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FINANCIAL AND LEGAL INFORMATION
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Business description
madedirectlyor
via
funds), the respectiveweightings of these two
investment types, if both are used, the legal form of the entities
and the accounting methods used.
Assuming that investors have been able to calculate the overall or
direct costs of the companies theywish to compare, one question
still remains:
WHICH DENOMINATOR SHOULD BE USED TO COMPARE
THE EXPENSES OF ONE ENTITY WITH THOSE OF ANOTHER?
a) Denominator for the overall cost approach
The ratio:
Total costs
is not appropriate
Net Asset Value
if the management fees paid by underlying funds are included
in total costs, since the management fees are calculated based
on the capital committed to the funds. There is a long lead time,
generally three to four years, before this capital is put to work
and a period of at least two years before an investment begins
to appreciate in value. Consequently, costs increase, whereas for
two or three years the NAV does not due to these investments
(the J-curve effect).
For this reason, we recommend the ratio used to compare the
expenses of private equity funds that invest directly:
The ratio:
Total costs
Committed and invested capital
To use this ratio for a listed private equity company, two
adjustments are necessary:
a)
interest and taxes (specific to private equity companies, see
above)must bededucted fromoverall costs.
This adjustment is
not necessarywhen comparing listedprivate equity companies
with each other
;
b)
to calculate the denominator, the total of direct investments
at cost must be added to the capital committed to the funds.
Note that committed capital may change during the year. In
such cases, an average of starting and ending balances should
be used.
b) Denominator for the direct cost approach
The following ratio is best suited:
Total direct costs
Average NAV
where the average NAV is the average of the opening NAV and
closing NAV.
1.3.3
ALTAMIR’S INVESTMENT POLICY
FROM FOUNDING UNTIL 2011
Co-investment with the funds managed by Apax Partners SA up
to the Apax France VII fund.
From December 1995, when it was listed on the stock exchange
under thenameAltamir &Cie, theCompanyco-invested
pari passu
with the funds managed by Apax Partners SA, based on their
respective amounts of assets under management. On 31 March
2006, a newcompany, Amboise Investissement, was created and
listed on the stock exchange. Also advised by Apax Partners SA,
Amboise Investissement co-invested
pari passu
with the Apax
France funds and Altamir, based on the amount of assets under
management. Altamir and Amboise Investissement merged on
4 June 2007, and the new company took on the name of Altamir
Amboise. Altamir Amboise continued to co-invest according
to the same terms and based on assets under management in
every transaction in which the private equity funds managed by
Apax Partners SA invested. InApril 2007, the Company andApax
Partners SA signed an agreement setting out the rules of co-
investment (“co-investment agreement”).
Since its creation, the Company has been able make use of
an adjustment facility to adjust its co-investment rate at the
beginning of each calendar half-year for the six months to come
based on its cash flow forecast.
In the event of a follow-on investment, the percentages invested
by theCompany and the fundwere the same as those of the initial
investment (and not that in effect as of the date of the follow-on
investment, if different).
The co-investment percentages evolved as follows:
Fund
Date
Investment percentage
Total
FPCI Fund Altamir & Cie
Amboise
Invest
Altamir
Amboise
Apax France VII
01/07/2006
50%
25%
25%
-
100%
01/07/2007
(1)
57%
-
-
43%
100%
(1) Merger of Altamir and Amboise Investissement.
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REGISTRATION DOCUMENT
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ALTAMIR 2016