(Alliance News) - Apax Global Alpha Ltd on Tuesday reported a rise in net asset value in 2019, and added that it is "well-positioned" for 2020 and beyond.
In 2019, Apax Global Alpha, which invests in private equity and derived investments, said its net asset value total return was 23%, in line with the target range of 12% to 15%. Total return from its private equity portfolio was 34%. In its derived debt unit it was at 12%, with total return at its derived equity portfolio a more-modest 9.1%.
The 23% total return was the FTSE 250 investment company's best since its 2015 flotation on the London Stock Exchange, Apax added.
Net asset value per share was 17% higher year-on-year at EUR2.22 from EUR1.90. Net asset value climbed 18% to EUR1.10 billion from EUR930.8 million.
Shares in the company were trading 5.3% higher at 159.49 pence each in London on Tuesday morning.
Apax Global Alpha added: Public equity markets performed strongly during the year. Most of the gains in public markets were however driven by an increase in valuation multiples rather than underlying earnings growth.
"Towards the end of the year, improvements in confidence over the economic outlook, further support from central banks, and more optimism that trade disputes could be resolved supported strong valuation gains."
The company raised its dividend by 13% to 9.54p per share from 8.45p.
"Public market valuations are pricing in a scenario for 2020 which implies a reduction of recession risk, increase in global manufacturing, and an eventual resolution of global trade conflicts. With valuations already elevated when compared with historical averages, gains from further multiple expansion are unlikely to create similar opportunities in 2020 and beyond," Apax Global Alpha said.
"Superior returns are more likely to be achieved by leveraging insight and experience in particular sectors. The board therefore believes that Apax Global Alpha's investment approach is suited to the current market environment and is confident that the company is well-positioned to deliver further value generation in future."
By Eric Cunha; ericcunha@alliancenews.com
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Apax Global Alpha (APAX)