REG - Apax Global Alpha Ld - Quarterly Results to 31 March 2025
02/05/2025 07:00
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RNS Number : 1501H Apax Global Alpha Limited 02 May 2025
(LSE: APAX)
Apax Global Alpha Limited
Quarterly results for the period ended 31 March 2025
Apax Global Alpha (LON: APAX), the closed-ended investment company providing
access to the Apax Private Equity Funds, today announced its quarterly results
for the period ended 31 March 2025.
Karl Sternberg, Chairman of AGA, said:
"The Board believes that the Apax team, with its deep sector expertise, is
well suited to navigate the uncertain and challenging macro environment that
has emerged. The Board is concerned by the discount and we continue to
evaluate potential options to ensure that shareholders benefit from the
intrinsic value of AGA's investment portfolio."
Key highlights
· Apax Global Alpha's ("AGA") Net Asset Value ("NAV") was €1.16bn (FY24
€1.23bn) at 31 March 2025, equivalent to a NAV per share of €2.38/£2.00.
Total NAV Return(1) per share was (2.5%) and 0.5% on a constant currency
basis.
· Earnings growth from the Private Equity portfolio was largely offset by
adverse FX movements, while valuation multiples were generally flat overall.
· In light of the US tariff announcements in April, we expect 90% of the Private
Equity portfolio not to have any first-order impact, with only minor exposure
through select consumer and healthcare exposed assets. Second- and third-order
tariff impacts are still uncertain and remain too early to assess.
· The underlying Private Equity portfolio continues to demonstrate solid
operating performance with average LTM EBITDA growth of 16.0%.
· Continued strong performance from Apax XI investments which will be important
value drivers of future NAV growth (average LTM EBITDA growth of 25%).
· AGA deployed €52m on a look-through basis in closed Private Equity
investments in S&W and CohnReznick. One further investment in DLRdmv
signed during Q1 2025.
· The take private of Paycor and a partial exit of Lexitas closed post quarter
end. Including the signed exit of Assured Partners, AGA expects to receive
distributions of €55m.
· The Debt portfolio, a unique feature of AGA, was also affected by a
depreciating US dollar, achieving a Total Return of (0.8%) in euro terms, but
2.5% in constant currency.
· €36m was returned to shareholders in Q1 2025 through both dividends and
share buybacks (2.1m shares repurchased in the quarter).
· Post period end, Nadya Wells accepted an invitation to join the AGA Board with
effect from 1 July 2025.
Ralf Gruss, Partner at Apax and a member of the AGA investment committee,
said:
"AGA's underlying Private Equity portfolio companies continued to exhibit
steady performance in the quarter, with Total Return impacted by FX driven
headwinds. Since our last update, we have seen a sharp shift in the macro
backdrop, with recent US tariff announcements adding to market volatility.
While the situation is still evolving, the AGA Private Equity portfolio is
largely insulated with 90% of the portfolio not expected to face any
first-order impacts, reflecting the Apax Funds' focus on Tech, Services, and
Internet/Consumer businesses."
Financial highlights
· AGA's balance sheet remains robust, with expected capital calls in the next 12
months covered 1.8x, supported by €55m in expected distributions from the
Private Equity portfolio and €417m in available resources outside the
Private Equity portfolio.
· AGA was 100% invested as at 31 March 2025 and had unfunded commitments to the
Apax Funds (together with recallable distributions) of €770m.
· At 31 March 2025, AGA's invested portfolio was split 86% in Private Equity and
14% in Debt Investments which includes the remaining two Derived Equity
positions.
· At 31 March 2025, AGA had €15m in cash (including net current assets) and
was drawn down €12.5m on its revolving credit facility. The facility was
fully repaid on 2 May 2025
31 March 2025 (EUR) 31 March 2025 31 Dec 2024 (EUR) 31 Dec 2024 (GBP)
(GBP)
NAV 1,159m 970m 1,227m 1,015m
NAV per share 2.38 2.00 2.51 2.08
% of NAV Q1 2025 Q1 2025
constant currency
Total NAV Return(1) (2.5%) 0.5%
Total Return(1) - Private Equity 86% (2.7%) 0.3%
Total Return(1) - Debt Investments 14% (0.8%) 2.5%
Cash & Others 0%
Portfolio highlights
· AGA offers access to a global portfolio of private companies that are not
available to public market investors elsewhere.
