Apax Global Alpha (APAX) Q4 2024 earnings summary

Executive summary

• NAV at 31 December 2024 was €1.23 billion, or €2.51/£2.08 per share, down from €1.29 billion in FY23, mainly due to Private Equity portfolio decline and €69 million returned to shareholders.

• Total NAV return per share for 2024 was 0.8% in euro terms (or -3% constant currency), impacted by healthcare (notably Vyaire/Via write-off) and retail investments; core sectors (Tech, Services, Internet/Consumer) contributed positively.

• Exposure to listed post-IPO holdings reduced to 2% of NAV; no new healthcare or retail investments planned.

• Apax XI is becoming a larger part of NAV, with strong early performance and expected to be a key value driver for future NAV growth.

• €69 million was returned to investors via dividends and buybacks, with a dividend yield of 7.8%.

Financial highlights

• NAV at 31 December 2024: €1,227 million, NAV per share: €2.51/£2.08.

• Private equity investments represented 83% of the portfolio, with exposure to around 80 companies; debt portfolio was 17%.

• Debt portfolio achieved a total return of 7.5% (2.9% constant currency); excluding Via/Vyaire, return was 13.2%.

• Portfolio companies reported LTM EBITDA growth of 14.1% and revenue growth of 8.9%.

• Valuation multiples increased from 16.6x to 17.8x EV/EBITDA over the year.

Outlook and guidance

• Momentum in dealmaking expected to continue in 2025, with a strong pipeline of ready-to-exit companies.

• Apax XI investments are off to a strong start and are expected to be key value drivers for future NAV performance.

• No new healthcare or retail investments planned; focus remains on tech, services, and internet consumer sectors.

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

• Issues impacting performance in recent years are now largely resolved; portfolio positioned for value generation.