(LSE: APAX)
Apax Global Alpha
Limited
Quarterly results for the period ended
30 September 2024
Apax Global Alpha (LON: APAX), the closed-ended
investment company providing access to the Apax Private Equity
Funds, today announced its third quarter results for the period
ended 30 September 2024.
Key
highlights
|
·
|
Apax Global Alpha's ("AGA") Net Asset
Value ("NAV") was €1.20bn (H124 €1.24bn) at 30 September 2024,
equivalent to a NAV per share of €2.45/£2.04.
|
|
·
|
Performance improved in the three
months to 30 September 2024 but Total NAV Return per
share1 was broadly flat at -0.2% (+1.7%
constant currency) as a result of FX
headwinds.
|
|
·
|
At the end of Q3 2024, AGA offered
shareholders exposure to c.80 Private Equity portfolio companies,
making up 83% of AGA's invested portfolio. These companies
continued to perform well, posting average Last Twelve Months
("LTM") EBITDA2 growth of 16.3% (H124 15.6%).
|
|
·
|
Following recent exits, and pro-forma
for the take-private of Thoughtworks, the remaining exposure to
residual listed holdings in the Private Equity portfolio reduced to
c.4% of NAV (H124 c.7%), limiting further potential volatility in
the portfolio.
|
|
·
|
There was continued good momentum in
the period with 5 investments signed or closed with AGA expecting
to deploy c.€107m. There have also been 6 full exits signed or
closed at an average gross MOIC of 2.7x.
|
|
·
|
Since the start of the year, AGA has
returned c.€67m to shareholders via the dividends and share
buybacks with the latter creating 0.1% NAV per share accretion for
shareholders in Q3 2024. At 30 September 2024, the Buyback Pool had
available funds of c.€28m, having bought back c.0.3% of the 2024
opening share capital. Having launched the buyback programme at the
end of June 2024, the Board keeps under review the allocation to
buybacks to enhance value for shareholders.
|
Karl
Sternberg, Chairman of AGA, said:
"Following a challenging start to the year, performance across
the portfolio is improving with the underlying Private Equity
portfolio companies posting good earnings growth in the period. In
addition to the regular dividend which has been a core feature of
AGA since IPO, the Board is now able to support further NAV
accretion via buybacks, and we remain focused on generating value
for shareholders."
Financial highlights
|
·
|
AGA was well-capitalised at the end
of September 2024, with calls in the next 12 months covered
3.0x.
|
|
·
|
AGA was 93% invested as at 30
September 2024 and had unfunded commitments to the Apax Funds
(together with recallable distributions) of
€838m.
|
|
|
|
|
|
|
·
|
During the period, cash (including net current
assets) reduced from €107m at the end of June to €83m following
expected calls of c.€52m and distributions of c.€34m from the
Private Equity Funds.
|
|
|
|
Q3 2024
(EUR)
|
Q3 2024
(GBP)
|
H1 2024
(EUR)
|
H1 2024
(GBP)
|
|
NAV
|
1,199m
|
999m
|
1,237m
|
1,048m
|
|
NAV1 per share
|
2.45
|
2.04
|
2.52
|
2.13
|
|
|
|
|
|
|
|
|
|
% of NAV
|
Q3 2024
|
Q3
2024
constant
currency
|
|
Total NAV Return per
share1
|
|
(0.2%)
|
1.7%
|
|
Total Return1 - Private
Equity
|
77%
|
0.3%
|
2.2%
|
|
Total Return1 - Debt
Investments
|
16%
|
(2.2%)
|
0.3%
|
|
Total Return1 - Derived
Equity
|
0%
|
5.4%
|
9.3%
|
|
Cash & Others
|
7%
|
|
|
Portfolio highlights
|
·
|
AGA offers access to "Hidden Gems", a global
portfolio of mostly private companies that are not available to
public market investors elsewhere.
|
|
·
|
Apax has sharpened its focus on Tech, Services,
and Internet / Consumer where the "Hidden Gems" strategy is best
suited. As a result, there will be no dedicated healthcare sector
going forward.
|
|
·
|
The Private Equity portfolio is well diversified
across vintages with exposure to the most recent buyout fund, which
will be the future driver of AGA's performance, now representing 6%
of NAV, having signed or closed 9 investments. Similarly, the
predecessor fund has started exiting portfolio companies and will
be a significant source of distributions for AGA in coming
periods.
|
|
·
|
83% of AGA's portfolio was invested in Private
Equity at 30 September 2024, with the remaining 17% invested in
Debt investments. This portfolio is a source of additional returns
and income for AGA and provides balance sheet robustness and
capital flexibility. The Debt portfolio Total Return was -2.2% /
(+0.3% constant currency) in the quarter, with performance
primarily impacted by FX headwinds and adverse movements across a
small number of debt positions.
|
|
·
|
The Debt portfolio
maintained a strong income yield3 of c.9% and average
yield to maturity3 of c.11% at 30 September
2024.
|
|
·
|
The remaining two
Derived Equity positions were valued at €5.0m and represented less
than 1% of the invested portfolio at 30 September 2024.
