Apax Global Alpha Regulatory News (APAX)

·

AGA's portfolio proved resilient during the three months to 30 September 2022 with a Total NAV Return1 of 3.2% ((1.2%) constant currency). Adjusted NAV was €1.4bn, equivalent to a NAV per share of €2.86 (£2.51).

·

Private Equity Total Return1 of 3.0% ((1.6%) in constant currency) in the period reflects robust trading performance in the underlying portfolio companies and positive FX movements, offset by multiple compression.

·

Underlying portfolio companies delivered revenue and EBITDA growth of 17.7%2 and 17.6%2 respectively over the last twelve months.

·

Investment activity continued with the Apax Funds completing three new Private Equity investments in which, on a look-through basis, AGA deployed €28.9m in the third quarter.

·

AGA received distributions of €18.7m including €11.8m from two Private Equity investments which were exited at a weighted average uplift of 35% to last Unaffected Valuation3.

·

Strong balance sheet and healthy liquidity position with net cash of €89.3m and a €250m undrawn revolving credit facility as at 30 September 2022 provide comfort regarding commitment levels. Derived Investments of €394.5m provide balance sheet stability at attractive returns as well as a further significant source of capital flexibility.

·

AGA's Invested Portfolio, other than AMI which represents less than 2%, is revalued as at 30 September 2022. This methodology uses market references, public trading comparatives and/or transaction comparables as appropriate.

·

70% of the Invested Portfolio is in Private Equity, and the portfolio remains well diversified across key sectors and vintages.

·

15% of the Private Equity Invested Portfolio is in publicly listed holdings which are valued off quoted share prices as at 30 September. These reflect residual stakes in previously IPO'd portfolio companies.

·

AGA was 94% invested as at 30 September 2022 and had outstanding commitments to the Apax Funds (together with recallable distributions) of €1.2bn. It is expected that much of AGA's existing cash will be deployed in the Private Equity portfolio during Q4 2022, primarily as capital is being called to fund investments previously made by the Apax Funds.

Q3 2022

Q3 2022

H1 2022

H1 2022

Adjusted NAV4

EUR 1,402m

GBP 1,230m

EUR 1,392m

GBP 1,199m

Adjusted NAV4 per share

EUR 2.86

GBP 2.51

EUR 2.83

GBP 2.44

NAV4 per share

EUR 2.86

GBP 2.51

EUR 2.83

GBP 2.44

Exposure

Q3 2022

Q3 2022constant currency

Total NAV Return1

3.2%

(1.2%)

Total Return1 - Private Equity

66%

3.0%

(1.6%)

Total Return1 - Derived Debt

26%

6.0%

0.4%

Total Return1 - Derived Equity

2%

(2.9%)

(6.7%)

Cash & Others

6%

·

The Private Equity portfolio delivered a Total Return1 of 3.0% ((1.6%) constant currency) in the period.

·

Two exits were completed during the period with a weighted average uplift of 35% compared to last Unaffected Valuations3. Gross IRR5 and Gross MOIC5 in Q3 2022 were 13% and 1.5x respectively.

·

On a look-through basis, AGA invested c.€28.9m in three new investments.

·

Strong trading performance with LTM Revenue and EBITDA growth of 17.7%2 and 17.6%2 respectively across the Private Equity portfolio.

·

Derived Debt represents 94% of the Derived Investments portfolio and adds stability to performance at attractive returns. Derived Investments delivered a Total Return1 of 5.4% ((0.1%) constant currency) in the period to 30 September 2022.

·

96% of the Derived Debt Investments are floating rate instruments. The average yield to maturity of the portfolio increased to 10.4% at 30 September 2022 (June 22: 8.9%).

·

The Derived Debt portfolio has outperformed the S&P/LSTA leveraged loan index6 with a five-year cumulative return on a constant currency basis of 34.6% compared to 15.8%.

·

€13.9m was deployed in Derived Debt in the third quarter of 2022. There were no new investments in Derived Equity.

Adjusted NAV movements (€m)

Private Equity

Derived Investments

Cash

Treasury Shares

Facility drawn

Other7

Total

Adjusted NAV at 30.06.22

877.2

364.9

150.2

-

-

(0.1)

1,392.2

+ Investments

37.1

13.8

(46.8)

-

-

(4.1)

-

- Distributions/ divestments

(18.7)

(0.5)

19.2

-

-

-

-

+ Interest and dividend income

-

-

6.1

-

-

1.8

7.9

+/- Gains/(losses)

(14.1)

(4.3)

-

-

-

-

(18.4)

+/- FX gains/(losses)8

40.9

20.6

0.3

-

-

-

61.8

+/- Costs and other movements

-

-

(0.2)

-

-

(2.3)

(2.5)

 - Dividends paid

-

-

(34.8)

-

-

-

(34.8)

+/- Performance fee reserve9

-

(4.1)

-

-

-

-

(4.1)

+/- Shares purchased

-

-

-

-

-

-

-

+/- Revolving credit facility

drawn/repaid

-

-

-

-

-

-

-

Adjusted NAV at 30.09.22

922.4

390.4

94.0

-

-

(4.7)

1,402.1

Private Equity - operational metrics

30 September 2022

30 June 2022

Portfolio year-over-year LTM revenue growth2

17.7%

19.1%

Portfolio year-over-year LTM EBITDA growth2

17.6%

15.8%

Enterprise Value / EBITDA valuation multiple2

17.2x

17.9x

Net debt / EBITDA multiple2

4.9x

4.8x

Derived Investments - operational metrics

30 September 2022

30 June 2022

Debt average income yield to maturity10

10.4%

8.9%

Debt average years to maturity

5.3

5.6

Debt average income yield11

8.9%

7.3%

Invested Portfolio analysis12

€m

€m

%

%

- AEVI

2.5

0%

- AEVII

25.7

2%

- AVIII

119.0

9%

- AIX

421.2

32%

- AX

281.2

21%

- AMI

26.4

2%

- ADF

49.6

4%

- ADF II

(2.5)

0%

- AGI

(0.7)

0%

Private Equity

922.4

70%

- Derived Debt

369.6

28%

- Derived Equity

24.9

2%

Derived Investments

394.5

30%

Total

1,316.9

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.