Apax Global Alpha Limited, a closed-ended investment company providing access to the Apax Private Equity Funds, has released its full year results for the year ended 31 December 2023. The company's Adjusted NAV was €1.29bn in 2023, with a Total NAV Return of 4.1% (6.1% constant currency). The Private Equity performance was driven by earnings growth across the underlying portfolio companies, with an average LTM EBITDA growth of 18.0% at 31 December 2023. AGA received €90m in distributions from the Apax Funds during the year, including from six full exits achieved at an average uplift of 20%.
In 2023, AGA deployed approximately €95m on a look-through basis across ten new investments. The Debt portfolio maintained a greater exposure to first lien loans and achieved a Total Return of 11.8% in the year (14.4% constant currency). The Board reaffirmed its priority to ensure continued cash returns to shareholders via regular dividends and has determined a final dividend of 5.64 pence per share for 2023, expected to be paid on 4 April 2024.
Tim Breedon CBE, Chairman of Apax Global Alpha, highlighted the company's performance, stating, "Over the past five years AGA has delivered an average Total NAV Return of nearly 13% p.a. and returned more than €300m in dividends to shareholders." The company was 93% invested as at 31 December 2023 and had unfunded commitments to the Apax Funds of €919m. The invested portfolio was split 74% in Private Equity and 25% in Debt Investments, with the remaining 1% invested across three Derived Equity positions.
AGA offers access to a global portfolio of mostly private companies, well diversified across the four Apax sectors with Tech & Digital (41%) making up the largest exposure, followed by Services (27%), Healthcare (15%), and Internet/Consumer (17%) at 31 December 2023. The Private Equity portfolio is balanced across Apax Fund vintages, with 40% in the investing phase, 38% in the maturity phase, and 22% in the harvesting phase. In the Private Equity portfolio, valuation multiples decreased slightly from 17.2x to 16.6x at 31 December 2023, with average leverage reduced to 4.6x net debt / EBITDA at year-end (FY22: 4.8x).
Additionally, the company 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 previous facility with Credit Suisse AG, London Branch. The new facility was undrawn as at 31 December 2023.