|
For further information regarding the
announcement of AGA's Q3 2024 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
|
Investor Relations -
AGA
|
|
Telephone:
+44 207 666 6526
|
|
Email:
investor.relations@apaxglobalalpha.com
|
|
|
|
APPENDIX
Movements in
NAV
|
NAV
movements (€m)
|
Private
Equity
|
Debt
Investments
|
Derived
Equity
|
Cash
|
Facility
drawn
|
Other4
|
Q3 24 Total
|
|
NAV
at 30.06.24
|
901.1
|
224.5
|
4.6
|
103.9
|
-
|
2.7
|
1,236.8
|
|
+ Investments
|
52.4
|
1.0
|
-
|
(53.4)
|
-
|
-
|
-
|
|
- Distributions/
divestments
|
(33.5)
|
(26.9)
|
-
|
60.4
|
-
|
-
|
-
|
|
+ Interest and dividend
income
|
-
|
-
|
-
|
6.1
|
-
|
(0.3)
|
5.8
|
|
+/- Gains/(losses)
|
20.3
|
(4.3)
|
0.5
|
-
|
-
|
-
|
16.5
|
|
+/- FX
gains/(losses)5
|
(17.7)
|
(5.3)
|
(0.2)
|
(0.3)
|
-
|
-
|
(23.5)
|
|
+/- Costs and other
movements
|
-
|
-
|
-
|
(2.0)
|
-
|
-
|
(2.0)
|
|
- Dividends paid
|
-
|
-
|
-
|
(32.0)
|
-
|
-
|
(32.0)
|
|
+/- Performance fee
reserve6
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
|
+/- Shares purchased
|
-
|
-
|
-
|
(2.2)
|
-
|
-
|
(2.2)
|
|
+/- Revolving credit
facility
drawn/repaid
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
|
NAV
at 30.09.24
|
922.6
|
189.0
|
4.9
|
80.5
|
-
|
2.4
|
1,199.4
|
Private Equity
- operational metrics
|
Private Equity - operational
metrics
|
30 September
2024
|
30 June
2024
|
|
Portfolio year-over-year LTM revenue
growth2
|
7.1%
|
8.7%
|
|
Portfolio year-over-year LTM EBITDA
growth2
|
16.3%
|
15.6%
|
|
Enterprise Value / EBITDA valuation
multiple2
|
17.6x
|
17.1x
|
|
Net debt / EBITDA
multiple2
|
4.6x
|
4.3x
|
|
|
|
|
|
Debt
Investments - operational metrics
|
Debt Investments -
operational metrics3
|
|
30 September
2024
|
30 June
2024
|
|
Debt
average yield to maturity
|
|
11.1%
|
11.3%
|
|
Debt
average years to maturity
|
|
4.0
|
4.3
|
|
Debt
average income yield
|
|
9.1%
|
10.0%
|
Other Invested
Portfolio highlights
|
Invested Portfolio
analysis8
|
€m
|
€m
|
%
|
%
|
|
-
AEVI
|
2.3
|
|
0%
|
|
|
-
AEVII
|
21.9
|
|
2%
|
|
|
-
AVIII
|
33.7
|
|
3%
|
|
|
-
AIX
|
228.6
|
|
20%
|
|
|
-
AX
|
460.4
|
|
41%
|
|
|
-
AXI
|
65.7
|
|
6%
|
|
|
-
AMI
|
17.2
|
|
2%
|
|
|
-
AMI
II
|
3.2
|
|
0%
|
|
|
-
ADF
|
61.7
|
|
6%
|
|
|
-
ADF
II
|
22.5
|
|
2%
|
|
|
-
AGI
|
5.4
|
|
1%
|
|
|
Private Equity
|
|
922.6
|
|
83%
|
|
Debt Investments
|
|
189.0
|
|
17%
|
|
Derived Equity
|
|
5.0
|
|
0%
|
|
Total
|
|
1,116.6
|
|
100%
|
Footnotes
|
|
|
|
1
|
"Total NAV per share Return" means
the movement in NAV per share over the quarter plus any dividends
per share 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 metrics across the portfolio. Investments can be
excluded for reasons such as: investments in the financial services
sector; companies with negative EBITDA (or moving from negative to
positive EBITDA in the case of growth metrics); investments that
are written off; companies where EBITDA is not meaningful for
company specific reasons. Due to these adjustments, the
comparatives may not be on a like for like basis. LTM EBITDA Growth
represents 89% of AGA's Private Equity portfolio NAV, Net Debt /
EBITDA Multiple and Enterprise Value / EBITDA Valuation Multiple
represents 84% of AGA's Private Equity portfolio NAV
|
|
3
|
Debt operational metrics excludes
Vyaire
|
|
4
|
Other reflects net current
assets.
|
|
5
|
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
|
|
6
|
Movement in the performance fee
reserve reflects the performance fee accrued by the Company at 30
September 2024 adjusted for performance fee paid in the period.
This does not represent the underlying Private Equity portfolio's
carried interest.
|
|
7
|
Invested Portfolio excludes cash and
cash equivalents, revolving credit facility drawn, net current
assets, and performance fee accrued, including these the NAV was
€1,199.4m.
|
|
|
|
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 investment Company listed on the London Stock
Exchange. 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).
The Company makes Private Equity
investments in Apax Funds, and has a portfolio of primarily Debt
Investments, 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 over 50 years,
Apax has worked to inspire growth and ideas that transform
businesses. The firm has raised and advised funds with aggregate
commitments of nearly $80 billion. The Apax Funds invest in
companies across three global sectors of Tech, Services, 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.