 Funds Advised by Apax acquire PIB Group -
On 25 January 2021, the Apax X Fund ("Apax X"), in which AGA is a limited partner, announced that it had entered into a definitive agreement to acquire the PIB Group ("PIB"), a leading independent specialist insurance intermediary. The transaction is expected to close in the first half of the year.
On a look through basis, AGA is expected to invest approximately €20m in the company.
Note that these figures relate to AGA's look through position of Apax X's overall investment in PIB and are stated before taking into account any closing adjustments and are translated into Euro based on today's exchange rates where applicable.1
Launched in 2015, PIB is a highly diversified insurance distribution consolidator focusing on specialist commercial lines and non-standard personal lines products with deep expertise across both direct and B2B distribution through its broking, underwriting and network divisions. PIB Group income has risen from nil to approximately £175m on a pro-forma basis in 2020 in five years. The company employs over 2000 employees in the UK, Channel Islands, Ireland, Germany, Poland and India.
The acquisition by Apax X will help PIB continue its impressive growth trajectory, both organically and through accelerating strategic M&A to continue its domestic and international expansion. The Apax Funds have significant experience investing in the insurance sector and helping companies consolidate large, fragmented markets, including Assured Partners, Genex and Hub International, which were successfully exited in 2019, 2018 and 2013 respectively.
AGA, whose shares are listed on the London Stock Exchange, provides investors with access to a diversified portfolio of private equity funds advised by Apax Partners as well as a focused portfolio of debt and equity investments ("Derived Investments"). In July 2019, AGA made a commitment of c.$450m2 to Apax X. |
Funds Advised by Apax Partners sell Boats Group -
The Apax IX Fund ("Apax IX"), in which AGA is a limited partner, has announced that it has agreed to sell its stake in Boats Group, a leading online marketplace and provider of software solutions for the recreational marine industry, to Funds advised by Permira. Apax IX has also agreed to sell a minority stake in ThoughtWorks, a global software consultancy, to a group of investors. Both transactions are expected to close by the end of Q1 2021, subject to customary closing conditions.
The full exit from Apax IX's investment in Boats Group is expected to deliver a total Gross MOIC of approximately 4.2x and a Gross IRR of approximately 41%.
Both the Boats Group and ThoughtWorks transactions were agreed at uplifts to their last Unaffected Valuations1, and together they represent an average uplift of c.30% to last Unaffected Valuations and an uplift of c.€29m (c.€0.06 per share) in the Adjusted Net Asset Value ("Adjusted NAV") of AGA at 30 September 20202.
Note that these figures relate to AGA's look through position of Apax IX's overall investments in Boats Group and ThoughtWorks and are stated before taking into account any closing adjustments, fees, costs, and carried interest, and are translated based on today's exchange rates where applicable3.
Funds Advised by Apax invest in Azentio Software -
On 28th December 2020, the Apax X Fund ("Apax X"), in which AGA is a limited partner, announced that it had entered into a definitive agreement to acquire the Software Products business from 3i Infotech, a global information technology company. The transaction is expected to close in early 2021, subject to shareholder and regulatory approvals.
On a look through basis, AGA is expected to invest approximately €5.4m in the newly formed company, which will be named Azentio Software.
Note that these figures relate to AGA's look through position of Apax X's overall investment in Azentio Software and are stated before taking into account any closing adjustments and are translated into Euro based on today's exchange rates where applicable.1
Since its incorporation in 1993, 3i Infotech has been providing a range of IT services and software products to 1,200+ customers across multiple industry verticals in over 50 countries. The company operates through two business segments: Services and Software Products. The Software Products business comprises a comprehensive set of core software products for customers in banking, financial services and insurance verticals ("BFSI") and includes key products such as Kastle™ (universal banking platform), AMLOCK™ (compliance software suite), Premia™ Astra (core insurance software), Orion™ (enterprise resource planning software) and MFund™ Plus (asset management platform).
Having closely followed the company's progress, Apax X identified an opportunity to carve out the software business from 3i Infotech to create a leading BFSI software provider in the region. Following the transaction, Apax X will support the newly formed Azentio Software with increased investments in R&D and sales and marketing. Azentio Software will focus on modernising its current product portfolio, launching new products and providing best in class service levels to all customers. The Apax Funds will also use Azentio as a platform to do M&A across the BFSI software space in the region. |
Strong quarterly results again, NAV 208p.
Standout: Two Private Equity exits signed (idealista, Neuraxpharm) and two IPO's (Duck Creek, Max Stock) at an average uplift of 63% to June 2020 valuations. |
Investee company goes public, 100% uplift on book: |
Another disposal at a big premium: |
These H1 results look pretty sound given the events during the period:
20% discount to NAV of 196p looks excessive. (And Duck uplift not included. They're also expecting more exits in H2.)
(IC had an article last week about PE companies. There's no consistency in the distribution of premiums/discounts.) |
Seems to be a seller out there at the mo. 70,000 at 155.5p today, following sells at 155p yday in blocks of 203,900; 99,000; 2 x 50,000; etc. |
Indeed Jonwig, a great day to be a duck!!
hxxps://www.barrons.com/articles/duck-creek-just-priced-its-ipo-above-its-range-what-we-know-51597419690
Note, the APAX 30th June NAV to be announced on 25th August won't have this gain included. |
A nice little earner here: |
gre - thanks. Saw it but haven't read it yet ... will do. |
Excellent presentation by the company in their online "Investor Update" at lunchtime today. It gave a very good insight into the way the company operates and how it is coping with the Covid 19 crisis.
Slides from the presentation have now uploaded onto their website:
www.apaxglobalalpha.com/media/2157/aga-2020-combined.pdf |
Virus impact, realistic, could be worse: |
Annual results;
NAV of 188p after a good year. Price has over-corrected. |
out again! quite fun this share |
back in today - made a few pence but needed have bothered. |
let all my shares go this am and yest. will chase other investment trusts with wider discounts but same / better underlying nav performance. been a nice trade |
hope so!
2 of the best performing trusts underlying editda growth wise (their holdings) and nav wise - ICG and Oakley are on huge discounts - oakley especially looks like a great buy here given the director buys. |
These have been well bid for following the recent Q3 results but there could still be more to come when compared to the other equally decent private equity trust, BMO (ticker BPET). APAX disc. 8%, BMO disc. 4%. APAX div 5.4%, BMO div 4%. |
Q3 results again look strong:
Presentation on website gives NAV as €2.15 (191p... stronger GBP?) |
Hi Jonwig, i agree the increase in NAV here looks appealing and reading the report some of their portfolio appears to have significant traction. The discount although widened by historical standards for APAX isn't actually that large compared to the sector NBPE, SLPE. The funds which don't pay a dividend seem to have less of a discount HVPE for example. |
Half-year report:
Nav at 30/06 was €1.88 which would now be 194p. A 20% discount looks far too high even in these markets. Div would annualise to ~9.7p if 5% of NAV. |
Apax Funds quarterly valuation:
Look at the uplifts over just the last three months: between 5 and 13%! |
There's an Investor Day today, with a webcast and presentation pdf here:
Ithink the presentation has been up for a while. |
Yield is over 5.5% at these prices. |
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