Apax Global Alpha (AGA) was 65 percent invested by 30 June, following a cash injection from a €300 million initial public offering. Its invested portfolio, excluding hedge funds, stood at €572.8 million, AGA said in an earning statement.
The listed investment company, which invests in Apax private equity funds and related private equity asset classes, is expected to indirectly invest €71.5 million in five new private equity investments through its holdings in Apax funds AVIII and AMI, the statement said.
Of its investment portfolio, 46 percent is in private equity, equivalent to €263.8 million, and 54 percent (€309 million) in derived instruments.
In the first half of the year, AGA made six investments in debt and another in listed equities, totalling €76.3 million.
“We are actively identifying new opportunities to invest or commit the net proceeds from the IPO within the six to 12 months post-listing. While the general pricing environment remains elevated, the Apax private equity funds are finding good value opportunities, particularly in Europe,” Apax Partners chief investment officer Nico Hansen said in the statement.
He added that the underlying Apax funds focused on “under-appreciated niches” in North America and emerging markets. AGA has also identified a number of derived investment opportunities “where we can exploit market inefficiencies as they arise”.
AGA’s net asset value, excluding performance fee reserves, increased by 8 percent over the first six months of the year to €877.9 million, with private equity increasing in NAV from €198.8 million at the end of December 2014 to €261.2 million at the end of June.
Technology and telecommunications comprise 37 percent of its total investment portfolio, equivalent to €211.1 million, with North America accounting for 59 percent of its investments.
Apax private equity funds have returned €10.6 million to AGA over the first half of the year while the firm exploited strong exit markets, the statement said. AGA also exited two debt instruments and three listed equities realising a total of €89 million.
For the six months ending 30 June, the fund’s invested portfolio generated a gross internal rate of return of 35.6 percent. Its private equity portfolio reported a gross IRR of 46 percent.
“The company is on track to deliver its total shareholder return and dividend yield once fully invested,” AGA chairman Tim Breedon said.
AGA is targeting an annualised total shareholder return of 12-15 percent, net of fees and expenses, and a dividend yield of 5 percent of NAV once fully invested, the statement said.
The fund listed on the London Stock Exchange on 15 June, as previously reported by Private Equity International. Its shares closed trading on 30 June at 125.4p, up from its offer price of 119.2p.