Altamir - Registration Document 2016

FINANCIAL AND LEGAL INFORMATION

Risk factors

Nature of the risk

Risk mitigation

Listed companies as of 31 December 2016 made up 26% of the portfolio (40% at 31 December 2015). A 1 0 % drop in the market prices of these listed securities would have an impact of €22.7m on the valuation of the portfolio as of 31 December 2016. In addition, most unlisted securities are valued in part on the basis of peer-group multiples, and in part on multiples of recent private transactions.

A change in the market prices of the comparable companies does not represent a risk, because although these comparables provide an element for calculating the fair value at a given date, the final value of the investments will be based on private transactions, unlisted by definition, in which the strategic position of the companies or their ability to generate cash flow takes precedence over the market comparables.

1

2) Interest rate risks

Risks related to lbo transactions

In the context of leveraged transactions, Altamir is indirectly subject to the risk of an increase in the cost of debt and the risk of not obtaining financing or being unable to finance the planned new transactions at terms that ensure a satisfactory return.

In 2015, the debt markets remained very open, and debt funds regained prominence. A debt manager joined Apax Partners MidMarket’s investment team in 2015. Apax Partners LLP has a dedicated debt team split between London and New York.

Risks related to short-term cash investments

As of 31 December 2016, Altamir’s statutory financial statements showed a net cash balance of €67.3m. It also subscribed to a €15m tax-efficient capitalisation fund whose capital is guaranteed. Money-market mutual funds are valued at historical cost. Capital gains on divestments are calculated based on the difference between the sale price and the weighted average purchase price. The Company recognises unrealised capital gains solely in its consolidated financial statements. The nature of the securities does not justify any impairment.

If the need for cash requires the Company to terminate its time deposits, the penalty would be a reduction in the interest earned. There is no risk of a loss of capital. The sale of marketable securities and revenue therefrom resulted in a profit of €6 in 2016. The sale of negotiable debt securities and time deposits generated a capital gain in 2016 of €1,135,629.

Risks related to other financial assets and liabilities

Financial assets tied to an interest rate include shareholder loans or securities such as corporate bonds classified and held as portfolio investments or receivables related to equity investments. Altamir has €39m in lines of credit at variable rates on standard market terms. An interest rate rise would increase the cost of financing.

These financial assets are assumed to be redeemed or converted at maturity. As a result, they do not present any interest rate risk per se. As of 31 December 2016, the credit lines were undrawn. They are only occasionally used.

3) Currency risk

Existing shares in Altamir or shares to be created are denominated in euros. Accordingly, profitability for investors who bought Altamir shares using currencies other than the euro may be affected by fluctuations of that currency against the euro.

Altamir aims to invest, either directly or indirectly through the Apax France VIII and Apax France IX private equity funds, at least 75% in France. The operating currency of the majority of the companies in the portfolio is the euro. However, some investments made by Altamir to date are denominated in foreign currencies, and consequently their value may vary according to exchange rates. Shares of the Apax VIII LP and Apax IX LP funds are denominated in euros. The funds themselves have a global investment strategy. Exchange rate fluctuations might affect the valuation of some of their investments at the closing date or at the date they are sold. Altamir does not have the information necessary to measure the sensitivity of the investments of these funds to fluctuations in exchange rates. The portfolio’s exposure by currency is presented in the notes to the consolidated financial statements.

As of 31 December 2016, the only assets denominated in foreign currencies were the securities and receivables of ten portfolio companies, which represented €55.7m or 5.83% of total assets.

Altamir does not use firm or conditional forward instruments to hedge or to gain exposure to market risks (equity markets, interest rates, exchange and credit risks).

Altamir does not hedge against currency fluctuations.

The foreign exchange impact is not material with respect to the expected gains on the securities in absolute value

71

REGISTRATION DOCUMENT 1 ALTAMIR 2016