Apax Global Alpha Limited

Climate Impact & Sustainability Data (2019, 2023-01 to 2023-03)

Numerous examples of where the involvement of Apax’s Operational Excellence Practice (OEP), in portfolio efficiency programmes, has helped deliver a positive impact on climate change namely through the reduction of CO2 emissions in a number of underlying portfolio companies.

Launched a project focusing on workplace diversity across the Apax Funds’ portfolio, aiming for better performance and governance through diverse perspectives.
Implemented anti-slavery and human trafficking measures in its Global Business Standards.

Adopted the AIC Code of Corporate Governance and updated its governance framework to reflect changes to the UK Corporate Governance Code.
Maintained a strong, independent Board of experienced Non-Executive Directors.

Potential timing of exits and new investments in Private Equity
Availability of attractive investment opportunities for Derived Investments
Correction of valuation multiples or increase in credit spreads can impact investment returns
Underperformance of individual portfolio companies can impact investment performance
Persistent high discount to NAV may create dissatisfaction amongst shareholders
Changes in market conditions or availability of investment opportunities may change the portfolio mix
Decreases in the value of investments due to market weakness may affect the pace and value of realisations, leading to reduced liquidity and/or ability to maintain credit facilities and meet covenant requirements
Movements in exchange rates create NAV volatility when the value of investments is translated into the Company’s reporting currency (the euro)
Composition of the investment portfolio may fall outside of the investment policy, strategy and objectives, without the prior knowledge, consent or awareness of the Board or shareholders

Diversified risk approach for investments in Derived Debt
Maintain focus on Private Equity
Maintain AGA’s dividend policy
Remain fully or close to fully invested
Continue to evaluate commitments to the Apax Funds
Expect the majority of investments to be in Private Equity
Deploy funds not invested in Private Equity in Derived Investments
Reduce exposure to Derived Equity with focused investments
Diversification of the investment portfolio provides multiple avenues for liquidity
Cash flow modelling is prepared and tested under various stress test scenarios
Revolving credit facility was renewed in November 2018 for a further three years and is available in the event of substantial liquidity issues
The Investment Manager has implemented an investment framework to manage and monitor the investment portfolio of the Company
Currency exposure analysis and monitoring forms part of the investment framework
The Investment Manager maintains a monitoring tool that constantly tracks portfolio exposures
Transparency allows investors to hedge their own exposure as desired
Regular detailed reporting from the Investment Manager, including at quarterly Board meetings, keeps the Board appraised of the composition of the investment portfolio

Apax expects all those in its supply chain and its contractors to comply with its values.

Frameworks Used: AIC Code of Corporate Governance, GFSC Code

60% of majority-owned portfolio companies in Apax IX and X have completed Apax’s carbon baselining exercise