Apax Global Alpha (APAX) Q3 2024 earnings summary

Executive summary

• Net Asset Value (NAV) at 30 September 2024 was €1.2 billion, or €2.45/£2.04 per share, with total NAV return per share up 1.7% in constant currency but -0.2% after FX headwinds.

• Private Equity portfolio showed continued momentum, with 5 new investments and 6 full exits at an average gross MOIC of 2.7x, and reduced listed holdings to 4% of NAV.

• Shareholder returns included €67 million via dividends and buybacks YTD, with buybacks creating 0.1% NAV per share accretion in Q3.

• New capital allocation framework introduced, including regular dividends, a distribution pool for buybacks, and immediate buyback capability.

• Private Equity portfolio companies posted strong LTM EBITDA growth of 16.3%.

Financial highlights

• NAV per share declined from €2.52 at 30 June 2024 to €2.45 at 30 September 2024, with a 7 pence drop after interim dividend payment.

• Debt portfolio returned -2.2% in Q3 2024, or +0.3% on a currency-adjusted basis, with income yield at 9.1% and yield to maturity at 11.1%.

• Dividends paid in Q3 2024: €32m; YTD: €64m. Share buybacks in Q3: 1.3m shares, €2.2m spent.

• 93% invested as of 30 September 2024; €838m in unfunded commitments to Apax Funds.

• Cash reduced from €107m at June-end to €83m after €52m calls and €34m distributions.

Outlook and guidance

• Portfolio positioned for further value creation, with new investments expected to drive future performance.

• Reduced exposure to post-IPO holdings expected to decrease volatility.

• Board targets annualised total return of 12-15% (net of fees and expenses) across economic cycles.

• No dedicated healthcare sector going forward; focus sharpened on Tech, Services, and Internet/Consumer.

• Management confident in operational momentum and value creation potential.