In This Article:
Release Date: March 04, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Apax Global Alpha Ltd (LSE:APAX) returned EUR69 million to investors via dividends and buybacks, equating to a dividend yield of 7.8%.
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The Apax XI Fund, to which AGA has a $700 million commitment, has shown strong performance with a 1.3 times gross money multiple after only an eight-month holding period.
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The company has actively reduced its exposure to listed Private Equity positions, decreasing from 25% to 2% of NAV.
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Apax Global Alpha Ltd (LSE:APAX) has a robust balance sheet with calls in the next 12 months covered 2.4 times.
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The core sectors of Tech, Services, and Internet/Consumer contributed positively to NAV growth, with promising returns expected from recent investments.
Negative Points
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Total NAV return per share for the year was only 0.8%, which is considered disappointing.
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Challenges in retail and healthcare investments, particularly the write-down of Vyaire, negatively impacted performance.
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The company experienced a slowdown in Consumer-exposed businesses and those exposed to cyclical headwinds.
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The performance since IPO has been below the long-term target, with underexposure to Private Equity assets initially.
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The decision to value AssuredPartners at a potential IPO's value led to a sale at a 10% discount to the last unaffected valuation.
Q & A Highlights
Q: What are your thoughts on the underperformance from the IPO to date? A: Ralf Gruss, Partner and Chief Operating Officer, explained that the performance since IPO has been below the long-term target, which is disappointing. Initially, AGA was underexposed to Private Equity assets, which are structurally higher returning compared to debt. Over time, exposure to Private Equity increased from 30% at IPO to over 80% now, which should help future returns. Additionally, AGA has returned significant capital to shareholders, with 95p per share paid out in dividends since IPO.
Q: Can you outline where portfolio companies have the most exposure to tariffs and any mitigating strategies? A: Salim Nathoo, Partner, noted that less than 15% of the portfolio is exposed to tariffs, primarily in medical devices and consumer sectors. Most portfolio companies are in sectors like software and tech services, which are less affected by tariffs. Companies are preparing mitigation strategies, including passing on costs, exploring alternative manufacturing locations, and adjusting shipping logistics.