Half Year 2024 Apax Global Alpha Ltd Earnings Call Transcript
Key Points
- The private equity portfolio continues to show good earnings growth, with mid-teens growth over the last 12 months.
- Increased investment and exit activity, with four new investments and five full exits since the start of the year.
- The introduction of a new capital allocation framework, including share buybacks, aims to drive further NAV accretion.
- The debt portfolio achieved a total NAV return of 2.1% in the first half of 2024, with a long-term track record of strong performance.
- The Apax XI fund, which is over 30% invested, has shown promising momentum and is expected to be a key driver of value going forward.
- Total NAV return for the first six months of 2024 was down 1.4%, primarily due to the write-down of Vyaire and the drag from listed private equity holdings.
- Vyaire's impact on performance was significant, with the company filing for Chapter 11 and being completely written off.
- The listed private equity holdings have introduced volatility and have been a major drag on performance over the last 2.5 years.
- The movement in net debt was negative due to an increase in absolute net debt levels, driven mainly by portfolio company M&A.
- Foreign exchange movements, particularly the strengthening of the euro against the dollar, negatively impacted NAV.
Thank you, and good morning, everyone. Thanks for joining Apex Global Alpha's 2024 interim results presentation. My name is Ralf Gruss. I'm a partner at Apex and a member of AGA's Investment Committee.
With me on the call today is Salim Nathoo. Salim is also a member of AGA's Investment Committee as well as a member of the investment committees of the global buyout funds; the Apax Digital Fund and the Apax Global Impact Fund.
I hope to give you an overview of AGA's portfolio and the performance in the first six months of 2024, and Salim will then cover the private equity portfolio in more detail before we open them up for questions.
At June 30, 2024, AGA's NAV was approximately EUR1.024 billion, which translates to EUR2.52 or GBP2.13 per share. The total NAV return for the first six months of the year was down 1.4%, which is clearly disappointing. On a high level, the key drivers for this were the write-down of Vyaire across both the private equity and debt
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