@nexusltd I do factor in dividend distributed from NAV on relative performance. The floating rate private credit was not a huge drag on performance during the good times and should now be a benefit with higher lending rates. Even with this drag there is a 40% discount on the equity. |
orinocor - they invest in various funds run by Apax Partners, rather than in individual companies. Any individual company is described as being on a "look-through" basis. Performance figures for the funds are given quarterly, at least.
However, they invested indirectly in seven new assets last year (see the RNS list) and made one disposal, Duck Creek, at a 46% uplift on carrying value.
Post #273 makes a good point, and personally I prefer my dividends to buybacks, which they aren't doing. |
Has anyone looked at the top ten investments. Does anyone follow the portfolio companies? I'm thinking of taking a position but I'll be frank, I have little idea what I am buying. Id be taking the net assets value at face value. |
@MrScruff With 26% of the portfolio invested in floating rate private credit, and 5% of NAV distributed in annual dividends, would you not expect its relative performance to lag its peers in up trending markets? |
Still very poor relative performance vs peers limiting the downside despite technicals showing "sell". I continue to add. Only a matter of time. APAX will eventually be an retirement income trust due to its dividend being taken from NAV and not share price. |
@speedsgh From
"(12 Jul 2022) - Matches confirms Nick Beighton as its new CEO,[6] Following this Matches received £60m from Apax[7] to power it's turnaround."
1. Looking through APAX PEIT's December 2022 AR, and the 2023 09 Q3 presentation, Matches is not listed in the top 30 PE investments. The investment quantum in the 30th holding is <1% of reported NAV.
2. APAX PEIT has not released an RNS regarding investment in Matches.
Unless you know any different I can only conclude that the APAX PEIT has an insignificant interest, if any, in Matches. |
Added a few more while I can in the 50s. |
While APEO is a strong buy contender, APAX has the advantage of investing directly in the underlying holdings, which removes a layer of fees.
Additionally, APAX can opt out of fundraising "commitments" if the return is not as good in today's higher rate environment.
As mentioned, the discount on the actual equity is similar because of the credit business. PE credit is in fashion and is making APAX and other PE companies lots of money. It may be a secular shift or trend going forward.
Rest assured APAX is the better buy for 2024, but as usual, the share price in the short term is unpredictable and personal investors have the opportunity to build a position while there is a institutional seller. The selling usually does not last too long in these types of trusts. I add a little every day under 155p. No stamp duty. Buy and hold through 2024, or as a small allocation to a pension, or trade it to recovery, the choice is yours. |
I am back into APAX at 150p this morning. |
@skyship APAX is unusual as it also invests 26% of NAV in debt instruments "Derived Investments" - former PE holdings it knows well. This helps fund the divi. If you hold the view that this debt should have a 0% discount applied to it, then the actual discount applied to the 74% of PE holdings is c. 44%.
Edit:
1) If you don't think that sterling's recent strength is warranted, and I don't, it's a good time to buy USD/EUR assets.
2) Looking at APAX trade volumes, and some of the recent trades, I think that there may be significant seller in this thinly traded name; it may bounce when the selling ends. |
Ah, silly me. Indeed, NAV at 222p with Euro at 1:16, so 5% = 11.1p.
Trying to assess APAX v. APEO.
