Apax Global Alpha Share Discussion Threads

[crazycoops] 12/12/2022 17:51

For me, the key number will be the NAV at 31 December, since that will dictate next year's dividend.

[skyship] 12/12/2022 11:53

APAX has enjoyed a good rally from the multiple low at 160p. IMO now looks overextended on a much lower discount than all its peers; buoyed up by the generous yield of course.

Now up against the falling 200day MA, so would expect a retrace back to the 170p level.


free stock charts from uk.advfn.com

[rcturner2] 12/12/2022 10:27

At 186p, the yield is 6.78%.

The NAV is 251p so a discount of about 25%.

[makinbuks] 10/11/2022 12:01

Also they held this for 5 years and there is always pressure in the 5 - 7 year period to sell and return cash to investors in that fund, hence the rollover deals we see regularly

[jimmywilson612] 10/11/2022 10:05

Assume they only sell when its above NAV to maintain creditability - if they were to sell below NAV then the question would be - is all other their holdings really reflective of NAV APAX are saying

[jonwig] 10/11/2022 09:36

True, the amount that Apax IX paid for Kepro was "undisclosed" at the time.

What's interesting is that PE groups consistently sell assets above carrying value, yet their shares languish at big discounts to NAV.

[makinbuks] 10/11/2022 09:15

Encouraging to see another exit above NAV though I note there is no comment on the return earned over five years. I suspect it would have been mentioned if it was positive

[makinbuks] 04/11/2022 12:15

jonwig, I consider APAX as pure PE. All PE funds hold cash against future commitments. The APAX debt portfolio, held to maturity provides a better return than cash. They will flex the allocation to the debt portfolio according to the PE commitment draw down requirements. Investing in PE opportunities at 15% plus is prioritised over the debt at 10.4% even in todays market.

[brucie5] 04/11/2022 11:07

jonwig, yes indeed. Does that count as "best of both worlds"?

[jonwig] 04/11/2022 10:19

Brucie - maybe because APAX isn't "pure" PE. The portfolio split is here:



The debt investments (at 28%) will brovide an income stream, so the dividend isn't entirely return of capital.

[brucie5] 04/11/2022 09:51

Happy to hold. OCI has much higher discount, but no dividend.

[makinbuks] 04/11/2022 09:03

Performance of the debt portfolio a real positive this quarter. Average yield to maturity 10.4% now. If PE valuations falter as some believe that is going to provide a nice cushion

[makinbuks] 04/11/2022 08:56

PE return of 3% but 1.6% in constant currency. Thank goodness they didn't hedge. Yesterdays fall in the pound will provide another short term uptick

[jonwig] 04/11/2022 07:30

Quarterly results:



These look very good (the company says "resilient") with valuationas at 30/09, nav is now 251p.

Debt instruments did well, as most are floating rate. Quoted equity investments a bit of a drag (not a surprise) but private ones were positive.

Dividend for th year could be around 12.5p.

[speedsgh] 14/9/2022 10:34

The Apax Digital Fund II invests in Xeneta -

On 13 September 2022, The Apax Digital Fund II ("ADF II"), of which AGA is a limited partner in, announced an investment in Xeneta, a leading ocean and air freight rate benchmarking and market analytics platform, as part of an $80m funding round led by ADF II.

As organisations undergo efforts to navigate instabilities in the current uncertain market, access to readily available and actionable freight rate data has emerged as a strategic priority. With this investment, Xeneta will accelerate investments in platform development and continue scaling its global commercial teams. This will support expansion into new markets as companies seek to develop resilient supply chains to counter global trade volatility. Following the investment, the Apax Digital Funds will work closely with Xeneta to help cement the company's leading position and continue to drive penetration, leveraging several value creation leavers to help fuel growth.

In 2021 AGA made a commitment of $90m to ADF II. On a look through basis, AGA is expected to invest approximately €3.5m in Xeneta. Note that these figures relate to AGA's look through position of ADF II's investment in Xeneta and are stated before taking into account any closing adjustments and are translated into Euro based on today's exchange rates where applicable.1

"While global trade tries to get back on its feet after a couple of years of uncertainty, it's clear that the overall logistics industry requires a re-think of how freight is bought and sold. This new funding will help us accelerate development of our platform and add even more datasets to enrich our expert industry analyses to further drive transparency in the market," said Xeneta CEO and Co-founder Patrik Berglund.

[jonwig] 19/8/2022 06:38

H1 results:



"Resilient" is maybe the most optimistic adjective they use! At least they seem to be marking down their PR holdings on a regular basis. NAV fall from 254p to 244p over 6 months not bad. Net cash is always a help.

[nexusltd] 03/8/2022 11:41

2022 Interim Results,19 AUGUST 2022, Webcast to start at 9.30am (BST. This will be interesting. With OCI, HPVE & PIN, QoQ NAV delta +ve; will APAX join the QoQ risers or the fallers?

[skyship] 16/7/2022 11:12

Jonwig - with acknowledgement I've reposted that Economist article link onto the PE thread.

[skyship] 16/7/2022 09:28

I'd forgotten that; though many articles I thought were regurgitated after publication elsewhere. I gave up my sub a year ago as I thought it was becoming too woke and too left-wing.

[jonwig] 16/7/2022 07:37

the turmoil in public markets has not yet fully bled into private equity: fundraising has marched on, large deals are still being consummated and paper returns look strong. The blood, however, may be about to flow. Buy-out barbarians made their names in the late 1980s, not the 1970s, for good reason. The corporate buy-out is a financial ploy unsuited to the coming period of slow growth and high inflation; no previous boom-and-bust cycle in private-equity’s 40-year history has been like it. Most important, cheap debt is unlikely to be able to save the day.

I can't fault that statement.



Strange that you have an opinion of Economist articles but don't know that they are written anonymously. 🙂

[skyship] 16/7/2022 06:15

Also, no problem paying an NAV-related dividend out of capital gain. APAX pays a declared 5% of NAV, so sharing the benefits with shareholders rather than clinging to all so as to boost the investment managers fees.

PIN & HVPE still maximise their fees by paying nothing to shareholders; so really, what's the point of holding if you receive no return?

[jonwig] 16/7/2022 05:42

But potentially paid out of capital, not income.

Economist had a good article last week about PE problems - basically, valuations aren't moving as fast as those of quoted companies so the market is speeding things up by awarding a bigger discount.

[skyship] 15/7/2022 20:18

Salpara - problem with buying APAX @ 162p is that the NAV discount of 33.6% compares unfavourably with:

# APEO - 410p - Disc. @ 43.6%

# HVPE - 2030p - Disc. @ 46.1%

# PIN - 245p - Disc. @ 45.2%

However, the one thing I do like about APAX is the great yield of 7.6%.

[salpara111] 15/7/2022 17:44

Been in this before. Taken a stake again today at 161. Definitely out of favour at present.