Apax Global Alpha turns in 'strong' first quarter performance

Apax Global Alpha reported a “strong” performance in its first quarter on Wednesday, with a total net asset value return of 10.4%, or 6.8% at constant currency.

The FTSE 250 firm signed or closed two full exits in the three months ended 31 March, being Boats Group and Signavio, as well as one “significant” partial exit from Psagot, and one public listing of InnovAge in its private equity business.

Excluding the InnovAge IPO, the average uplift on exits was 50.5% to the previous unaffected valuations.

Its adjusted net asset value closed the quarter at €1.3bn, with its adjusted net asset value per share coming in at €2.64, while those figures in sterling were £1.11bn and £2.25, respectively.

Apax X had a “strong pipeline” of new investments, the board reported, having signed or closed six new deals in the first quarter.

The company’s derived investment portfolio had a total return of 8.0% in the period, driven by “strong performance” in derived debt, which made up the largest part of the derived Investment portfolio, and a rebound in the derived equity positions.

Apax Global Alpha said its liquidity position was “healthy”, with €100m (£86.3m) of cash and its evergreen revolving credit facility of €140m undrawn.

Derived Investments of €369m provided a further source of funding for the company.

Finally, the board announced the renaming of its consumer sector to 'internet and consumer', incorporating all online marketplace assets that were previously under services, to reflect its increased focus on digital consumer opportunities away from traditional retail.

“It has been a very good start to the year with Apax Global Alpha continuing to deliver strong net asset value performance in the quarter,” said chief operating officer Ralf Gruss.

“There is a strong pipeline of new investments and the current portfolio is performing well, benefitting from a focus on sectors that are showing strong structural growth, and investment in digital enablement and digital acceleration.

“As global economies continue to open, AGA's portfolio is well positioned for continued growth and to generate further value for shareholders.”

At 0807 BST, shares in Apax Global Alpha were up 1.59% at 209.79p.