REG - Apax Global Alpha Ld - Quarterly results for 31 March 2022
06/05/2022 07:00
For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20220506:nRSF5313Ka&default-theme=true
RNS Number : 5313K Apax Global Alpha Limited 06 May 2022
(LSE: APAX)
Apax Global Alpha Limited
Quarterly results for the period ended 31 March 2022
Key Q1 highlights
· Despite volatile markets, the portfolio proved resilient during
the quarter with a Total NAV Return(1) of (1.7%) ((3.8%) constant currency).
Valuations in the period were primarily affected by weakness in the listed
investments within the PE portfolio following IPOs.
· 72% of the Invested Portfolio is in Private Equity and the
portfolio is well diversified across four key sectors and vintages.
· Transformation of the portfolio companies is integral to
delivering strong operational performance with LTM EBITDA growth(2) and LTM
revenue growth(2) of 21.6% and 18.7% respectively.
· Deal activity in the period remained strong with the Apax Funds
completing one full exit (Unilabs) and four new investments (Alcumus,
YunZhangFang, T-Mobile, and Ole Smokey).
· AGA continued its strategy to invest in funds advised by Apax
with a new $60m commitment to the Apax Global Impact fund in the period.
· AGA's liquidity position is healthy comprising €146m available
cash and an evergreen revolving credit facility (RCF) of €140m which remains
undrawn. The Derived Investments portfolio of €358m provides a further
source of capital flexibility. This compares to total outstanding commitments
(including recallable distributions) to the Apax Funds of €441m.
Commenting on the results, Ralf Gruss, COO of Apax Partners, said:
"Against a backdrop of volatile markets and macro conditions impacted by
inflationary pressures and geopolitical risks, the established Apax Funds
strategy of creating alpha through business improvement, of investing in
coveted sub-sectors of prior expertise, and of buying selectively is well
suited to the period ahead. As a result, AGA's portfolio remains well
positioned for continued strong performance and to generate further value for
shareholders."
Financial highlights
· Adjusted NAV(3) was largely unchanged at €1.4 billion (FY21
€1.5 billion), including the dividend payment of €37.4m (6.36p per share)
during the quarter.
· Invested portfolio weighted towards Private Equity (72%) vs.
Derived Investments (28%).
· Post period end, AGA committed $40m to AMI II fund. Additionally,
the evergreen RCF was increased to €250m (from €140m) in keeping with the
higher NAV and the greater proportion of private equity in the portfolio today
than on inception, with the other key terms remaining unchanged. The RCF is
available for general corporate purposes, including short-term financing of
investments such as the drawdown on commitments to Apax Funds.
Q1 2022 (EUR) Q1 2022 (GBP)
Adjusted NAV(3) 1,419.6m 1,195.8m
Adjusted NAV(3) per share 2.89 2.44
NAV(3) per share 2.90 2.44
Exposure Q1 2022 Q1 2022
constant currency
Total NAV Return(1) (1.7%) (3.8%)
Total Return(1) - Private Equity 65% (3.1%) (5.4%)
Total Return(1) - Derived Debt 23% 2.8% 0.3%
Total Return(1) - Derived Equity 2% (0.7%) (2.1%)
Cash & Others 10%
Private Equity portfolio highlights
· The Private Equity Total Return(1) for the quarter was (3.1%)
((5.4%) constant currency), reflecting the current market backdrop.
· The portfolio focuses on four key sectors, with 42% in Tech &
Digital, 28% in Services, 13% in Healthcare, and 17% in Internet/Consumer.
· The portfolio remains well diversified across the fund lifecycle
with 27% in the investment phase, 55% in the maturity phase, and 18% in the
harvesting phase.
· On a look-through basis, AGA invested c.€45.8m in four new
private equity investments which closed during the period.
· Unilabs was fully exited in Q1 2022 with a Gross IRR(4) and Gross
MOIC(4) of 25.3% and 3.1x respectively.
Derived Investments portfolio highlights
· Steady performance of Derived Investments with a Total Return(1)
of 2.5% (0.1% constant currency) in Q1, primarily reflecting FX tailwinds.
· The portfolio remains weighted towards Tech and is predominantly
invested in debt instruments (91% of Derived Investments), of which the
majority are the lower risk first lien tranches (61% of Derived Investments).
· 96% of the Derived Debt portfolio is invested in floating rate
instruments minimising duration risk and providing return upside in a rising
interest environment
· Continued deployment of excess liquidity into Derived Debt with
new investments of €22.4m(5).
