Q3 2024 Apax Global Alpha Ltd Earnings Call Transcript
Key Points
- Apax Global Alpha Ltd (LSE:APAX) reported an improvement in portfolio performance for Q3 2024, with a NAV of approximately EUR1.2 billion.
- The private equity portfolio is well-positioned with continued good earnings growth, contributing to a 1.7% increase in NAV per share on a constant currency basis.
- The company has seen strong exit activity, with six full exits in the period returning an average of 2.7x cost.
- Apax Global Alpha Ltd (LSE:APAX) has returned EUR67 million to shareholders through share buybacks and dividends, equivalent to over 5% of opening NAV for 2024.
- The new capital allocation framework, including regular dividends and a distribution pool for buybacks, aims to enhance shareholder value and provide income certainty.
- Foreign exchange headwinds negatively impacted total NAV return per share, resulting in a slight decline of 0.2% for the quarter.
- The decision to no longer have a dedicated team focused on healthcare may limit opportunities in this sector.
- The debt portfolio experienced a return of minus 2.2% in Q3 2024, primarily due to foreign exchange headwinds.
- The increase in net debt levels in the portfolio, driven by M&A activities, could pose financial risks.
- Despite the commencement of buybacks, they have not yet had a measurable impact on NAV per share.
Good morning, everyone. Thank you for joining Apax Global Alpha's Q3 2024 results presentation. My name is Ralf Russ. I'm a partner at Apax and a member of AGA's investment Committee. I look forward to taking you through the presentation and I will answer any questions you may have at the end of the call. As a reminder and for those who are new to the company, AGA provides access to a global portfolio of mostly private companies owned by the Apax Private Equity Funds. And I'm pleased to report that the performance of the portfolio has improved in the quarter ending 30 September 2024.
At quarter end, AGA's NAV was about EUR1.2 billion, which translates to EUR2.45 or GBP2.04 per share. Whilst on a constant currency basis, total NAV return per share was up 1.7% in the quarter, the impact of foreign exchange headwinds meant that total NAV return per share was slightly negative at 0.2%. To put this performance into context, there are a few points that I want to highlight.
First, as mentioned at the half-year results, the private equity portfolio
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