2022 Interim Results Highlights

·     

The portfolio proved resilient during the six months to 30 June 2022 with aTotal NAV Return¹ of (3.5)% ((8.9)% constant currency).

·     

Private Equity Total Return¹ of (5.7%) reflected strong operating performance in the underlying portfolio companies, offset by weaker markets and lower comparable company multiplesused to value the portfolio.

·     

The focus on business performance improvement and value-creation is integral to the Apax Funds' investment strategy and drove positive operating performance across the portfolio. As a result, despite the deteriorating macroeconomic environment, the underlying portfolio companies have continued to post 19.1% LTM revenue growth² and 15.8% LTM EBITDA growth² to 30 June 2022.

·     

New deal activity has, unsurprisingly, been lower during the first six months when compared to last year. The Apax Funds have, however, continued to identify attractive investment opportunities and remained active buyers, completing five new investments in which, on a look-through basis, AGA deployed €51m in the first half of 2022.

·     

AGA received distributions of€86.0m from Private Equity exits, together with dividends and other distributions of €30.9m. Exits were achieved at an average uplift of 18.5%³.

·     

AGA had a healthy liquidity position with net cash of €150.1m and a €250m undrawn revolving credit facility as at 30 June 2022. Derived Investments of €364.9m provide a further source of capital flexibility.

·     

During the period, AGA committed to the Apax Global Impact fund ($60m), the Apax Mid-Market Opportunities II fund ($40m), and the new global buyout fund Apax XI ($700m, split 70:30 between the fund's US$ and Euro tranches).

·     

Dividend of6.00p per share declared for the half year 2022, in line with AGA's stated dividend policy of distributing 5% of NAV per annum.

·     

Total Adjusted NAV⁴ decreased to c.€1.4bn (FY21: €1.5bn) with Adjusted NAV per share decreasing to €2.83 (£2.44) from €3.02 (£2.54) in the six months to 30 June 2022.

·     

71% of the Invested Portfolio is in Private Equity, and the portfolio remains well diversified across four key sectors and vintages.

·     

Weak public equity markets affected the valuation of the Apax Funds' publicly listed holdings. These positions reflect residual stakes in previously IPO'd portfolio companies. These portfolio companies have already returned 2.8x of the original investment in cash to the Funds, with a further 2.1x remaining (based on 30 June 2022 share prices).

·     

AGA was 89% invested as at 30 June 2022 and had outstanding commitments to the Apax Funds (together with recallable distributions) of €1.2bn. It is expected that much of AGA's existing cash will be deployed in the Private Equity portfolio during the second half of the year, primarily as capital is being called to fund investments previously made by the Apax Funds.

H1 2022

H1 2022

FY 2021

FY 2021

Adjusted NAV⁴

EUR 1,392m

GBP 1,199m

EUR 1,482m

GBP 1,247m

Adjusted NAV⁴per share

EUR 2.83

GBP 2.44

EUR 3.02

GBP 2.55

NAV⁴per share

EUR 2.83

GBP 2.44

EUR 3.03

GBP 2.54

Exposure

H1 2022

H1 2022
constant currency

Total NAV Return¹

(3.5)%

(8.9)%

Total Return¹ - Private Equity

63%

(5.7)%

(11.4)%

Total Return¹ - Derived Debt

24%

3.4%

(3.6)%

Total Return¹ - Derived Equity

2%

(11.5)%

(15.6)%

Cash & Others

11%

·     

The Private Equity portfolio delivered a Total Return of(5.7)% ((11.4)% constant currency) in the period.

·     

Two full or significant partial exits were completed during the period at an average upliftof 18.5% compared to Unaffected Valuations³. Aggregate Gross IRR⁵and Gross MOIC⁵in H1 2022 were 38.5% and 3.3x respectively.

·     

On a look-through basis, AGA invested c.€50.6m in five new investments, primarily in Tech & Digital.

·     

LTM Revenue and EBITDA growth was 19.1%² and 15.8%² respectively across the Private Equity portfolio.

·     

Steady performance across the portfolio with Derived Investments delivering a Total Return of 2.2% ((4.6)% constant currency) in the period to 30 June 2022, driven primarily by the Derived Debt portfolio.

