TIDMAPAX
RNS Number : 5363X
Apax Global Alpha Limited
05 May 2021
(LSE: APAX)
Apax Global Alpha Limited
Quarterly results for the period ended 31 March 2021
Key highlights
-- Strong performance during the quarter: AGA's Total NAV
Return(1) was 10.4% (6.8% constant currency).
-- Focus on four key sectors and a strategy of business
improvement in private equity driving strong returns in the
portfolio.
-- Two full exits signed or closed (Boats Group, Signavio), one
significant partial exit (Psagot), and one public listing
(InnovAge) in Private Equity. Excluding the InnovAge IPO (primary
only), the average uplift on exits was 50.5%(2) to previous
Unaffected Valuations(2) .
-- Apax X continues to have a strong pipeline of new
investments, having signed or closed six new deals in the first
quarter.
-- The Derived Investment portfolio had a Total Return(1) of
8.0% in Q1, driven by strong performance in Derived Debt which
makes up the largest part of the Derived Investment portfolio and a
rebound in the Derived Equity positions.
-- AGA's liquidity position is healthy with EUR100m of cash and
its evergreen revolving credit facility of EUR140m undrawn. Derived
Investments of EUR369m(3) provide a further source of funding for
AGA.
-- Consumer sector renamed 'Internet / Consumer' (incorporating
all online marketplaces previously included under Services) to
reflect increased focus on digital consumer opportunities away from
traditional retail.
Commenting on the results, Ralf Gruss, COO of Apax Partners,
said:
"It has been a very good start to the year with AGA continuing
to deliver strong NAV performance in the quarter. There is a strong
pipeline of new investments and the current portfolio is performing
well, benefitting from a focus on sectors that are showing strong
structural growth, and investment in digital enablement and digital
acceleration. As global economies continue to open, AGA's portfolio
is well positioned for continued growth and to generate further
value for shareholders."
Financial highlights
-- Significant growth in Adjusted NAV(3) to EUR1.3 billion, up
from EUR1.2 billion in the last quarter, despite dividend payment
of 5.28p per share during the quarter.
-- Portfolio weighted towards Private Equity (69%) vs. Derived Investments (31%).
-- AGA was 93% invested as at 31 March 2021 and had outstanding
commitments to the Apax Funds (together with recallable
distributions) of EUR443m.
Q1 2021 (EUR) Q1 2021 (GBP)
Adjusted NAV (3) EUR 1,297m GBP 1,106m
-------------- --------------
Adjusted NAV (3) per EUR 2.64 GBP 2.25
share
-------------- --------------
NAV (3) per share EUR 2.65 GBP 2.25
-------------- --------------
Exposure Q1 2021 Q1 2021
constant currency
Total NAV Return(1) 10.4% 6.8%
--------- -------- -------------------
Total Return(1) -
Private Equity 64% 13.7% 9.6%
--------- -------- -------------------
Total Return(1) -
Derived Debt 25% 6.4% 2.5%
--------- -------- -------------------
Total Return(1) -
Derived Equity 4% 18.3% 14.1%
--------- -------- -------------------
Cash & Others 7%
--------- -------- -------------------
Private Equity portfolio highlights
-- The Private Equity portfolio performed strongly in the
quarter: Total Return(1) of 13.7% (9.6% constant currency).
-- 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.
-- Aggregate Gross IRR(4) and Gross MOIC(4) on Private Equity
exits in Q1 2021, excluding the InnovAge IPO (primary only), were
15.3% and 1.7x respectively. Including the InnovAge IPO the
aggregate Gross IRR(4) and Gross MOIC(4) increase to 134.5% and
2.5x, respectively.
-- On a look-through basis, AGA invested c.EUR70m(5) in six new
investments signed or closed during the period. (Azentio, Lutech,
Herjavec, PIB Group, Rodenstock and idealista)
-- Continued strong operating performance from the portfolio
companies with earnings growth accelerating in Q1 2021: LTM
Revenue(6) and EBITDA growth(6) of 12.1% and 44.2% respectively
across the Private Equity portfolio.
Derived Investments portfolio highlights
-- Derived Investments leverage the insights and expertise of
the Investment Advisor. The portfolio is weighted towards Tech and
is predominantly invested in Derived Debt (87% of Derived
Investments).
-- Strong performance of Derived Investments with a Total
Return(1) of 8.0% (4.0% constant currency) in Q1, driven by
performance in Derived Debt with a Total Return(1) of 6.4% (2.5%
constant currency).
-- Performance of Derived Equity rebounded during the period
with a Total Return(1) of 18.3% (14.1% constant currency).
-- Continued deployment of excess liquidity into Derived Debt
with new investments of EUR54.7m(7) .
For further information regarding the announcement of AGA's 2021
first quarter results, including the Company's results presentation
and dial-in details for today's analyst and investor webcast at
9.30am (UK time), please visit www.apaxglobalalpha.com .
