Hardman & Co Research on Apax Global Alpha (APAX) 2023 Capital Markets Day: accessing hidden gems

Hardman Co Research on Apax Global Alpha (APAX)

2023 Capital Markets Day: accessing hidden gems

The key takeaway from AGA’s 27 June Capital Markets Day (CMD) was that 84% of value creation comes from operational improvements that APAX makes in the investee companies. On average, under APAX’s ownership, revenue growth accelerates by 700bps, EBITDA growth 1,500bps and the EBITDA margin 700bps. Additionally, the day highlighted that i) AGA gives access to companies unavailable elsewhere, ii) its companies are growing and performing well, iii) it is an All Weather Investment, with 84% of value creation under the manager’s control, iv) it has a robust balance sheet, and v) the 5%-of-NAV dividend has more value when the shares are at a big discount. Given the long-term NAV outperformance, the discount appears anomalous.

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About Hardman Co: Hardman Research Ltd, trading as Hardman Co, is an appointed representative of Capital Markets Strategy Ltd and is authorised and regulated by the Financial Conduct Authority; our FCA registration number is 600843. Hardman Research Ltd is registered at Companies House with number 8256259. Attention is drawn to the important disclaimers at the end of the report.