Apax Global Alpha Regulatory News (APAX)

·

AGA's Adjusted NAV1 was ?1.29bn (FY22 ?1.30bn) in 2023, equivalent to an Adjusted NAV per share of ?2.62/£2.27. Movement in Adjusted NAV was driven by an increase in NAV of the Debt and Private Equity portfolios, offset by ?65m of dividends paid to shareholders and FX movements.

·

Total NAV Return2 was 4.1% (6.1% constant currency), with significant return contribution from the Debt portfolio, a unique feature of AGA which absorbs capital not invested in Private Equity to generate returns and income.

·

Private Equity performance was primarily driven by earnings growth across the underlying portfolio companies, with average LTM EBITDA3 growth of 18.0% at 31 December 2023, broadly in line with the prior year (FY22 18.5%).

·

AGA received ?90m in distributions from the Apax Funds during the year, including from six full exits achieved at an average uplift of 20%4.

·

During 2023, AGA deployed c.?95m on a look-through basis across ten new investments5. The majority of this capital was invested in the second half, as the outlook improved, and more compelling opportunities emerged.

·

Consistent with previous periods, and in the context of the Private Equity commitments made by AGA and future calls, the Debt portfolio maintained a greater exposure to first lien loans. The portfolio achieved a Total Return2 of 11.8% in the year (14.4% constant currency).

·

During 2023, and in light of the increasing share price discount to NAV, the Board undertook a detailed review of the Company's capital allocation policy. No change was made, but a key priority was reaffirmed to ensure continued cash returns to shareholders via regular dividends. The Board is pleased to have now returned c.?444m, or c.50% of the original IPO NAV, to shareholders in this way and has determined a final dividend of 5.64 pence per share for 2023, expected to be paid on 4 April 2024.

·

Post year-end, on 1 March 2024, Karl Sternberg joined the Board as a Non-Executive Director. It is intended that he will replace Tim Breedon as Chairman in the second half of 2024. Concurrent with Karl's appointment, Chris Ambler retired as a Director on 1 March, after nearly nine years in the role.

·

AGA was 93% invested as at 31 December 2023 and had unfunded commitments to the Apax Funds (together with recallable distributions) of ?919m, reducing by c.?86m from 31 December 2022: (c.?1.0bn).

·

At 31 December 2023, AGA's invested portfolio was split 74% in Private Equity and 25% in Debt Investments, with the remaining 1% invested across three Derived Equity positions.

·

At the period end, AGA had ?94m in cash (including net current assets) in anticipation of capital calls from Apax XI, ADF, and AGI and the dividend payable in Q1 2024.

·

On 5 September 2023, AGA entered into a new multi-currency revolving credit facility of ?250m with SMBC Bank International plc and JPMorgan Chase, N.A., London Branch, replacing the

facility with Credit Suisse AG, London Branch. The new facility was undrawn as at 31 December 2023.

FY 2023 (EUR)

FY 2023 (GBP)

FY 2022 (EUR)

FY 2022 (GBP)

Adjusted NAV1

1,288m

1,116m

1,299m

1,150m

Adjusted NAV1 per share

2.62

2.27

2.65

2.34

NAV1 per share

2.64

2.28

2.65

2.34

% of NAV

FY 2023

FY 2023 constant currency

Total NAV Return2

4.1%

6.1%

Total Return2 - Private Equity

69%

2.4%

4.5%

Total Return2 - Debt Investments

23%

11.8%

14.4%

Total Return2 - Derived Equity

1%

14.8%

16.8%

Cash & Others

7%

·

AGA offers access to a global portfolio of mostly private companies that are not available to public market investors elsewhere.

·

The invested portfolio is well diversified across the four Apax sectors with Tech & Digital (41%) making up the largest exposure, followed by Services (27%), Healthcare (15%), and Internet/Consumer (17%) at 31 December 2023.

·

The Private Equity portfolio is balanced across Apax Fund vintages, with 40% in the investing phase, 38% in the maturity phase, and 22% in the harvesting phase.

·

In the Private Equity portfolio, valuation multiples decreased slightly from 17.2x to 16.6x at 31 December 2023, having already readjusted from the peak in December 2021. Most of the decline was due to negative movements from the Apax Funds' listed holdings which represented c.7% of the Private Equity portfolio at 31 December 2023. Average leverage reduced to 4.6x net debt / EBITDA at year-end (FY22: 4.8x).

·

Capital not invested in Private Equity is primarily invested in Debt Investments to absorb excess liquidity not invested in Private Equity, thereby limiting cash drag, producing additional returns, and enhancing the robustness of AGA's balance sheet.

·

Over the last five years, the Debt portfolio has achieved a 45.9% cumulative constant currency Total Return, versus 32.5% for the S&P/LSTA Leveraged Loan Index in the same 5-year period6.

·

AGA invested ?45.2m across four new Debt positions and received ?100.6m from ten full and partial disposals.

·

AGA still has a small exposure to Derived Equity, and following the sale of two positions in 2023, AGA currently holds three positions valued at ?15.6m.

Adjusted NAV movements (?m)

Private Equity

Debt Investments

Derived Equity

Cash

Treasury Shares/ Facility drawn

Other7

Total

Adjusted NAV at 31.12.22

871.0

340.6

23.5

68.0

-

(3.7)

1,299.4

+ Investments

89.7

45.2

-

(128.1)

-

(6.8)

-

- Distributions/ divestments

(90.4)

(100.6)

(10.6)

202.2

-

(0.6)

-

+ Interest and dividend income

-

-

-

31.2

-

6.3

37.5

+/- Gains/(losses)

-

17.2

3.0

-

-

-

58.6

+/- FX gains/(losses)8

38.4

(8.2)

(0.3)

0.3

-

-

(26.2)

+/- Costs and other movements

(18.0)

-

-

(6.9)

-

(2.9)

(9.8)

 - Dividends paid

-

-

-

(65.3)

-

-

(65.3)

+/- Performance fee reserve9

-

(6.0)

(0.6)

-

-

-

(6.6)

+/- Shares purchased

-

-

-

-

-

-

-

+/- Revolving credit facility

drawn/repaid

-

-

-

-

-

-

-

Adjusted NAV at 31.12.23

890.7

288.2

15.0

101.4

-

(7.7)

1,287.6

Private Equity - operational metrics

31 December 2023

31 December 2022

Portfolio year-over-year LTM revenue growth3

12.1%

21.5%

Portfolio year-over-year LTM EBITDA growth3

18.0%

18.5%

Enterprise Value / EBITDA valuation multiple3

16.6x

17.2x

Net debt / EBITDA multiple3

4.6x

4.8x

Debt Investments - operational metrics

31 December 2023

31 December 2022

Debt average yield to maturity

12.0%

12.1%

Debt average years to maturity

4.4

5.1

Debt average income yield

10.4%

9.9%

Invested Portfolio analysis10

?m

?m

%

%

- AEVI

2.3

0%

- AEVII

25.2

2%

- AVIII

60.9

5%

- AIX

268.0

22%

- AX

447.3

37%

- AXI

4.1

0%

- AMI

14.9

1%

- AMI II

(0.5)

0%

- ADF

53.6

5%

- ADF II

8.9

1%

- AGI

6.0

1%

Private Equity

890.7

74%

Debt Investments

294.2

25% 

Derived Equity

15.6

1% 

Total

1,200.5

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" 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.