Funds advised by Apax Partners sell stake in Neuraxpharm

The Apax VIII Fund (“Apax VIII”), in which AGA is a limited partner, announces that it has agreed to sell its stake in Neuraxpharm, a leading European specialty pharmaceutical company focused on the treatment of central nervous system disorders (CNS), to Funds advised by Permira. The transaction is expected to close in Q4 2020 subject to regulatory approvals.

The Apax VIII investment in Neuraxpharm is expected to deliver a total Gross MOIC of 3.5x and a Gross IRR of 36% ¹. The transaction values AGA’s look through investment in Neuraxpharm at approximately €54m. This would represent an uplift of 66% to Neuraxpharm’s last Unaffected Valuation² and an uplift of c.€22m (c.€0.04 per share) in the Adjusted Net Asset Value (“Adjusted NAV”) of AGA at 30 June 2020.

Together with the exit of Neuraxpharm, Apax VIII has now fully exited 14 deals at an average uplift of 20% to Unaffected Valuations.

Note that these figures relate to AGA’s look through position of Apax VIII’s overall investment in Neuraxpharm and are stated before taking into account any closing adjustments, fees, costs, and carried interest, and translated based on today’s exchange rates where applicable³. The sale remains subject to customary closing conditions.

Drawing on Apax Partners’ deep knowledge of the healthcare sector, Apax VIII saw the opportunity to create a European champion in CNS specialty pharmaceuticals and in 2016 acquired Invent Farma in Spain and neuraxpharm arzneimittel in Germany, creating the foundations of the pan-European Neuraxpharm group. Since then, and with the support of Apax VIII, Neuraxpharm has experienced rapid international expansion both through greenfield operations and several acquisitions, transitioning from a local player to a leading pan-European specialty company that covers 80% of the European market.

AGA, whose shares are listed on the London Stock Exchange, provides investors with access to the investment expertise of Apax Partners through its investments in a diversified portfolio of private equity funds advised by Apax Partners as well as derived investments in debt and equity. In 2012, AGA’s predecessor vehicle made a commitment of c.€342m⁴ to Apax VIII.

Contact details

Investor enquiries
Katarina Sallerfors
Investor Relations – AGA
Telephone: +44 (0)20 7872 6526
Email: Katarina.sallerfors@apax.com

Footnotes

1. ^{Represents Gross IRR and Gross MOIC shown for Apax VIII euro tranche}
2. ^{Unaffected Valuation is determined as the fair value in the last quarter before exit, when valuation is not affected by the exit process (i.e. because an exit was signed, or an exit was sufficiently close to being signed that the Apax Funds incorporated the expected exit multiple into the quarter end valuation)}
3. ^{Based on Bloomberg closing EUR/USD FX rate on 18 September 2020 of 1.184}
4. ^{Represents AGA’s commitment of €159.6m in Apax VIII euro tranche and $218.4m in Apax VIII USD tranche translated to euro using latest closing FX rate noted above}

Notes:

1. Note that references in this announcement to Apax Global Alpha Limited have been abbreviated to “AGA” or “the Company”. References to Apax Partners LLP have been abbreviated to “Apax Partners” or “the Investment Adviser”
2. Please be advised that this announcement may contain inside information as stipulated under the Market Abuse Regulations (EU) NO. 596/2014 (“MAR”)
3. This announcement is not for release, publication or distribution, directly or indirectly, in whole or in part, into or within the United States or to “US persons” (as defined in Regulation S under the United States Securities Act of 1933, as amended (the “Securities Act”)) or into or within Australia, Canada, South Africa or Japan. Recipients of this announcement in jurisdictions outside the UK should inform themselves about and observe any applicable legal requirements in their jurisdictions. In particular, the distribution of the announcement may be restricted by law in certain jurisdictions
4. The information presented herein is not an offer for sale within the United States of any equity shares or other securities of Apax Global Alpha Limited (“AGA”). AGA has not been and will not be registered under the US Investment Company Act of 1940, as amended (the “Investment Company Act”). In addition, AGA’s shares (the “Shares”) have not been and will not be registered under the Securities Act or any other applicable law of the United States. Consequently, the Shares may not be offered or sold or otherwise transferred within the United States, or to, or for the account or benefit of, US Persons, except pursuant to an exemption from the registration requirements of the Securities Act and under circumstances which will not require AGA to register under the Investment Company Act. No public offering of the Shares is being made in the United States
5. The information presented herein is not an offer for sale within the United States of any equity shares or other securities of Apax Global Alpha Limited (“AGA”). AGA has not been and will not be registered under the US Investment Company Act of 1940, as amended (the “Investment Company Act”). In addition, AGA’s shares (the “Shares”) have not been and will not be registered under the Securities Act or any other applicable law of the United States. Consequently, the Shares may not be offered or sold or otherwise transferred within the United States, or to, or for the account or benefit of, US Persons, except pursuant to an exemption from the registration requirements of the Securities Act and under circumstances which will not require AGA to register under the Investment Company Act. No public offering of the Shares is being made in the United States

About Apax Global Alpha Limited

AGA is a Guernsey registered closed-ended collective investment scheme incorporated as a non-cellular company that listed on the London Stock Exchange on 15 June 2015. It is regulated by the Guernsey Financial Services Commission.

AGA’s objective is to provide shareholders with capital appreciation from its investment portfolio and regular dividends. The Company is targeting an annualised Total Return, across economic cycles, of 12-15% (net of fees and expenses) including a dividend yield of 5% of Net Asset Value.

The investment policy of the Company is to make Private Equity investments in Apax Funds, and Derived Investments which are investments in equities and debt derived from the insights gained via Apax Partners’ Private Equity activities.

Further information regarding the Company and its publications are available on the Company’s website at www.apaxglobalalpha.com.

 

About Apax Partners LLP

Apax Partners LLP (“Apax Partners”) is a leading global private equity advisory firm and over its more than 40-year history, Apax Partners has raised and advised funds with aggregate commitments of over €40 billion.  Funds advised by Apax Partners invest in companies across four global sectors of Tech & Telco, Services, Healthcare and Consumer. These funds provide long_term equity financing to build and strengthen world_class companies.

For further information about Apax Partners, please visit www.apax.com. Apax Partners is authorised and regulated by the Financial Conduct Authority in the UK.

About Neuraxpharm

Neuraxpharm is a leading European specialty pharmaceutical company focused on the treatment of central nervous system disorder (CNS) with a unique understanding of the European CNS market built over 35 years. More info: https://www.neuraxpharm.com/