Apax Global Alpha (APAX) H1 2024 earnings summary

Executive summary

• NAV at 30 June 2024 was €1.024–1.24 billion, or €2.52 per share, with a total NAV return down 1.4% for H1 2024, mainly due to writedowns in Vyaire/Via and listed holdings.

• Excluding Vyaire/Via and listed holdings, NAV return would have been 4.2%, reflecting underlying portfolio strength.

• Private equity portfolio remains well-positioned, with strong earnings growth and increased investment and exit activity.

• Share buybacks and a fixed 11p per share dividend were introduced as part of a new capital allocation framework.

• Board succession and governance changes implemented, including a shift to cash-settled performance fees for improved transparency.

Financial highlights

• NAV per share at 30 June 2024 was €2.52 (£2.13), with a dividend payment of €32 million impacting NAV by seven cents per share.

• Write-down of Vyaire/Via reduced returns by -2.9%, and listed holdings by -2.7%; Vyaire/Via was fully written off in private equity and mostly in debt.

• Debt portfolio achieved a 2.1% NAV return in H1 2024; excluding Vyaire/Via, return would have been 6.5%.

• Five-year cumulative constant currency total return for the debt portfolio was 38.6%, outperforming the S&P/LSTA Leveraged Loan Index by 770 bps.

• Investment income for H1 2024 was €15.1m, down from €18.9m in H1 2023.

Outlook and guidance

• Exposure to listed holdings reduced to 7% of NAV, down from 25% at end-2021, expected to be less of a headwind.

• Private equity portfolio is expected to drive future value creation, with Apax XI investments showing promising momentum.

• Market environment is more supportive than in 2022–2023, with increased deal volumes and more realistic vendor pricing.

• Good pipeline of new investments and exits anticipated in the near and medium term.

• Higher interest rate environment expected to benefit the investment strategy, which relies less on leverage.