Apax Fund Valuation Comments

RNS Number : 6891T

Apax Global Alpha Limited

22 July 2020

 

(LSE: APAX)

Apax Global Alpha Limited

Comment from Investment Adviser on Valuations of certain Apax Funds as at 30 June 2020

Apax Global Alpha Limited ("AGA" or the "Company") has a portfolio of Private Equity and Derived Investments. Under its Private Equity strategy, AGA is a limited partner in certain Private Equity funds ("Apax Funds") advised by Apax Partners LLP (the "Investment Adviser").

Commenting on today's release of the Apax Funds' valuations as at 30 June 2020, Salim Nathoo, Member of the Investment Committee of the Investment Adviser, said:

"Valuations of the Apax VIII and Apax IX funds recovered strongly in the second quarter of 2020, driven by an overall rebound in public equity markets and by the overweight exposure of these funds to sub-sectors such as software, tech-enabled services, and online marketplaces which have proven more resilient to Covid-19's economic impacts and benefit from long-term structural growth. Overall, on a like for like basis, both funds are posting higher valuations than those of 31 December 2019.

In general, swift cost actions taken at the outset of the pandemic allowed Apax VIII and Apax IX portfolio companies to increase their operating leverage and benefit from a rebound in sales after the easing of lockdown restrictions. This benefit was more prominent in the sub-sectors highlighted above, which also saw the biggest rebound in public market comparables. The balance of the portfolio of Apax VIII and Apax IX felt the impact of Covid-19 with varying levels of severity. These portfolio companies are generally experiencing sales rebound post-lockdown at different rates, but cost actions are mitigating some of the negative impacts and preparing the portfolio for uncertain economic conditions ahead.

We look forward to discussing the performance of the Apax Funds' portfolio in more detail with AGA's shareholders upon release of AGA's 2020 Interim Results."

AGA will announce its 2020 Interim Results on 25 August 2020. The results will include the composition and valuation of the AGA portfolio as at 30 June 2020.

Contact details

Lorraine Rees Investor Relations - AGA

Telephone: [phone]

Email: [e-mail]

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 Partners") is a leading global private equity advisory firm and over its more than 40-year history, Apax Partners has raised and advised funds with aggregate commitments of over €40 billion.  Funds advised by Apax Partners invest in companies across four global sectors of Tech & Telco, Services, Healthcare and Consumer. These funds provide long ‐ term equity financing to build and strengthen world ‐ class companies.

For further information about Apax Partners, please visit www.apax.com. Apax Partners is authorised and regulated by the Financial Conduct Authority in the UK.

 

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