For further information regarding the announcement of AGA's 2022 first 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
(http://www.apaxglobalalpha.com/shareholder-information/results-and-publications)
.
Contact details
Lorraine Rees
Investor Relations - AGA
Telephone: +44 (0)7889 089 220
Email: lorraine.rees@apax.com
APPENDIX
Movements in NAV
Adjusted NAV movements (€m) Private Equity Derived Investments Cash Treasury Shares Facility drawn Other 1Q 22 Total
Adjusted NAV at 31.12.21 1,012.9 327.2 108.5 - - 33.1 1,481.7
+ Investments 5.1 22.4 (21.4) - - (6.1) -
- Distributions/ divestments (68.8) (5.2) 107.4 - - (33.4) -
+ Interest and dividend income - - 4.4 - - 0.2 4.6
+/- Gains/(losses) (53.4) (2.9) - - - - (56.3)
+/- FX gains/(losses)(6) 22.6 7.9 1.3 - - - 31.8
+/- Costs and other movements - - (2.6) - - 0.1 (2.5)
- Dividends paid - - (37.4) - - - (37.4)
+/- Performance fee reserve(7) (0.9) 7.0 - (8.4) - - (2.3)
+/- Treasury shares - - (8.4) 8.4 - - -
+/- Revolving credit facility - - - - - - -
drawn/repaid
Adjusted NAV at 31.3.22 917.5 356.4 151.8 - - (6.1) 1,419.6
Private Equity - operational metrics
Private Equity - operational metrics 31 March 2022 31 December 2021
Portfolio year-over-year LTM revenue growth(2) 18.7% 20.2%
Portfolio year-over-year LTM EBITDA growth(2) 21.6% 35.3%
Enterprise Value / EBITDA valuation multiple(2) 19.0x 23.2x
Net debt / EBITDA multiple(2) 4.5x 4.2x
Derived Investments - operational metrics
Derived Investments - operational metrics 31 March 2022 31 December 2021
Debt year-over-year LTM EBITDA growth(8) 21.4% 22.2%
Debt average income yield to maturity(8) 6.7% 6.2%
Debt average years to maturity 5.8 6.1
Debt average income yield(9) 6.2% 5.4%
Other Invested Portfolio highlights
Invested Portfolio analysis(11 ) €m €m % %
- AMI 25.3 2%
- AEVI 7.7 1%
- AEVII 29.5 2%
- AVIII 127.6 10%
- AIX 441.7 35%
- ADF 40.9 3%
- ADF II (1.5) 0%
- AX 247.2 19%
Private Equity 918.4 72%
- Derived Debt 327.1 26%
- Derived Equity 30.7 2%
Derived Investments 357.8 28%
Total 1,276.2 100%
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. Adjusted NAV reflects Total NAV of €1,421.9m, after performance fee reserve
of €2.3m.
4. Gross MOIC and Gross IRR calculated based on the expected aggregate euro cash
flows since inception for the AIX holding only
5. Total invested of €22.4m includes €16.2m relates to follow-on investments
and delayed draws on existing positions HelpSystems, Infogain RCF and
Mitratech 1L and 2L during the period.
6. 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.
7. Movement in the performance fee reserve reflects the performance fee reserve
accrued by the Company's at
period end. This does not represent the underlying Private Equity portfolio's
carried interest.
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. Gross Asset Value weighted average of the respective metric across the Derived
Equity portfolio.
11. Invested Portfolio excludes cash and cash equivalents, revolving credit
facility drawn and net current assets, including these the NAV was €1,421.9m
and Adjusted NAV was €1,419.6m reflecting adjustment of €2.3m 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 Partners" 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 (mailto:rns@lseg.com)
or visit
www.rns.com (http://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 (https://www.lseg.com/privacy-and-cookie-policy)
. END QRFBRGDUBBGDGDURecent news on Apax Global Alpha
See all newsREG - Apax Global Alpha Ld - Apax IX agrees to sell Healthium
AnnouncementREG - Apax Global Alpha Ld - Quarterly Results to 31 March 2024
AnnouncementREG - Apax Global Alpha Ld - Result of AGM
AnnouncementREG - Apax Global Alpha Ld - Audit Committee Change
AnnouncementREG - Apax Global Alpha Ld - Apax Funds to acquire IANS
Announcement