· The Private Equity portfolio is diversified across investments in Tech (43% of
PE NAV), Services (35%), and Internet/Consumer (16%).
· Portfolio companies reported average Last Twelve Months ("LTM") Revenue growth
of 10.6% and LTM EBITDA(2) growth of 16.0% (FY24 8.9% and 14.1% respectively).
EBITDA growth was primarily driven by Tech and Services, offsetting a modest
slowdown in consumer facing businesses.
· Capital not invested in Private Equity is primarily invested in Debt
Investments to absorb excess liquidity, thereby limiting cash drag, producing
additional returns, and enhancing the robustness of AGA's balance sheet.
· Six debt positions were exited across Q1 2025 and post-period end, realising
€51m at an average price of c.99.8% of par.
· The Debt portfolio maintained a strong income yield(3) of 7.9% and average
yield to maturity(3) of 10.9% at 31 March 2025, with 60% of the Debt
Investments invested in more readily tradeable first lien loans.
· The remaining two Derived Equity positions were valued at €4.1m and
represented less than 1% of the invested portfolio at 31 March 2025.
For further information regarding the announcement of AGA's Q1 2025 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 Joint Brokers
Lorraine Rees / Aditya Jhaveri Jefferies International Limited
Investor Relations - AGA Gaudi Le Roux
T: +44 (0) 207 666 6526 Telephone: +44 (0)20 7548 4060
E: investor.relations@apaxglobalalpha.com Email: gleroux@jefferies.com
Investec Bank plc
David Yovichic
Telephone: +44 (0)20 7597 4952
Email: david.yovichic@investec.com
2025 Financial Calendar
Interim Results
4 September 2025
Capital Markets Day
TBC
Q3 2025 Results
November 2025
APPENDIX
Movements in NAV
NAV movements (€m) Private Equity Debt Investments Derived Equity Cash Facility drawn Other(4) Q1 25 Total
NAV at 31.12.24 978.8 192.3 4.6 45.5 - 5.5 1,226.7
+ Investments 41.0 2.1 - (43.1) - - -
- Distributions/ divestments - (30.9) - 26.9 - 4.0 -
+ Interest and dividend income - - - 3.9 - 0.7 4.6
+/- Gains/(losses) 2.5 0.2 (0.7) - - - 2.0
+/- FX gains/(losses)(5) (29.5) (5.9) (0.2) (0.1) - - (35.7)
+/- Costs and other movements - - - (3.1) - 0.2 (2.9)
- Dividends paid - - - (32.3) - - (32.3)
+/- Performance fee reserve(6) - 2.5 0.4 (2.9) - - -
+/- Shares purchased - - - (3.3) - - (3.3)
+/- Revolving credit facility - - - 12.5 (12.5) - -
drawn/repaid
NAV at 31.03.25 992.8 160.3 4.1 4.0 (12.5) 10.4 1,159.1
Private Equity - operational metrics
Private Equity - operational metrics 31 March 2025 31 December 2024
Portfolio year-over-year LTM revenue growth(2) 10.6% 8.9%
Portfolio year-over-year LTM EBITDA growth(2) 16.0% 14.1%
Enterprise Value / EBITDA valuation multiple(2) 18.0x 17.8x
Net debt / EBITDA multiple(2) 4.3x 4.5x
Debt Investments - operational metrics
Debt Investments - operational metrics(3) 31 March 2025 31 December 2024
Debt average yield to maturity 10.9% 10.1%
Debt average years to maturity 4.1 3.9
Debt average income yield 7.9% 8.3%
Other Invested Portfolio highlights
Invested Portfolio analysis(7) €m €m % %
- AEVI 1.3
- AEVII 20.6
- AVIII 24.5
- AIX 225.6
- AX 439.7
- AXI 155.0
- AMI 20.0
- AMI II 4.5
- ADF 64.9
- ADF II 30.6
- AGI 6.1
Private Equity 992.8 86%
Debt Investments 160.3 14%
Derived Equity 4.1 0%
Total 1,157.2 100%
Footnotes
1 "Total NAV Return" means the movement in the 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 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 90% of AGA's Private Equity portfolio
NAV, Net Debt / EBITDA Multiple and Enterprise Value / EBITDA Valuation
Multiple represents 85% of AGA's Private Equity portfolio NAV.
3 Debt operational metrics at 31 March 2025.
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 31 March 2025 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 €1,159.1m
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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