Apax Global Alpha net asset value stable at year-end

5th Mar 2024 10:01

(Sharecast News) - Apax Global Alpha reported an adjusted net asset value of €1.29bn at year-end in its 2023 results on Tuesday, down slightly from €1.30bn at the end of 2022, and translating to an adjusted net asset value per share of €2.62 or £2.27.

The FTSE 250 company said the movement in adjusted net asset value was primarily due to an increase in the net asset values of the debt and private equity portfolios, offset by dividends paid to shareholders and foreign exchange movements.

Its total net asset value return was 4.1%, or 6.1% at constant currency, with significant contribution from the debt portfolio.

Private equity performance was driven by earnings growth across the underlying portfolio companies, with an average last-12-months EBITDA growth of 18% at the end of 2023.

Throughout the year, Apax Global received €90m in distributions from the Apax funds, including from six full exits achieved at an average uplift of 20%.

Additionally, the firm deployed €95m across 10 new investments, primarily in the second half of the year.

The debt portfolio maintained a greater exposure to first-lien loans, achieving a total return of 11.8% in the year.

Despite a detailed review of the company's capital allocation policy, no changes were made, reaffirming the priority of ensuring continued cash returns to shareholders via regular dividends.

A final dividend of 5.64p per share for 2023 was determined, expected to be paid on 4 April.

In terms of board changes, Karl Sternberg joined as a non-executive director on 1 March, intending to replace Tim Breedon as chairman in the second half of the year.

At the same time, Chris Ambler retired as a director after nearly nine years in the role.

Financially, AGA was 93% invested as of 31 December, with unfunded commitments to the Apax funds reducing to €919m.

The invested portfolio was split 74% in private equity, 25% in debt investments, and 1% in derived equity positions.

Apax Global said it held €94m in cash at the end of the year.

"Over the past five years AGA has delivered an average total net asset value return of nearly 13% per annum and returned more than €300m in dividends to shareholders," said chairman Tim Breedon.

"The NAV contribution from both the debt and private equity portfolios against the more challenging economic backdrop of 2023 highlights the strength of the company's strategy.

"With investment activity in private equity ramping up in the second half of the year, there is strong momentum across the portfolio, with Apax's focus on driving performance through operating value creation being well suited in current markets."

At 0851 GMT, shares in Apax Global Alpha were up 0.26% at 154.6p.

Reporting by Josh White for Sharecast.com.