Contact details
Katarina Sallerfors
Investor Relations - AGA
Telephone: +44 (0)207 666 6526
Email: katarina.sallerfors@apax.com
APPIX
Movements in NAV
Adjusted NAV(3) movements Private Derived Treasury Facility 1Q 20
(EURm) Equity Investments Cash Shares drawn Other Total
-------- ------------- -------- --------- --------- ------- --------
Adjusted NAV at 31.12.20 788.3 319.4 124.6 - - (31.1) 1,201.2
--------------------------- -------- ------------- -------- --------- --------- ------- --------
+ Investments 41.2 54.7 (126.8) - - 30.9 -
--------------------------- -------- ------------- -------- --------- --------- ------- --------
- Distributions/
divestments (101.5) (28.1) 129.6 - - - -
--------------------------- -------- ------------- -------- --------- --------- ------- --------
+ Interest and dividend
income - - 5.3 - - - 5.3
--------------------------- -------- ------------- -------- --------- --------- ------- --------
+/- Gains/(losses) 73.1 10.3 - - - - 83.4
--------------------------- -------- ------------- -------- --------- --------- ------- --------
+/- FX gains/(losses)(8) 29.6 12.6 0.4 - - - 42.6
--------------------------- -------- ------------- -------- --------- --------- ------- --------
+/- Costs and other
movements - - (3.2) - - 0.2 (3.0)
--------------------------- -------- ------------- -------- --------- --------- ------- --------
- Dividends paid - - (30.0) - - - (30.0)
--------------------------- -------- ------------- -------- --------- --------- ------- --------
+/- Performance fee
reserve - (2.9) - - - - (2.9)
--------------------------- -------- ------------- -------- --------- --------- ------- --------
+/- Treasury shares - - - - - - -
--------------------------- -------- ------------- -------- --------- --------- ------- --------
+/- Revolving credit - - -
facility
drawn/repaid - - - -
--------------------------- -------- ------------- -------- --------- --------- ------- --------
Adjusted NAV at
31.3.21 (3) 830.7 366.0 99.9 - - - 1,296.6
--------------------------- -------- ------------- -------- --------- --------- ------- --------
Private Equity - operational metrics
Private Equity - operational metrics 31 March 2021 31 December 2020
-------------
Portfolio year-over-year LTM revenue growth(6) 12.1% 6.6%
================================================ ============== ================
Portfolio year-over-year LTM EBITDA growth(6) 44.2% 20.8%
================================================ ============== ================
Enterprise Value / EBITDA valuation multiple(6) 18.2x 16.9x
================================================ ============== ================
Net debt / EBITDA multiple (6) 3.9x 3.9x
------------------------------------------------ -------------- ----------------
Derived Investments - operational metrics
Derived Investments - operational metrics 31 March 2021 31 December 2020
-------------
Debt year-over-year LTM EBITDA growth(9) 30.3% 26.2%
=========================================== ============= ================
Debt average income yield to maturity(9) 7.3% 8.1%
=========================================== ============= ================
Debt average years to maturity 5.6 5.7
=========================================== ============= ================
Debt average income yield(10) 6.9% 7.3%
=========================================== ============= ================
Equity price-to-earnings ratio(11) 9.1x 7.1x
------------------------------------------- ------------- ----------------
Other Invested Portfolio highlights
Invested Portfolio analysis(12) EURm EURm % %
----- ------- ---
Private Equity 830.7 69%
================================ ===== ======= === ====
* AMI 25.5 2%
================================ ===== ======= === ====
* AEVI 6.3 0%
================================ ===== ======= === ====
* AEVII 30.6 2%
================================ ===== ======= === ====
* AVIII 169.4 14%
================================ ===== ======= === ====
* AIX 498.3 42%
================================ ===== ======= === ====
* ADF 31.2 3%
================================ ===== ======= === ====
* AX 69.4 6%
================================ ===== ======= === ====
Derived Investments 368.9 31%
================================ ===== ======= === ====
* Derived Debt 332.8 27%
================================ ===== ======= === ====
* Derived Equity 46.1 4%
================================ ===== ======= === ====
Total 1,199.6 100%
-------------------------------- ----- ------- --- ----
Footnotes
1. "Total NAV Return" means the movement in the Adjusted NAV
per share over the quarter plus any dividends paid. "Total
Return" reflects the sub-portfolio performance on a stand-alone
basis. It excludes items at the overall AGA level such as
cash, management fees, and costs
2. Valuation uplifts on exits are calculated based on the total
actual or estimated sales proceeds and income as appropriate
since the last Unaffected Valuation. Unaffected Valuation
is determined as the fair value in the last quarter before
exit, when valuation is not affected by the exit process
(i.e. because an exit was signed, or an exit was sufficiently
close to being signed that the Apax Funds incorporated the
expected exit multiple into the quarter end valuation).
