Apax Global Alpha (whose ticker is APAX, but to avoid any potential confusion with the manager has been abbreviated throughout this note as AGA) has been listed for just over five years, but has been in operation for well over a decade. AGA provides access to the private equity expertise of Apax Partners. It also has a portfolio of derived investments (debt and equity investments), which provides a unique differentiator for AGA, reduces cash drag and helps support an attractive dividend. AGA has built up an enviable track record since launch, with returns towards the top of its listed private equity peer group. In addition, its focus on sectors such as technology and healthcare, appears to have helped it navigate the pandemic successfully. Recent deals have underscored the ‘hidden’ value within the portfolio. Private equity investments are valued conservatively. Exits achieved by AGA in 2020 came at a 40% average uplift to previous valuations.
10 Mar 2021
An abundance of alpha
Sign up for free to access
Get access to the latest equity research in real-time from 12 commissioned providers.
Get access to the latest equity research in real-time from 12 commissioned providers.
An abundance of alpha
Apax Global Alpha Ltd. (APAX:LON) | 145 1.2 0.6% | Mkt Cap: 713.6m
- Published:
10 Mar 2021 -
Author:
James Carthew | Matthew Read | Shonil Chande - Pages:
Apax Global Alpha (whose ticker is APAX, but to avoid any potential confusion with the manager has been abbreviated throughout this note as AGA) has been listed for just over five years, but has been in operation for well over a decade. AGA provides access to the private equity expertise of Apax Partners. It also has a portfolio of derived investments (debt and equity investments), which provides a unique differentiator for AGA, reduces cash drag and helps support an attractive dividend. AGA has built up an enviable track record since launch, with returns towards the top of its listed private equity peer group. In addition, its focus on sectors such as technology and healthcare, appears to have helped it navigate the pandemic successfully. Recent deals have underscored the ‘hidden’ value within the portfolio. Private equity investments are valued conservatively. Exits achieved by AGA in 2020 came at a 40% average uplift to previous valuations.