Today's sales add 3.6% to September's adjusted nav. Ignoring forex and any other movements, that means nav is now 176p.
Annual results on 5 March. |
Yes, a pleasant surprise! But NAV was 170p at 30/06, so still at a discount (like most PE sector). |
Promotion to the 250 explains some of the recent rise, see rns above. Thank you shire |
For my info: |
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See you there. |
Yes, very happy this morning.
Should see a steady reversal upward now |
Yes this bit was pretty good:
LTM Total NAV Return was +11.6% (+11.9% constant currency), reflecting strong performance of the Private Equity portfolio |
Good update from APAX today. I have doubled my holding. |
The board were clever enough to recognise that the market was overbought so I'm hoping they lightened the load and bought back in in time for the latest bull run.
Results next week. |
Thanks Jon
I'm looking for a modest return on what I see as a low-risk technical situation backed up by strong financials from the company. APAX looks way oversold to me now and I hope/expect a reversal as we approach results. |
yopf - just to say that I still hold these, and am happy to. But don't expect it to blow the lights out. In current markets, its unquoted holdings might be relatively resilient, and its fixed interest portfolio maybe safer than shares.
It's also paying a decent dividend, though not covered necessarily. |
Results are 7th November 2018.
From the interims:
Commenting on the results, Tim Breedon CBE, Chairman of Apax Global Alpha, said:
“AGA produced a stronger performance in the first half of 2018. The Private Equity portfolio added value
through unrealised gains as the strength of the underlying companies is starting to be reflected in the reported performance.”
Commenting on AGA’s investment focus, Ralf Gruss, COO of Apax Partners, said:
“We are pleased to see strong operational performance of the Private Equity portfolio not only translating into valuation increases over the period, but value also crystallised through strong exits from divestments of Genex, GlobalLogic, and Azelis. Markets for Derived Investments showed higher volatility during the period which may create opportunities for investment activity going forward.” |
Starting to see some movement up. Will add when I'm sure of a confirmation of a change in direction. As I say, looking for 10-30p on APAX |
Taken a small long position on APAX with a stop loss. |
I can see 140/1.50 poss even 1.60 on a bounce, quite quickly on very low volume |
These are starting to interest me from a purely technical oversold basis. |
 Liberum;
Event
Apax Global Alpha's NAV per share at 30 June 2017 was €1.85 which represents a loss of 0.7% partly due to the Euro strengthening 8% against the US Dollar over the period. NAV total return on a constant currency basis was 4.2%.
On a constant currency basis, the portfolio contributed 5.6% to NAV total return of which Private Equity contributed 1.7%, Derived Debt 0.3% and Derived Equity 3.6%. LTM revenue and EBITDA growth in the private equity portfolio is 8.9% and 12.2% on average.
The portfolio was 84% invested at 30 June 2017. The reduction was mainly due to the sale of four derived investments following significant share price appreciation. Unfunded commitments to Apax funds were £392m at June 2017 and the company has cash and undrawn facilities of £289m.
A semi annual dividend of 4.24p has been declared for the period to June 2017 (ex-date 24 August).
Liberum view
NAV performance in H1 on a constant currency basis of 4.2% represents an improvement on the relatively poor return of 3.9% (constant currency) in 2016 as a whole. Derived equity investments were the key driver of returns following significant realised and unrealised gains in the period. The returns from the private equity portfolio remain low by comparison (3.3% in H1 2017 and 4.9% in FY 2016). Two positions out of 42 portfolio companies (Quality Distribution and Full Beauty) were the biggest detractors to the private equity portfolio performance in the half-year.
The shares currently trade on a 12.1% discount to NAV and may receive support in the near-term following the expected inclusion in the FTSE Index Series from September. The free float is now above 50% following the second lock-up release in June. |
FY results:
Improved H2 - "Total NAV Return during the year of 6.6%, representing largely flat performance during the first half but strong performance during the second half"
NAV at 31/12 was 163p so we can expect a dividend of maybe 8.15p for 2017. |
gopher - it was, as I posted, getting a bit over-priced and I sold half after the last announcement.
As for "US recession" I think we'll get a Trump bubble first. But well to be wary. |
I have been looking at this and with the slip in the price this month the discount has widened out. The dividend is clearly not backed by treasury bills but baring a major US recession is probably OK. |
Q3 results. NAV of 157p (flattered by sterling depreciation) is a bit tight.
And YTM of debt instruments over 12% suggests these holdings (most or all unquoted) are of a 'junk' nature. (Running yield over 9%.)
