TIDMAPAX
RNS Number : 0930J
Apax Global Alpha Limited
19 August 2021
(LSE: APAX)
Apax Global Alpha Limited
Interim results for the period ended 30 June 2021
Key highlights
-- Strong performance across the portfolio in the first six months
of 2021: AGA's Total NAV Return(1) was 17.4% (14.9% constant
currency).
-- Total Adjusted NAV increased to c. EUR 1.4bn with Adjusted NAV
per share increasing from EUR2.45 (GBP2.19) to EUR2.81 (GBP2.41)
in the six months to 30 June 2021.
-- Focus on four target sectors and a "good-to-great" strategy
of business improvement in Private Equity driving strong returns
in the portfolio.
-- The Apax Funds were able to identify attractive opportunities
to invest, with AGA deploying EUR85m 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).
-- Record distributions of EUR131.1m 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.
-- 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.
-- Liquidity position is healthy with available cash after net
liabilities of EUR29m, and undrawn evergreen revolving credit
facility of EUR140m. Derived Investments of EUR439m(3) provide
a further source of funding for AGA.
-- Interim dividend of 5.97 pence per share declared, in line with
the stated policy to distribute 5% of NAV p.a.
Tim Breedon CBE, Chairman of Apax Global Alpha, said:
"The focus on global opportunities and sectors that continue to
show strong structural growth has delivered good results in the
first half of the year. AGA's portfolio is now mature with the
Private Equity portfolio diversified across fund vintages and
generating substantial cash distributions. As the Covid-19 vaccine
rollout continues and global economies further rebound, AGA is well
positioned to continue to provide long-term value and attractive
income for shareholders."
Commenting on the results, Ralf Gruss, COO of Apax Partners,
said:
"AGA's strong NAV performance in the first six months reflects
the quality of the portfolio. There is good momentum as seen
through several successful realisations with good uplifts, and
there was a good pace of deployment, with new investments in both
Private Equity and Derived Debt. There is a strong pipeline of new
investments, and AGA is well positioned for emerging
opportunities."
Financial highlights
-- Significant growth in Adjusted NAV(3) to just under EUR1.4
billion, up from EUR1.2 billion as at 31 December 2020, despite
dividend payment of 5.28 pence per share during the first
quarter.
-- Portfolio weighted towards Private Equity (68%), vs. Derived
Debt (29%) and Derived Equity (3%).
-- 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 EUR419m.
H1 2021 (EUR) H1 2021 (GBP)
Adjusted NAV (3) EUR 1,380m GBP 1,183m
-------------- --------------
Adjusted NAV (3) per EUR 2.81 GBP 2.41
share
-------------- --------------
NAV (3) per share EUR 2.82 GBP 2.42
-------------- --------------
Exposure H1 2021 H1 2021
constant currency
Total NAV Return(1) 17.4% 14.9%
--------- -------- -------------------
Total Return(1) -
Private Equity 66% 24.5% 21.9%
--------- -------- -------------------
Total Return(1) -
Derived Debt 29% 7.3% 4.5%
--------- -------- -------------------
Total Return(1) -
Derived Equity 3% 28.6% 25.0%
--------- -------- -------------------
Cash & Others 2%
--------- -------- -------------------
Private Equity portfolio highlights
-- The Private Equity portfolio performed strongly in the first
six months of 2021: Total Return(1) of 24.5% (21.9% 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 H1 2021, excluding the InnovAge and Global-e IPOs
(primary only), were 52.4% and 3.9x respectively. Exits were
achieved at an average uplift(2) of 25.7%, reflecting the quality
of the portfolio.
-- On a look-through basis, AGA invested c.EUR85m(5) in eleven
new investments that closed during the period.
-- Continued strong earnings growth and operating performance
from the portfolio companies: LTM Revenue(6) and EBITDA growth(6)
of 22.3% and 42.7% respectively across the Private Equity portfolio.
Derived Investments portfolio highlights
-- Good performance across the portfolio with Derived Investments
achieving a Total Return(1) 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
Return(1) of 7.3% (4.5% constant currency).
-- 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 - EUR161.3m deployed across 13 new debt positions
in H1 2021.
-- 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.
-- 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.
-- Derived Equity delivered Total Return(1) of 28.6% (25.0% constant
currency) in the first six months of 2021.
For further information regarding the announcement of AGA's 2021
interim results, including the Company's interim report, 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 H1 2021
(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 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
30.6.21 (3) 916.6 434.7 78.4 - - (49.4) 1,380.3
--------------------------- -------- ------------- -------- --------- --------- ------- --------
Private Equity - operational metrics
Private Equity - operational metrics 30 June 2021 31 December 2020
-------------
Portfolio year-over-year LTM revenue growth(6) 22.3% 6.6%
================================================ ============== ================
Portfolio year-over-year LTM EBITDA growth(6) 42.7% 20.8%
================================================ ============== ================
Enterprise Value / EBITDA valuation multiple(6) 18.0x 16.9x
================================================ ============== ================
Net debt / EBITDA multiple (6) 3.7x 3.9x
------------------------------------------------ -------------- ----------------
Derived Investments - operational metrics
Derived Investments - operational metrics 30 June 2021 31 December 2020
------------
Debt year-over-year LTM EBITDA growth(8) 37.3% 26.2%
=========================================== ============ ================
Debt average income yield to maturity(8) 6.8% 8.1%
=========================================== ============ ================
Debt average years to maturity 5.9 5.7
=========================================== ============ ================
Debt average income yield(9) 6.4% 7.3%
------------------------------------------- ------------ ----------------
Other Invested Portfolio highlights
Invested Portfolio analysis(10) EURm EURm % %
----- ------- ---
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%
-------------------------------- ----- ------- --- ----
Footnotes
1. "Total NAV Return" means the movement in the Adjusted NAV
per share over the period 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 period calculated based on the expected sales
proceeds and/ or the fair value remaining. For investments
where there were subsequent partial realisations since December
2020, uplift calculated by taking proceeds received in H1
2021 plus remaining fair value at 30 June 2021 compared
to fair value at 31 December 2020
3. NAV was EUR1,384.8m whilst Adjusted NAV was EUR1,380.3m
reflecting the estimated performance fee reserve of EUR4.5m
at period end. Private Equity NAV and Adjusted NAV were
the same at EUR916.6m. Derived Investments NAV was EUR439.2m
whilst it's Adjusted NAV was EUR434.7m reflecting the adjustment
for the performance fee reserve of EUR4.5m.
4. Private Equity Aggregate Gross IRR and Gross MOIC of 52.4%
and 3.9x calculated based on the expected aggregate cash
flows across all funds for the 12 full or significant partial
exits or IPOs
5. Invested cost remains subject to closing on investments
signed which have yet to close
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 June 2021 as it
has negative EBITDA
7. 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
8. Gross Asset Value weighted average of the respective metric
across the Derived Debt portfolio
9. 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
10. Invested Portfolio excludes cash and cash equivalents, revolving
credit facility drawn and net current assets, including
these the NAV was EUR1,384.8m and Adjusted NAV was EUR1,380.3m
reflecting adjustment of EUR4.5m 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
MSCUWRWRARUWAAR
(END) Dow Jones Newswires
August 19, 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
