Apax Global Alpha records strong NAV growth for 2021

Apax Global Alpha reported a total net asset value return of 28.7% in its final results on Wednesday, or 22.8% at constant currency, with continued good momentum across its portfolio.

The FTSE 250 company said its adjusted net asset value increased to €1.5bn (£1.25bn) at year-end on 31 December, from €1.2bn at the end of 2020, with its adjusted net asset value per share increasing to €3.02, or 254p, from €2.45, or 219p.

Its board said operating improvements, earnings growth, and a supportive valuation environment drove performance in the portfolio.

Reflecting increased investment activity in private equity, Apax said it received distributions of €275m from private equity exits during 2021, achieved at an average uplift of 50.2%.

That was balanced against €200m of calls for new investments.

Capital not invested in private equity was deployed into derived debt, with returns in debt driving “steady performance” in the derived investments portfolio, which achieved a 15.8% total return, or 9.3% at constant currency.

Apax said it was in a “healthy” liquidity position, with €108m of available cash at year-end on 31 December, and derived Investments of €336m providing a further source of capital flexibility.

The board declared a dividend of 12.33p per share for the full 2021 year, in line with its stated dividend policy of distributing 5% of net asset value per annum.

“Despite the emergence of new Covid-19 variants throughout the year, we saw strong economic recovery in 2021 and we expect this to continue, albeit with some inflationary pressures,” said chairman Tim Breedon.

“In this environment, AGA's portfolio remained robust with strong NAV growth.

“In particular, the private equity portfolio was able to capitalise on the high valuation environment to exit companies that had completed their transformation journeys or re-rated to very high levels, particularly in technology.”

Breedon said looking ahead, Apax Global Alpha’s portfolio was “well-positioned” to continue delivering attractive value and income to investors.

Ralf Gruss, chief operating officer of Apax, added that AGA recorded “another strong year” in delivering a total net asset value return above 28%.

“The portfolio is benefitting from a sector-led strategy and a focus on multiple levers of value creation and business transformation in private equity,” Gruss said.

“Operating performance in the portfolio remains strong and there continues to be real momentum.”

At 0935 GMT, shares in Apax Global Alpha were up 0.63% at 184.56p.