Apax Global Alpha Regulatory News (APAX)

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Strong performance across the portfolio in the first six months of 2021: AGA's Total NAV Return1 was 17.4% (14.9% constant currency).

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Total Adjusted NAV increased to c. €1.4bn with Adjusted NAV per share increasing from €2.45 (£2.19) to €2.81 (£2.41) in the six months to 30 June 2021.

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Focus on four target sectors and a "good-to-great" strategy of business improvement in Private Equity driving strong returns in the portfolio.

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The Apax Funds were able to identify attractive opportunities to invest, with AGA deploying €85m across eleven new Private Equity investments (seven in Apax X, two in the Apax Digital Fund, one in the AMI Opportunities Fund, and one joint investment by the AMI Opportunities Fund and the Apax Digital Fund).

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Record distributions of €131.1m received from full and significant partial Private Equity exits, deployed into 13 new Derived Debt positions to absorb liquidity in the fund into attractive yield investments.

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New commitment of $90m to the Apax Digital Fund II, the successor fund to the Apax Digital Fund which invests in minority equity and growth buyout opportunities in mid-market technology companies.

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Liquidity position is healthy with available cash after net liabilities of €29m, and undrawn evergreen revolving credit facility of €140m. Derived Investments of €439m3 provide a further source of funding for AGA.

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Interim dividend of 5.97 pence per share declared, in line with the stated policy to distribute 5% of NAV p.a.

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Significant growth in Adjusted NAV3 to just under €1.4 billion, up from €1.2 billion as at 31 December 2020, despite dividend payment of 5.28 pence per share during the first quarter.

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Portfolio weighted towards Private Equity (68%), vs. Derived Debt (29%) and Derived Equity (3%).

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Reflecting the strong investment pace in Q2, AGA was 98% invested as at 30 June 2021 and had outstanding commitments to the Apax Funds (together with recallable distributions) of €419m.

H1 2021 (EUR)

H1 2021 (GBP)

Adjusted NAV3

EUR 1,380m

GBP 1,183m

Adjusted NAV3 per share

EUR 2.81

GBP 2.41

NAV3 per share

EUR 2.82

GBP 2.42

Exposure

H1 2021

H1 2021constant currency

Total NAV Return1

17.4%

14.9%

Total Return1 - Private Equity

66%

24.5%

21.9%

Total Return1 - Derived Debt

29%

7.3%

4.5%

Total Return1 - Derived Equity

3%

28.6%

25.0%

Cash & Others

2%

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The Private Equity portfolio performed strongly in the first six months of 2021: Total Return1 of 24.5% (21.9% constant currency).

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Deal activity reflective of Apax's 'good to great' investment strategy and sub-sector expertise, focusing on opportunities where there is a significant re-rating at exit based on business quality improvement.

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Aggregate Gross IRR4 and Gross MOIC4 on Private Equity exits in H1 2021, excluding the InnovAge and Global-e IPOs (primary only), were 52.4% and 3.9x respectively. Exits were achieved at an average uplift2 of 25.7%, reflecting the quality of the portfolio.

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On a look-through basis, AGA invested c.€85m5 in eleven new investments that closed during the period.

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Continued strong earnings growth and operating performance from the portfolio companies: LTM Revenue6 and EBITDA growth6 of 22.3% and 42.7% respectively across the Private Equity portfolio.

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Good performance across the portfolio with Derived Investments achieving a Total Return1 of 9.8% (7.0% constant currency) in H1 2021, driven by performance in Derived Debt which makes up 88% of the Derived Investments portfolio, with a Total Return1 of 7.3% (4.5% constant currency).

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In Derived Debt the focus remained on investments in lower risk first and second lien loans where there is a high degree of visibility on cash flow, and in target sub-sectors where Apax has unique insights gained from the Private Equity investment activity - €161.3m deployed across 13 new debt positions in H1 2021.

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Strong operating performance from underlying Derived Debt portfolio companies: LTM EBITDA growth from 26.2% to 37.3% in the six months to 30 June 2021.

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Reflecting the increased share of first lien loans and the impact of lower base rates in the portfolio, the overall yield to maturity of the portfolio reduced to 6.8% at 30 June 2021.

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Derived Equity delivered Total Return1 of 28.6% (25.0% constant currency) in the first six months of 2021.

Adjusted NAV3 movements (€m)

Private Equity

Derived Investments

Cash

Treasury Shares

Facility drawn

Other

H1 2021 Total

Adjusted NAV at 31.12.20

788.3

319.4

124.6

-

-

(31.1)

1,201.2

+ Investments

78.7

161.3

(218.6)

-

-

(21.4)

-

- Distributions/ divestments

(131.1)

(69.8)

196.8

-

-

4.1

-

+ Interest and dividend income

-

-

9.4

-

-

0.4

9.8

+/- Gains/(losses)

161.0

17.8

-

-

-

-

178.8

+/- FX gains/(losses)7

19.7

10.5

0.2

-

-

-

30.4

+/- Costs and other movements

-

-

(4.0)

-

-

(1.4)

(5.4)

 - Dividends paid

-

-

(30.0)

-

-

-

(30.0)

+/- Performance fee reserve

-

(4.5)

-

-

-

-

(4.5)

+/- Treasury shares

-

-

-

-

-

-

-

+/- Revolving credit facility

drawn/repaid

-

-

-

-

-

-

-

Adjusted NAV at 30.6.213

916.6

434.7

78.4

-

-

(49.4)

1,380.3

Private Equity - operational metrics

30 June 2021

31 December 2020

Portfolio year-over-year LTM revenue growth6

22.3%

6.6%

Portfolio year-over-year LTM EBITDA growth6

42.7%

20.8%

Enterprise Value / EBITDA valuation multiple6

18.0x

16.9x

Net debt / EBITDA multiple6

3.7x

3.9x

Derived Investments - operational metrics

30 June 2021

31 December 2020

Debt year-over-year LTM EBITDA growth8

37.3%

26.2%

Debt average income yield to maturity8

6.8%

8.1%

Debt average years to maturity

5.9

5.7

Debt average income yield9

6.4%

7.3%

Invested Portfolio analysis10

€m

€m

%

%

Private Equity

916.6

68%

- AMI

50.0

4%

- AEVI

6.6

0%

- AEVII

26.2

2%

- AVIII

172.2

13%

- AIX

522.6

38%

- ADF

35.3

3%

- AX

103.7

8%

Derived Investments

439.2

32%

- Derived Debt

388.6

29%

- Derived Equity

50.6

3%

Total

1,355.8

100%

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.