Apax Global Alpha Ltd (LON: APAX) reported a strong third quarter performance in their recent trading update, after growth came from a blooming performance from its private equity portfolio.
The company, which invests in private equity and derived investments, reported a total net asset value return of 4.9% for the three months ended September 30.
This compared to a 1.8% total return in the same period of 2018, which would have been pleasing for shareholders.
Of the 4.9% total NAV return, 3.1% came from private equity, 0.6% from derived debt, and 2.3% from foreign exchange.
Derived equity deducted 0.6% from total NAV return, while costs & other movements deducted 0.3% and performance fee adjustment subtracted a further 0.2%
Apax Partners Chief Operating Officer Ralf Gruss said: “The results for the September quarter reflect the continued momentum of [Apax Global Alpha] seen throughout the year. Excellent performance in private equity reflects mainly value creation from the Apax VIII and Apax IX fund portfolio companies. Returns from derived debt were strong, and weighting of derived equity in the portfolio was further reduced.”
In the last 12 months trading to September 30, total return was 18% which Apax Global Alpha attributed to the strong performance of its private equity portfolio and gains on foreign exchange.
In 2018, the 12 month figure for total NAV return to September 30 was 12%.
The investor’s adjusted net asset value was €1.06 billion, up from €1.03 billion on June 30 and €937.3 million year-on-year.
Adjusted NAV excludes Apax Global Alpha’s €4.6 million performance fee reserve on September 30.
Adjusted NAV per share was €2.15, rising from €1.91 a year before and from €2.10 at the end of June, showing strong performance from the second quarter update.
As a result, the share price of Apax Global Alpha reached a new yearly high.
The stock has a market capitalization of $809.33 million and a PE ratio of 8.49.
The firm’s fifty day moving average price is GBX 158.41 and its two-hundred day moving average price is GBX 141.19.
Shares of Global Apax Alpha are currently trading at 165p per share. 6/11/19 11:51BST.
