Return(1) of 2.8% in Q1 2023.
-- 99% of the Derived Debt investments are invested in floating
rate loans. With increasing base rates, the portfolio
generates a 9.8% income yield.
-- The average yield to maturity of the portfolio increased
to 11.8% at 31 March 2023 (FY22: 12.1%).
-- The Derived Debt portfolio has outperformed the S&P/LSTA
leveraged loan index(5) with a five-year cumulative return
on a constant currency basis of 38.8% compared to 19.5%.
-- The Derived Debt portfolio absorbs cash not invested
in Private Equity, enhances the robustness of AGA's balance
sheet, provides a steady flow of income to support dividends,
and additional returns.
-- There was one new investment in Derived Debt in Q1 2023
and one full exit in Derived Equity.
For further information regarding the announcement of AGA's Q1
2023 Results, including the Company's results presentation and
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: +44 207 666 6526
Email: Katarina.sallerfors@apax.com
APPIX
Movements in NAV
Adjusted NAV movements Private Derived Treasury Facility Q1 2023
(EURm) Equity Investments Cash Shares drawn Other(6) Total
-------- ---------------- ----- --------- --------- --------- ---------
Adjusted NAV at
31.12.22 871.0 364 .2 68.0 - - (3.8) 1, 299.4
-------------------------- -------- ----------- --------- ---------- --------- --------- ---------
+ Investments 4.0 5.8 (13.9) - - 4.1 -
-------------------------- -------- ----------- --------- ---------- --------- --------- ---------
- Distributions/
divestments (2.5) (5.8) 5.7 - - 2.6 -
-------------------------- -------- ----------- --------- ---------- --------- --------- ---------
+ Interest and dividend
income - - 7.7 - - 0.7 8.4
-------------------------- -------- ----------- --------- ---------- --------- --------- ---------
+/- Gains/(losses) 22.6 7.8 - - - - 30.4
-------------------------- -------- ----------- --------- ---------- --------- --------- ---------
+/- FX gains/(losses)(7) (7.4) (4.0) 0.9 - - - (10.5)
-------------------------- -------- ----------- --------- ---------- --------- --------- ---------
+/- Costs and other
movements - - (1.6) - - (0.6) (2.2)
-------------------------- -------- ----------- --------- ---------- --------- --------- ---------
- Dividends paid - - (32.5) - - - (32.5)
-------------------------- -------- ----------- --------- ---------- --------- --------- ---------
+/- Performance fee
reserve(8) - (1.6) - - - - (1.6)
-------------------------- -------- ----------- --------- ---------- --------- --------- ---------
+/- Shares purchased - - - - - - -
-------------------------- -------- ----------- --------- ---------- --------- --------- ---------
+/- Revolving credit
facility
drawn/repaid - - 55.0 - (55.0) - -
-------------------------- -------- ----------- --------- ---------- --------- --------- ---------
Adjusted NAV at
31.03.23 887.7 366.4 89.3 - (55.0) 3.0 1,291.4
-------------------------- -------- ----------- --------- ---------- --------- --------- ---------
Private Equity - operational metrics
Private Equity - operational metrics 31 March 23 31 December 22
-------------
Portfolio year-over-year LTM revenue growth(2) 18.6% 21.5%
================================================ ============== ==============
Portfolio year-over-year LTM EBITDA growth(2) 15.6% 18.5%
================================================ ============== ==============
Enterprise Value / EBITDA valuation multiple(2) 17.0x 17.2x
================================================ ============== ==============
Net debt / EBITDA multiple (2) 4.7x 4.8x
------------------------------------------------ -------------- --------------
Derived Investments - operational metrics
Derived Investments - operational metrics 31 March 23 31 December 22
-----------
Debt average yield to maturity(4) 11.8% 12.1%
=========================================== =========== ==============
Debt average years to maturity 4.8 5.1
=========================================== =========== ==============
Debt average income yield(4) 9.8% 9.9%
------------------------------------------- ----------- --------------
Other Invested Portfolio highlights
Invested Portfolio analysis(9) EURm EURm % %
----- ------- ---
* AEVI 2.2 0%
=============================== ===== ======= === ====
* AEVII 23.1 2%
=============================== ===== ======= === ====
* AVIII 93.3 7%
=============================== ===== ======= === ====
* AIX 313.7 25%
=============================== ===== ======= === ====
* AX 387.7 31%
=============================== ===== ======= === ====
* AXI (5.7) 0%
=============================== ===== ======= === ====
* AMI 26.7 2%
=============================== ===== ======= === ====
* AMI II (0.9) 0%
=============================== ===== ======= === ====
* ADF 48.9 4%
=============================== ===== ======= === ====
* ADF II 0.6 0%
=============================== ===== ======= === ====
* AGI (1.9) 0%
=============================== ===== ======= === ====
Private Equity 887.7 71%
=============================== ===== ======= === ====
* Derived Debt 343.6 27%
=============================== ===== ======= === ====
* Derived Equity 24.4 2%
=============================== ===== ======= === ====
Derived Investments 368.0 29%
------------------------------- ----- ------- --- ----
Total 1,255.7 100%
------------------------------- ----- ------- --- ----
Footnotes
1 "Total NAV Return" means the movement in the Adjusted NAV
per share over the quarter 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 Gross Asset Value weighted average of the respective metric
across the portfolio. LTM Revenue growth and LTM EBITDA
growth rates exclude companies where EBITDA is not meaningful
such as financial services or high growth business with
fluctuations in EBITDA. Net debt/EBITDA multiple and EV/EBITDA
valuation multiple excluded companies where EBITDA is not
meaningful such as financial services or high growth business
valued on a revenue basis.
3 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). Where applicable, average uplifts of partial
exits and IPO's includes proceeds received and the closing
fair value at period end. Private Equity Aggregate Gross
IRR and Gross MOIC calculated based on the expected aggregate
cash flows in euro across all funds for the deals signed
and/or IPO'd in the period. Gross IRR represents concurrent
Gross IRR.
4 Adjusted NAV reflects Total NAV of EUR1,293.0, before performance
fee reserve of EUR1.6m
5 Derived Debt constant currency returns and S&P LSTA leveraged
loan index rebased to 100 and compounded on a quarterly
basis. Bloomberg source for S&P LSTA leveraged loan index
6 Other reflects net current assets.
7 FX on cash includes the revaluation of cash balances and
net gain or losses arising from the differences in exchange
rates between transaction dates and settlement dates, and
unrealised net gains or losses arising from the translation
into euro of assets and liabilities (other than investments)
which are not denominated in euro
8 Movement in the performance fee reserve reflects the performance
fee reserve accrued by the Company's at 31 March 23. This
does not represent the underlying Private Equity portfolio's
carried interest.
9 Invested Portfolio excludes cash and cash equivalents,
revolving credit facility drawn and net current assets,
including these the NAV was EUR1,293.0m and Adjusted NAV
was EUR1,291.4m reflecting adjustment of EUR1.6m for the
estimated performance fee reserve accrued.
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's 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 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 $65 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 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
QRFBXLLBXELLBBF
(END) Dow Jones Newswires
May 04, 2023 02:00 ET (06:00 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