Average uplift of full exits and significant partial exits
in the current quarter calculated based on the expected
sales proceeds and/ or the fair value remaining. Weighted
average uplift on two full exits, one significant partial
exit and one public listing (InnovAge) were 91.2%, whilst
excluding InnovAge's IPO weighted average uplift was 50.5%
3. NAV was EUR1,299.5m whilst Adjusted NAV was EUR1,296.6m
reflecting the estimated performance fee reserve of EUR2.9m
at period end. Private Equity NAV and Adjusted NAV were
the same at EUR830.7m. Derived Investments NAV was EUR368.9m
whilst it's Adjusted NAV was EUR366.0m reflecting the adjustment
for the performance fee reserve of EUR2.9m.
4. Private Equity Aggregate Gross IRR and Gross MOIC of 15.3%
and 1.7x calculated based on the expected aggregate cash
flows across all funds for the 2 full exits (Boats Group
and Signavio) and 1 significant partial exit (Psagot). Including
InnovAge (all primary) Gross IRR and Gross MOIS were 134.5%
and 2.5x respectively. Gross IRR represents concurrent Gross
IRR
5. Invested cost remains subject to closing on investments
signed which have yet to close (Lutech, Herjavec Group,
Rodenstock)
6. Gross Asset Value weighted average of the respective metric
across the portfolio. LTM Revenue growth and LTM EBITDA
growth rates exclude companies where EBITDA is not meaningful
such as financial services or high growth business with
fluctuations in EBITDA. TietoEVRY is also excluded due to
the unavailability of reported data. Net debt/EBITDA multiple
and EV/EBITDA valuation multiple excluded companies where
EBITDA is not meaningful such as financial services or companies
with negative EBITDA, or high growth business valued on
a revenue basis. MATCHESFASHION.COM is excluded due to low
EBITDA from opex investments and short-term fluctuations
in EBITDA. Cole Haan has been excluded at March 2021 as
it has negative EBITDA
7. Total invested of EUR54.7m includes EUR1.2m related to a
delayed draw on existing position Evercommerce during the
period
8. FX on cash includes the revaluation of cash balances and
net losses arising from the differences in exchange rates
between transaction dates and settlement dates, and unrealised
net losses arising from the translation into euro of assets
and liabilities (other than investments) which are not denominated
in euro
9. Gross Asset Value weighted average of the respective metric
across the Derived Debt portfolio
10. Gross Asset Value weighted average of the current full year
income (annual coupon/clean price as at the respective date)
for each debt position in the Derived Debt portfolio as
at the respective date
11. Gross Asset Value weighted average of the respective metric
across the Derived Equity portfolio. (Answers, FullBeauty
and Cengage were excluded from both LTM earnings growth
and P/E ratio)
12. Invested Portfolio excludes cash and cash equivalents, revolving
credit facility drawn and net current assets, including
these the NAV was EUR1,299.5m and Adjusted NAV was EUR1,296.6m
reflecting adjustment of EUR2.9m for the estimated performance
fee reserve accrued
Notes
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.
About Apax Global Alpha Limited
AGA is a Guernsey registered closed-ended collective investment
scheme incorporated as a non-cellular company that listed on the
London Stock Exchange on 15 June 2015. It is regulated by the
Guernsey Financial Services Commission.
AGA's objective is to provide shareholders with capital
appreciation from its investment portfolio and regular dividends.
The Company is targeting an annualised Total Return, across
economic cycles, of 12-15% (net of fees and expenses) including a
dividend yield of 5% of Net Asset Value.
The investment policy of the Company is to make Private Equity
investments in Apax Funds, and Derived Investments which are
investments in equities and debt derived from the insights gained
via Apax Partners' Private Equity activities.
Further information regarding the Company and its publications
are available on the Company's website at
www.apaxglobalalpha.com.
About Apax Partners LLP
Apax Partners LLP ("Apax") is a leading global private equity
advisory firm. For nearly 50 years, Apax has worked to inspire
growth and ideas that transform businesses. The firm has raised and
advised funds with aggregate commitments of more than $60 billion.
The Apax Funds invest in companies across four global sectors of
Tech, Services, Healthcare, and Internet/Consumer. These funds
provide long-term equity financing to build and strengthen
world-class companies. For further information about Apax, please
visit www.apax.com.
Apax Partners is authorised and regulated by the Financial
Conduct Authority in the UK.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
QRFDZLFBFELXBBQ
(END) Dow Jones Newswires
May 05, 2021 02:00 ET (06:00 GMT)
Apax Global Alpha (LSE:APAX)
Historical Stock Chart
From Mar 2024 to Apr 2024
Apax Global Alpha (LSE:APAX)
Historical Stock Chart
From Apr 2023 to Apr 2024