APAX at 32.7% discount and 7.4% yield
APEO at 42.7% discount and 3.64% yield
Reckon I prefer APEO. |
If you take NAV to be 219p then 5% of that is about 11p, so 5.7p interim seems right to me. |
Can anyone explain the divi here? Meant to be 5% of NAV; yet the last Interim payment was just 5.7p. Should have been higher surely; or am I looking at the wrong numbers... |
I have added. Due to an institutional seller that come around once or twice a year... This is cheap on a relative basis and when you considering the credit business the discount. STRONG BUY. |
Added 155p. Seems very oversold down here given bit of recovery in many other stocks. |
Investment in Petvisor:
- their website doesn't say where they're domiciled, but their HQ appears to be in Florida, and they're US-wide. |
Not greatly enamoured with todays update. PE valuations declined by €29.8m or 3.5% of the opening figure. This despite the valuation multiple being virtually unchanged at 16.2X and EBITA growing????? Also the gain on derivatives was €3m yet the performance fee reserve was €2.6m. Not sure why realisations from derivatives went to the cash column, I would rather see a 10% return than (say) 4 - 5% on cash |
 Quarterly Results to 30 September 2023 -
Key highlights
· AGA achieved a Total NAV Return1 of (0.1%) ((1.9%) constant currency) in the three months ended 30 September 2023. Adjusted NAV2 was largely unchanged at €1.3bn (30 June 2023: €1.3bn), equivalent to a NAV per share of €2.57/£2.23.
· Performance from the Debt portfolio helped offset multiple driven declines in Private Equity in Q3 2023.
· The Private Equity portfolio remained resilient in the face of an uncertain market environment and earnings growth continued to be the main driver of NAV returns with portfolio companies achieving an average LTM EBITDA growth of 16.4%3 to the end of September.
· AGA received €35m in distributions from the Apax Funds, including from two full exits achieved at an average uplift of 11%4.
· There was continued momentum in the Private Equity portfolio with AGA deploying €28m5 across two new Private Equity investments in the quarter with a further five investments post quarter end.
· The Debt portfolio, which primarily consists of first and second lien loans, achieved a Total Return1 of 5.6% in the quarter.
Ralf Gruss, Partner at Apax and a member of the AGA investment committee, said:
"Despite a more challenging market backdrop, AGA is well positioned as seen by the resilience of the Private Equity portfolio and returns achieved by the Company's debt investments. Over the past five years AGA has delivered an average Total NAV Return of c. 12% and returned more than €300m in dividends to shareholders. In the last quarter we have seen a step-up in activity across the Private Equity portfolio and we believe that Apax's focus on operating value creation is highly relevant in current markets."
[continues] |
Hardman, including an interview: |
Bazooka Joe! Who knew that was still a thing |
Apax Funds acquire Bazooka Candy Brands -
Apax Global Alpha, the closed-ended investment company providing access to the Apax Private Equity Funds, today announced that it has invested approximately €16.6m in Bazooka Candy Brands ("Bazooka") on a look-through basis1.
On 10th October 2023, the Apax XI Fund ("Apax XI"), in which AGA is a limited partner, announced that it had acquired Bazooka, a portfolio of leading non-chocolate confectionary ("NCC") brands, from Michael D. Eisner's Tornante Company and funds affiliated with Madison Dearborn Partners ("MDP").
Bazooka produces, markets, and distributes a range of iconic confectionary brands, including Ring Pop®, Push Pop®, Baby Bottle Pop®, Juicy Drop®, and Bazooka Bubble Gum®. The Company's portfolio spans lollipops, gummies, chewy candy, and gum, packed in highly unique formats to deliver Edible Entertainment® experiences to generations of customers since 1947. Within the US, Bazooka is a top-10 manufacturer in the NCC category and holds a leading share position in 'front of store sales', a coveted, high margin segment for retailers2. Products are distributed worldwide with c.80% of sales in the US across a broad network of channels, with the remaining c.20% of sales occurring internationally in over 40 countries. Over the past several years, Bazooka's U.S. retail sales growth has significantly outpaced the overall confectionary category, and in the year-to-date period through August 2023, retail sales have grown approximately 29% year-over-year2.
Apax's Internet/Consumer sector team, working in partnership with Bazooka's management team, will look to stand the company up as an independent business and build on the success of Bazooka's global portfolio of beloved confectionery brands. In support of its growth efforts, the team will focus on distribution growth, product innovation, geographic expansion, and the strategic acquisition of brands in complementary categories... |
APAX in exclusive talks to buy WGSN from London-listed Ascential - |
Another Hardman offering (sponsored): |
Analysts praise ‘all-weather’ Apax Global Alpha’s debt exposure - |
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