Apax Global Alpha reported a “strong” performance across its portfolio in the first six months of the year on Thursday, with a total net asset value return of 17.4%, or 14.9% at constant currency.
The FTSE 250 company said its total adjusted net asset value increased to around €1.4bn (£1.19bn), with its adjusted net asset value per share increasing to €2.81 from €2.45 over the six months ended 30 June.
It said it was focussed on four target sectors and a “good-to-great” strategy of business improvement in private equity, which was driving the portfolio’s strong returns.
The Apax funds identified a number of “attractive” investment opportunities in the period, with Apax Global Alpha deploying €85m across 11 new private equity investments.
Record distributions of €131.1m were received from full and significant partial private equity exits, which were deployed into 13 new derived debt positions to absorb liquidity in the fund into “attractive” yield investments.
A new commitment of $90m was made to the Apax Digital Fund II, the successor fund to the Apax Digital Fund, which invests in minority equity and growth buyout opportunities in mid-market technology companies.
The board said the company’s liquidity position was “healthy”, with available cash after net liabilities of €29m, and an undrawn evergreen revolving credit facility of €140m.
Derived Investments of €439m provided a further source of funding for Apax Global Alpha.
It declared an interim dividend of 5.97p per share, in line with its stated policy to distribute 5% of its net asset value per annum.
“The focus on global opportunities and sectors that continue to show strong structural growth has delivered good results in the first half of the year,” said chair Tim Breedon.
“AGA’s portfolio is now mature with the private equity portfolio diversified across fund vintages and generating substantial cash distributions.
“As the Covid-19 vaccine rollout continues and global economies further rebound, AGA is well positioned to continue to provide long-term value and attractive income for shareholders.”
At 0853 BST, shares in Apax Global Alpha were up 0.3% at 219.34p.
