Apax Global Alpha’s investment performance was broadly flat in H1 2016. Against a backdrop of volatile markets, Total Return for the period was -0.6% and on a constant currency basis the Total Return was +0.6%. In the year since 30 June 2015, adjusted NAV per share has grown 2.3% to EUR1.82. In Sterling terms, adjusted NAV per share has increased 18% from GBP1.29 to GBP1.52 over the same period, reflecting both investment performance and the decline in the value of the currency.
The main drivers were positive performance in both Private Equity and Derived Equity which was offset by the Derived Debt portfolio performing below expectations in H1 2016, mainly due to fair value movements in a limited number of portfolio positions. Adverse FX movements during H1 2016 also contributed negatively to AGA’s Total Return.
AGA made its first dividend payment earlier this year, in line with the Company’s dividend policy announced at the time of the IPO. the Board has approved a second, semi-annual dividend payment in respect of the financial period to 30 June 2016, of 3.95p per share, using the closing exchange rate on 11 August 2016. The dividend payment is equal to 2.5% of AGA’s euro NAV as at 30 June 2016, equivalent to EUR4.59c.
On the first anniversary of AGA’s IPO on 15 June 2016, approximately 7.5% of the Company’s ordinary shares held by Future Fund, former Apax executives and the Apax Foundation were released from lock-up. This first tranche represented around 37m shares or 20% of the shares held by these investors at IPO. This staggered release of shares is designed to ensure former employees of AGA’s Investment Adviser remain committed to the success of AGA in the long term, whilst the free float of AGA shares increases over time. AGA and its corporate broker facilitated a process for the placement of shares that came out of lock-up. In the event there was only demand for 2.5m shares to be tendered; a clear indication that AGA remains an attractive value proposition by its pre-IPO shareholders. The Board is considering making a similar mechanism available to its pre-IPO shareholders at future lock-up release dates.
AGA : Apax Global Alpha flat in H1