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 Return1 per share was (2.5%) and0.5% 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 (GBP)
31 Dec 2024 (EUR)
31 Dec 2024 (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 2025constant currency
Total NAV Return1
(2.5%)
0.5%
Total Return1 - Private Equity
86%
(2.7%)
0.3%
Total Return1 - 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 EBITDA2 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 yield3 of 7.9% and average yield to maturity3 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.
Contact details
Joint Brokers Jefferies International Limited Gaudi Le Roux Telephone: +44 (0)20 7548 4060 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
Other4
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 reserve6
-
2.5
0.4
(2.9)
-
-
-
+/- Shares purchased
-
-
-
(3.3)
-
-
(3.3)
+/- Revolving credit facility drawn/repaid
-
-
-
12.5
(12.5)
-
-
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 growth2
10.6%
8.9%
Portfolio year-over-year LTM EBITDA growth2
16.0%
14.1%
Enterprise Value / EBITDA valuation multiple2
18.0x
17.8x
Net debt / EBITDA multiple2
4.3x
4.5x
Debt Investments - operational metrics
Debt Investments - operational metrics3
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 analysis7
€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.
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.
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
QRFFLFIAERILIIE
