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Apax Global Alpha Ltd (LSE:APAX), a closed-ended investment company that offers access to private equity funds managed by Apax Partners LLP, reported a decline in net asset value (NAV) as of June 30, 2024. The adjusted and unadjusted NAV fell to €1.24 billion from €1.29 billion a year earlier. This decrease translates to 2.13 pence per share.
Negative Total Return
The NAV total return for the first half of 2024 was negative 1.4%, or negative 3.3% when adjusted for constant currency. In the second quarter alone, the NAV total return was negative 1.0%, or negative 1.5% at constant currency. The negative performance was primarily attributed to writedowns in the value of Vyaire Medical Inc, a portfolio company of the Apax VIII fund, which experienced weak trading conditions.
Impact of Vyaire Medical Writedown
If the impact of Vyaire Medical were excluded, the NAV total return for the half-year would have been positive 1.5%. However, even without Vyaire Medical’s impact, the return remained negative at 0.3% when adjusted for constant currency. The writedown significantly affected the overall performance for the period.
Positive Development with Thoughtworks
In a separate development, Apax Global Alpha announced that Thoughtworks Inc, a portfolio company from the Apax IX fund specializing in technology consultancy, will be taken private by Apax funds. The transaction is valued at $1.75 billion, equating to $4.40 per Thoughtworks share. This deal represents a 55% uplift from the company’s valuation on Apax Global Alpha’s books, contributing approximately €0.02 per share to the NAV.
Share Buyback Initiative
Additionally, Apax Global Alpha has initiated a €30 million share buyback program. This move is part of a new capital allocation framework that the company announced in June 2024. The share buyback is intended to enhance shareholder value and reflect the company’s commitment to capital management.
Upcoming Full-Year Results
Apax Global Alpha is scheduled to report its full half-year results on September 5, 2024. The report will provide more insights into the company's performance and outlook.
