Apax Global Alpha reports Q1 decline in NAV per share
By Josh White
Date: Friday 02 May 2025
(Sharecast News) - Apax Global Alpha reported a 2.5% decline in net asset value per share for the first quarter on Friday, as earnings growth from its private equity portfolio was offset by adverse foreign exchange movements.
The FTSE 250 firm said that on a constant currency basis, NAV per share rose 0.5% during the period.
As at 31 March, NAV stood at €1.16bn, down from €1.23bn at year-end, equivalent to €2.38 or £2.00 per share.
The portfolio remained fully invested, with 86% allocated to private equity and 14% to debt investments.
Apax's board reiterated its concern over the discount to NAV and said it continues to evaluate potential measures to ensure shareholders benefit from the underlying portfolio value.
The underlying private equity portfolio showed continued strong operating performance, with average EBITDA growth of 16.0% and revenue growth of 10.6%.
It said the Apax XI fund remained a key value driver, recording average EBITDA growth of 25% over the last 12 months.
Deployment totalled €52m in closed transactions, including investments in S&W and CohnReznick, with one further deal in DLRdmv signed during the quarter.
AGA said it expected to receive €55m in distributions following the take-private of Paycor, a partial exit from Lexitas, and the signed exit of Assured Partners.
The debt portfolio delivered a total return of -0.8% in euro terms, but gained 2.5% on a constant currency basis.
Six debt positions were exited during and after the quarter, realising €51m at near-par value.
The portfolio maintained a yield to maturity of 10.9% and income yield of 7.9%.
Apax said its balance sheet remained robust, with expected capital calls covered 1.8 times through available liquidity and upcoming private equity distributions.
Cash at quarter-end stood at €15m, and a €12.5m draw on the revolving credit facility was fully repaid on 2 May.
AGA returned €36m to shareholders during the quarter through dividends and share buybacks.
Post-period, Nadya Wells was appointed to the board with effect from 1 July.
"AGA's underlying private equity portfolio companies continued to exhibit steady performance in the quarter, with total return impacted by foreign exchange-driven headwinds," said Ralf Gruss, Apax partner and member of AGA's investment committee.
"Since our last update, we have seen a sharp shift in the macro backdrop, with recent US tariff announcements adding to market volatility.
"While the situation is still evolving, the AGA Private Equity portfolio is largely insulated with 90% of the portfolio not expected to face any first-order impacts, reflecting the Apax Funds' focus on tech, services, and internet/consumer businesses."
At 0940 BST, shares in Apax Global Alpha were up 0.39% at 118.66p.
Reporting by Josh White for Sharecast.com.
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