Annual dividend around 7.5p. Covered? |
Winter floods;? Apax Global Alpha was launched in June last year, when it raised £218.2m (equivalent to 300m) through anoversubscribed IPO. Immediately prior to admission the fund acquired PCV Lux SCA and its subsidiaries, whichwas formed in 2008 as an investment vehicle for certain partners and employees of Apax Partners LLP. The IPOprice of 119.2p was set at a 13% discount to the NAV of the initial portfolio and, at admission, Apax GlobalAlpha therefore had a market capitalisation of £585m. Previous investors in PCV Lux SCA are subject to various'lock?up' arrangements and the fund currently has a free float of 45%. In total 30% of shares are subject to 5year arrangements and a further 25% are subject to 10 year arrangements. The latest annual process saw 37mshares come out of lock?up, but only 2.5m shares tendered and placed.? The portfolio includes investments in Apax Private Equity Funds as well as 'Derived' Investments. Thesecomprise both debt and listed equities and represent investment ideas that are generated by the team's day today investment activities and research, but that are not suitable for Apax's buyout funds. The long?term targetis 50% 'private equity' / 50% 'derived' investments.? The fund is targeting an annualised total shareholder return, across economic cycles, of 1215% (net of feesand expenses) including a dividend yield (paid semi?annually) equivalent to 5% p.a. of NAV, once fully invested.There is no double charging of management fees and no fees on cash.Performance, Portfolio & Outlook? In Euro terms the fund's NAV fell from 1.88 to 1.82 (?3.2%) in H1'16, although it rose in Sterling terms from138p to 152p (+10.1%). A second semi?annual dividend of 3.95p was declared, equivalent to 2.5% of NAV, whilethe first semi?annual dividend of 3.69p was paid in April and on a total return basis, the NAV return was ?0.6%in the period (+12.8% in Sterling terms). Since IPO the NAV total return is +5% in Euro terms.? Underlying portfolio performance was positive and on a constant currency basis the NAV would have been up1.2%. However, approximately 60% of the fund's investments are US Dollar denominated and the appreciationof the Euro against the US Dollar was therefore unhelpful. The Private Equity segment of the portfolio was up0.9% in the period as positive operational performance was offset by lower valuation multiples. DerivedInvestments were down 0.4% reflecting write?downs for debt investments.? At the period end the fund was 94% invested and had 48.5m of cash. The portfolio was split broadly evenlyacross Private Equity (52%) and Derived Investments (48%), while exposure was diversified across Apax's focusindustries of Tech & Telecom (37%), Services (28%), Consumer (19%) and Healthcare (5%).? The Private Equity portfolio companies continue to perform well, generating last twelve month revenuegrowth and EBITDA growth of 7.4% and 9.8% respectively. It is relatively young, with 57% of its valuerepresented by investments made during 2015 or 2016, reflecting activity by Apax VIII. There were four newprivate equity investments closed during the period, while AGA has also committed $350m to Apax IX, a globalbuy?out fund. There were a number of full and partial realisations and Apax funds returned 38.7m during thesix months to 30 June.? Within the derived portfolio, investments were made in the listed equity of five companies, including Sophos.A debt investment was also made in Ellucian, a provider of higher education technology. There were sixdivestments, all of which realised positive IRRs.? RG noted that only 2% of the portfolio is directly exposed to UK companies and as such he feels that the fundis well positioned to withstand any volatility associated with 'Brexit'.Winterflood ViewApax Partners is a long?established and well?regarded private equity manager and Apax Global Alpha isdifferentiated from its listed private equity peers by its hybrid portfolio, which provides exposure to bothprivate and publicly traded investments. This helps the fund avoid the cash drag often associated with listedprivate equity funds. In addition its ability to take advantage of opportunities that are uncovered as part of theinvestment team's work on particular sectors is attractive, in our opinion. The fund's portfolio is less maturethan the majority of its peers, although its prospective dividend yield of around 6% will appeal to certaininvestors and its ability to sustain this is helped by income generated from its debt investments. That so fewlocked?up shareholders, many of whom will have intimate knowledge of the portfolio's prospects, sold sharesat the first opportunity is also encouraging. Furthermore following the next release of shares from lock?up inJune next year we would expect Apax Global Alpha to become eligible for inclusion in the FTSE All Share Indexand this should provide a boost to demand. Taking all of this into account, we think that the current discount of18% looks like an attractive entry point. |
Liberum doesn't mention that APAX isn't purely PE:
The portfolio has "Well balanced invested portfolio: Private Equity (52%) and Derived Investments (48%)" (at December 2015).
Derived instruments are quoted equity and quoted or unquoted debt. This probably goes some way to explaining the narrow discount compared with some in the PE sector. |
Liberum;
Apax Global Alpha (AGA) valued its Apax Funds in 30 June 2016 and the results are positive compared to prior valuations adjusting for calls and distributions (like-for-like).
AGA's largest commitments is in Apax VIII, a global buyout fund raised in 2012 and as at 31 March 2015 the majority of the top ten investments in AGA's portfolio where held under that fund.
Liberum view
We believe the 30 June 2016 valuation of the Apax Funds is reflecting AGA's portfolio that includes new investments (12 - 18 months) in value creation phase. AGA will be reporting the results of the financial half year ended 30th June 2016 on 17 August 2016, and given the numbers above we expect a small uplift in NAV. AGA is trading at 18.7% discount, much narrower than its peer group average of 31.4% (excl. 3i), and its current yield is 3%. |
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