Apax Global Alpha Limited Reports Resilient Performance in 2023 Interim Results

Apax Global Alpha Limited has announced its interim results for the period ending June 30, 2023. The company achieved a Total NAV Return of 2.4% (3.6% constant currency) during the six-month period. The main drivers of this return were value creation in the Private Equity portfolio and strong returns from the Debt portfolio. In Private Equity, portfolio companies achieved average LTM EBITDA growth of 14.1% despite some slowdown in earnings growth in Q2 2023. AGA received €35m in distributions from the Apax Funds, bringing the total distributions received in the last 5 years to €998m. AGA deployed €11.4m across three new investments in the first half of 2023, including the first standalone investment in the Apax Global Impact Fund. The Debt portfolio achieved a Total Return of 5.3% in the first six months of 2023, with a yield to maturity of 13.3% and an income yield of 11.4% at the end of June 2023. A dividend of 5.70p per share has been declared for the half-year 2023, in line with AGA's dividend policy of distributing 5% of NAV per annum.

AGA's invested portfolio was split 71% in Private Equity and 28% in Debt investments, with the remaining 1% invested across three Equity positions. The company's unfunded commitments to the Apax Funds reduced by €20m to €985m at the end of June 2023. AGA entered into a new multi-currency revolving credit facility of €250m with SMBC Bank International plc and JPMorgan Chase, N.A., London Branch, replacing the facility with Credit Suisse AG, London Branch.

AGA's portfolio consists of hidden gems, mostly private companies that shareholders can't buy elsewhere. At the end of June 2023, the invested portfolio consisted of 39% in Tech & Digital, 28% in Services, 17% in Healthcare, and 16% in Internet/Consumer. In Private Equity, earnings growth was a key driver of performance, with average LTM EBITDA growth of 14.1% across portfolio companies. The valuation multiples reduced to 16.3x compared to 17.2x at the end of December 2022. The leverage across the Apax Funds' portfolio reduced slightly to 4.4x at the end of June 2023. AGA's Debt portfolio delivered a Total Return of 5.3% in the first half of 2023, outperforming the S&P/LSTA leveraged loan index over the past five years. The Derived Debt portfolio and Derived Equity portfolio also contributed to the company's overall performance.