Apax Global Alpha Limited (LON:APAX) annual results for the year ended 31 December 2018.
Key highlights
· Total NAV Return1 was +7.1% (+5.4% constant currency)2 reflecting strong operational performance of the Private Equity portfolio and a positive contribution from Derived Debt
· Second semi-annual dividend of 4.12 pence per share declared, equivalent to 2.5% of euro NAV at 31 December 2018. Dividend will be paid on 5 April 2019
Outstanding commitments and funding sources
· AGA was 98% invested with a net cash balance of €17.3m. The facility was undrawn at the end of the period
· Outstanding commitments to the Apax Funds (together with recallable distributions) amounted to €251.8m (27% of NAV) with funding sources of €479.3m (51% of NAV). Funding sources comprise Derived Investments of €320.6m, undrawn facility of €140.0m, net cash of €17.3m and net current assets of €1.4m
Performance highlights
· The contributions to Total NAV Return1 of +7.1% were Private Equity +9.2%, Derived Investments -2.5%, FX +1.7% and costs and other movements -1.3%
· Derived Debt contributed +0.4% and Derived Equity -2.9% to Total NAV Return1
· Total Return of Private Equity was 17.4% (15.9% constant currency). Derived Debt delivered Total Return of 4.5% (0.3% constant currency). Derived Equity had negative Total Return of -17.6% (-17.4% constant currency).
· Aggregate Gross IRR3 and Gross MOIC3 on Private Equity full exits was 50.2% and 4.3x. The 2018 full exits were achieved at a 22% uplift to the last Unaffected Valuation4.
· Gross IRR5 and Gross MOIC5 on Derived Debt exits was 11.0% and 1.2x and on Derived Equity exits was -15.8% and 0.9x
Commenting on the results, Tim Breedon CBE, Chairman of Apax Global Alpha, said:
“AGA’s results demonstrate the value accretion potential of our strong portfolio over the long-term.”
Ralf Gruss, COO of Apax Partners, said:
“AGA delivered positive returns in a year where most markets turned negative. The Private Equity portfolio had pleasing returns driven by the strong operational momentum in the portfolio companies and three lucrative exits. In Derived Investments, the quality of the Derived Debt portfolio allowed for outperformance against credit markets. Listed equity investments however disappointed and could not withstand market volatility.”
