Estimated Adjusted NAV as at 30 June 2024

Apax Global Alpha Limited

06 August 2024

 

 

(LSE: APAX)

Apax Global Alpha Limited

Estimated Adjusted NAV as at 30 June 2024

Apax Global Alpha Limited (LON: APAX), the closed-ended investment company providing access to the Apax Private Equity Funds, today announced its estimated Adjusted NAV as at 30 June 2024, having received the Apax Funds' valuations for Q2 2024. The performance of the individual funds is shown below (net of relevant fees and carried interest estimates)¹.

Apax Global Alpha Limited ("AGA" or the "Company") aims to offer investors superior long-term returns by providing access to a diversified portfolio of high-quality companies owned by the Apax Private Equity Funds. Capital not invested in Private Equity is deployed into a portfolio of predominantly debt instruments to generate additional returns and income.

NAV Developments to 30 June 2024:

At 30 June 2024, estimated NAV and Adjusted NAV² were the same at c.€1,237m (FY23 Adjusted NAV: c.€1,288m). This translates to an estimated NAV per share and Adjusted NAV² per share of €2.52 cents per share / £2.13 pence per share.

For the six months to 30 June 2024, estimated Total NAV Return was (1.4%) ((3.3%) constant currency), with estimated Q2 Total NAV Return of (1.0%) ((1.5%) constant currency).

As previously disclosed, performance in the first six months of 2024 was negatively impacted by writedowns on the value of Vyaire, an Apax VIII portfolio company, across both the Private Equity and Debt portfolios as a result of adverse trading developments at the company. Excluding the impact of Vyaire, AGA's estimated Total NAV Return would have been 1.5% ((0.3%) constant currency) for the six months to 30 June 2024.

Portfolio update:

At 30 June 2024, c.80% of the invested portfolio was in Private Equity with the vast majority of the remaining portfolio held in Debt investments.

In the first six months of the year, on a look-through basis, AGA deployed €48m across three new Private Equity investments and significant portfolio company bolt-on acquisitions.

In Q2 and post period end, there were also five realisations in the Private Equity portfolio. These include the final sell-down of shares in Genius Sports and Baltics Classified Group in July as well as the full exit of Healthium, AffiniPay, and idealista which are expected to close in the coming months.

New capital allocation framework:

In June the AGA Board announced a new capital allocation framework. The new framework comprises regular dividends to shareholders and the creation of a "Distribution Pool" which earmarks funds for share buybacks. €30m was allocated to the "Distribution Pool" immediately to take advantage of the investment opportunity presented by the current wide discount and share buybacks have commenced.

Apax Funds valuation movements:

The Apax Funds to which AGA has exposure have reported their valuation movements for the period from 31 March 2024 to 30 June 2024 and these are set out in the table below, alongside AGA's look-through Private Equity NAV as at 30 June 2024. Further details on the composition of AGA's portfolio as at 30 June 2024 will be included in AGA's 2024 Interim Results which will be released on 5 September 2024.

	Valuation at 31.03.243	Capital Calls	(Distributions)	Unrealised Gain / (Loss)	Valuation at 30.06.243	Like-for-like % change4	AGA Private Equity NAV at 30.06.245 €m
Apax XI EUR €m	40	13	-	-	53	-	5.6
Apax XI USD $m	192	63	-	(16)	239	(6%)	11.9
Apax X EUR €m	2,576	19	-	(6)	2,589	(0%)	232.7
Apax X USD $m	9,630	56	-	(89)	9,597	(1%)	231.7
Apax IX EUR €m	1,835	-	-	(16)	1,819	(1%)	126.0
Apax IX USD $m	5,535	-	-	(90)	5,445	(2%)	126.7
Apax VIII EUR €m	346	-	-	(34)	312	(10%)	17.3
Apax VIII USD $m	411	-	-	(48)	363	(12%)	19.0
Apax Europe VII €m	161	-	-	(13)	148	(8%)	21.1
Apax Europe VI €m	286	-	-	(6)	280	(2%)	2.2
Apax Digital $m	1,361	65	(22)	19	1,423	1%	59.6
Apax Digital II $m	454	21	-	22	497	5%	21.3
Apax Global Impact $m	100	-	-	(16)	84	(16%)	6.2
AMI $m	296	5	(5)	14	310	5%	17.2
AMI II $m	26	6	-	9	41	28%	2.6
Total Private Equity							€901.1m

Contact details

Investor Relations - AGA Katarina Sallerfors T: [phone] E: [e-mail]

Footnotes

1	AGA holds exposures to the Apax Funds via various individual holdings which also have different fee structures. Additionally, AGA has commitments in different currency sleeves of the Apax Funds. These allocations may differ by fund and may also be different to the currency allocations of the Apax Funds themselves.
2	Adjusted NAV represents estimated NAV less estimated performance fee reserve as at 30 June 2024.
3	Where relevant, the valuations are expressed net of any estimated carried interest payable should the funds hypothetically be liquidated as at 31 March 2024 and 30 June 2024 respectively.
4	The like-for-like change represents the change in valuation from the prior to the current reporting date, adjusting for changes due to calls and distributions. Any calls made during the period are added to the prior valuation and distributions are added back to the current valuation.
5	Represents AGA's look-through NAV to each Fund sleeve in euro at 30 June 2024.

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 announcement 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 more than $77 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 is authorised and regulated by the Financial Conduct Authority in the UK.

 

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