LONDON (Alliance News) - Apax Global Alpha Ltd on Wednesday said its net asset value at the end of its first half had risen since the previous year, but was down since the end of December.
Apax Global Alpha, a London-listed private equity fund managed by Apax Guernsey Managers Ltd, which is in turn advised by Apax Partners LLP, said its net asset value came in at EUR901.1 million at June 30. This was ahead of the EUR885.9 million posted a year earlier, but lower than the EUR936.5 million recorded at the end of December .
Apax said its performance was "broadly flat" against volatile markets, with total return down 0.6%, but up 0.6% on a constant currency basis.
The company noted a positive performance from its private equity and derived equity holdings, but said this was offset by the derived debt portfolio performing below expectations, mainly due to fair value movements in a limited number of portfolio positions. Adverse foreign exchange movements also hit its total return during the period, Apax said.
Apax declared an interim dividend of 3.95 pence for the period, having paid no interim dividend a year earlier.
Apax said the second half of the year was likely to see " further volatility, as markets react to economic and political developments", but noted that it continued to maintain its policy of holding half its portfolio in derived investments. This "should enable the investment manager to take advantage of any resulting market dislocations," Apax said.
Apax said it only has around 2.0% direct exposure to the UK in its investment portfolio and is therefore "relatively unaffected" by the UK market turmoil and weaker sterling.
"I am pleased to present the company's 2016 half year results, which I believe demonstrate the resilience of the Apax portfolio. Despite challenging market conditions, the portfolio finished only marginally down for the first half of the year," said Chairman Tim Breedon.
Shares in Apax were up 1.0% at 127.62p on Wednesday morning.
By Hannah Boland; hannahboland@alliancenews.com; @Hannaheboland
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Apax Global Alpha (APAX)