·     

97% of the Derived Debt Investments are floating rate.The average yield to maturity of the portfolio increased to 8.9% at 30 June 2022 (FY 21: 6.8%).

·     

 €37.7m was deployed in Derived Debt in the first half of 2022. There were no new investments in Derived Equity.

·     

92% of the portfolio is in debt instruments, with only 8% in equity investments.

Adjusted NAV movements (€m)

Private Equity

Derived Investments

Cash

Treasury Shares

Facility drawn

Other⁶

Total

Adjusted NAV at 31.12.21

1,012.9

327.2

108.5

-

-

33.1

1,481.7

+ Investments

36.4

37.7

(74.1)

-

-

-

-

- Distributions/ divestments

(116.9)

(6.4)

156.7

-

-

(33.4)

-

+ Interest and dividend income

-

-

9.3

-

-

0.3

9.6

+/- Gains/(losses)

(110.6)

(25.6)

-

-

-

-

(136.2)

+/- FX gains/(losses)⁷

55.4

23.6

1.0

-

-

-

80.0

+/- Costs and other movements

-

-

(5.4)

-

-

(0.1)

(5.5)

 - Dividends paid

-

-

(37.4)

-

-

-

(37.4)

+/- Performance fee reserve⁸

-

8.4

-

(8.4)

-

-

-

+/- Shares purchased

-

-

(8.4)

8.4

-

-

-

+/- Revolving credit facility

     drawn/repaid

-

-

-

-

-

-

-

Adjusted NAV at 30.06.22

877.2

364.9

150.2

-

-

(0.1)

1,392.2

Private Equity - operational metrics

30 June 2022

31 December 2021

Portfolio year-over-year LTM revenue growth²

19.1%

20.2%

Portfolio year-over-year LTM EBITDA growth²

15.8%

35.3%

Enterprise Value / EBITDA valuation multiple²

17.9x

23.2x

Net debt / EBITDA multiple²

4.8x

4.2x

Derived Investments - operational metrics

30 June 2022

31 December 2021

Debt year-over-year LTM EBITDA growth⁹

19.0%

22.2%

Debt average income yield to maturity⁹

8.9%

6.2%

Debt average years to maturity

5.6

6.1

Debt average income yield¹⁰

7.3%

5.4%

Invested Portfolio analysis¹¹

€m

€m

%

%

-      AMI

25.0

2%

-      AEVI

2.8

0%

-      AEVII

27.6

2%

-      AVIII

125.0

10%

-      AIX

393.1

32%

-      ADF

49.5

4%

-      ADF II

(2.1)

0%

-      AX

256.3

21%

Private Equity

877.2

71%

-      Derived Debt

337.5

27%

-      Derived Equity

27.4

2%

Derived Investments

364.9

29%

Total

1,242.1

100%

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

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. Net debt/EBITDA multiple and EV/EBITDA valuation multiple excluded companies where EBITDA is not meaningful such as financial services or high growth business valued on a revenue basis.

3

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 partial exits and IPO's includes proceeds received and the closing fair value at 30 June 2022.

4

Adjusted NAV and NAV were the same at €1,392.2m as the performance fee reserve was €0.0m at 30 June 2022

5

Private Equity Aggregate Gross IRR and Gross MOIC calculated based on the expected aggregate cash flows in euro across all funds for the deals signed and IPO'd in the year. Gross IRR represents concurrent Gross IRR.

6

Other reflects net current assets. The movement since 31 December 2021 was related to debt investments that were sold prior to 31 December 2021 which settled during the six months to 30 June 2022.

7

FX on cash includes the revaluation of cash balances and net gain or losses arising from the differences in exchange rates between transaction dates and settlement dates, and unrealised net gains or losses arising from the translation into euro of assets and liabilities (other than investments) which are not denominated in euro

8

Movement in the performance fee reserve of €8.4m reflects the performance fee paid during the period. At 30 June 2022, there was no performance fee accrued. This does not represent the underlying Private Equity portfolio's carried interest.

9

Gross Asset Value weighted average of the respective metric across the Derived Debt portfolio. Mindbody was excluded from LTM EBIDTA growth

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

Invested Portfolio excludes cash and cash equivalents, revolving credit facility drawn and net current assets, including these the NAV and Adjusted NAV are €1,392.2m.There was no performance fee reserve at 30 June 2022.

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.