Apax Global Alpha Regulatory News (APAX)

·

AGA achieved a Total NAV Return1 of (0.1%) ((1.9%) constant currency) in the three months ended 30 September 2023. Adjusted NAV2 was largely unchanged at ?1.3bn (30 June 2023: ?1.3bn), equivalent to a NAV per share of ?2.57/£2.23.

·

Performance from the Debt portfolio helped offset multiple driven declines in Private Equity in Q3 2023.

·

The Private Equity portfolio remained resilient in the face of an uncertain market environment and earnings growth continued to be the main driver of NAV returns with portfolio companies achieving an average LTM EBITDA growth of 16.4%3 to the end of September.

·

AGA received ?35m in distributions from the Apax Funds, including from two full exits achieved at an average uplift of 11%4.

·

There was continued momentum in the Private Equity portfolio with AGA deploying ?28m5 across two new Private Equity investments in the quarter with a further five investments post quarter end. 

·

The Debt portfolio, which primarily consists of first and second lien loans, achieved a Total Return1 of 5.6% in the quarter.

·

AGA was 90% invested as at 30 September 2023 and had unfunded commitments to the Apax Funds (together with recallable distributions) of ?988m (30 June 23: ?985m).

·

At 30 September 2023, AGA's invested portfolio was split 74% in Private Equity and 25% in Debt investments, with the remaining 1% invested across three Equity positions.

·

At the period end, AGA had ?119m in cash in anticipation of calls from the Private Equity portfolio in Q4 2023.

·

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. The new facility remained undrawn as at 30 September 2023.

Q3 2023 (EUR)

Q3 2023 (GBP)

H1 2023 (EUR)

H1 2023 (GBP)

Adjusted NAV2

1,264m

1,096m

1,299m

1,116m

Adjusted NAV2 per share

2.57

2.23

2.64

2.27

NAV2 per share

2.59

2.24

2.65

2.28

% of NAV

Q3 2023

Q3 2023 constant currency

Total NAV Return1

(0.1%)

(1.9%)

Total Return1 - Private Equity

67

(1.7%)

(3.6%)

Total Return1 - Debt Investments

22

5.6%

3.4%

Total Return1 - Derived Equity

1

(3.4%)

(3.8%)

Cash & Others

10

·

AGA offers shareholders access to a global portfolio of mostly private companies that are not available to them elsewhere.

·

At 30 September 2023, the invested portfolio was split across the four core Apax sectors: Tech & Digital (39%), Services (28%), Healthcare (17%), and Internet/Consumer (16%).

·

In Private Equity, earnings growth remained a key driver of performance with average LTM EBITDA growth to 30 September 2023 of 16.4%3 across portfolio companies (30 June 2023: 14.1%). The increase was largely driven by M&A, notably EcoOnline's acquisition of Ecometrica and Ole Smoky's acquisition of Tanteo.

·

LTM Revenue growth to 30 September 2023 was 14.7% (30 June 2023: 16.0%) and the weighted average valuation multiple across the portfolio reduced slightly to 16.2x3 (30 June 2023: 16.3x).

·

Leverage across the Apax Funds' portfolio was 4.5x3 at 30 September 2023 (30 June 2023: 4.4x), at the lower end of the peer average.

·

AGA's Debt portfolio continued to provide attractive returns, achieving a 42.3% cumulative constant currency Total Return over the past five years compared to the S&P/LSTA leveraged loan index6 return of 24.4% in the same 5-year period.

·

The Debt portfolio absorbs cash not invested in Private Equity, enhances the robustness of AGA's balance sheet, provides a steady flow of income to support dividends, and additional returns.

·

There was one new investment in Debt in Q3 2023 and six realisations. There were no new investments or exits in Derived Equity.

Adjusted NAV movements (?m)

Private Equity

Derived Investments

Cash

Treasury Shares

Facility drawn

Other7

Q3 2023

Total

Adjusted NAV at 30.06.23

858.9

352.4

86.4

-

-

1.0

1,298.7

+ Investments

39.3

4.8

(44.1)

-

-

-

-

- Distributions/ divestments

(34.7)

(73.5)

100.7

-

-

7.5

-

+ Interest and dividend income

-

-

9.3

-

-

0.8

10.1

+/- Gains/(losses)

(29.8)

3.0

-

-

-

-

(26.8)

+/- FX gains/(losses)8

15.8

6.5

0.1

-

-

-

22.4

+/- Costs and other movements

-

-

(0.4)

-

-

(4.4)

(4.8)

 - Dividends paid

-

-

(32.8)

-

-

-

(32.8)

+/- Performance fee reserve9

-

(2.6)

-

-

-

-

(2.6)

+/- Shares purchased

-

-

-

-

-

-

-

+/- Revolving credit facility

drawn/repaid

-

-

-

-

-

-

-

Adjusted NAV at 30.09.23

849.5

290.6

119.2

-

-

4.9

1,264.2

Private Equity - operational metrics

30 September 23

30 June 23

Portfolio year-over-year LTM revenue growth3

14.7%

16.0%

Portfolio year-over-year LTM EBITDA growth3

16.4%

14.1%

Enterprise Value / EBITDA valuation multiple3

16.2x

16.3x

Net debt / EBITDA multiple3

4.5x

4.4x

Derived Investments - operational metrics

30 September 23

30 June 23

Debt average yield to maturity

12%

13.3%

Debt average years to maturity

4.6

4.6

Debt average income yield

10%

11.4%

Invested Portfolio analysis10

?m

?m

%

%

- AEVI

2.2

0%

- AEVII

23.7

3%

- AVIII

60.4

5%

- AIX

286.8

25%

- AX

410.8

36%

- AXI

(11.3)

(1%)

- AMI

14.7

1%

- AMI II

(1.4)

(0%)

- ADF

52.0

5%

- ADF II

5.7

0%

- AGI

5.9

0%

Private Equity

849.5

74%

- Derived Debt

283.1

25%

- Derived Equity

13.1

1%

Derived Investments

296.2

26%

Total

1,145.7

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.