Apax Global Alpha — Seeking a fresh start

Apax Global Alpha’s (AGA’s) investment advisor (Apax) and board have been proactively addressing the factors behind AGA’s subdued performance in recent years (including a 0.8% NAV total return (TR) in 2024), which have resulted in an annualised TR of 8.9% since inception, below the 12–15% pa target. Major actions include Apax’s sharpened focus on its three core sectors (tech, services and internet/consumer), a reduction in its exposure to listed holdings and abandoning new debt investments in AGA’s private equity (PE) portfolio constituents. This is against the backdrop of a gradual recovery in the PE sector in 2024, as illustrated by the 14% increase in global PE deal value and a rise in average buyout entry multiples to 11.9x from 11.2x in 2023, according to McKinsey’s Global Private Markets Report 2025. A potential rebound in AGA’s NAV TR (with some promising initial signs from its latest buyout fund, Apax XI), coupled with the well-defined capital allocation framework it introduced in 2024, could trigger a narrowing of the current 36% discount to NAV (£2.08 per share), above the 29% average discount across PE peers (excluding 3i).