Apax Global Alpha Ld - Quarterly Results to 30 September 2024
07/11/2024 07:00
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RNS Number : 2621L Apax Global Alpha Limited 07 November 2024
(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 share(1) 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") EBITDA(2) 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
NAV(1) per share 2.45 2.04 2.52 2.13
% of NAV Q3 2024 Q3 2024
constant currency
Total NAV Return per share(1) (0.2%) 1.7%
Total Return(1) - Private Equity 77% 0.3% 2.2%
Total Return(1) - Debt Investments 16% (2.2%) 0.3%
Total Return(1) - 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 yield(3) of c.9% and average
yield to maturity(3) 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
(http://www.apaxglobalalpha.com/shareholder-information/results-and-publications)
.
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 Other(4) 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 reserve(6) - - - - - - -
+/- 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 growth(2) 7.1% 8.7%
Portfolio year-over-year LTM EBITDA growth(2) 16.3% 15.6%
Enterprise Value / EBITDA valuation multiple(2) 17.6x 17.1x
Net debt / EBITDA multiple(2) 4.6x 4.3x
Debt Investments - operational metrics
Debt Investments - operational metrics(3) 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 analysis(8) €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
(http://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
(http://www.apax.com) .
Apax is authorised and regulated by the Financial Conduct Authority in the UK.
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