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FINANCIAL AND LEGAL INFORMATION
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Analysis and comments on the financial year
1.4
ANALYSIS AND COMMENTS ON THE FINANCIAL
YEAR
1.4.1
OVERVIEWAND PERFORMANCE
2016 was another excellent year for private equity in Europe.
Buyout fund activity remained at a high level, despite falling back
for the second year in a row, both for investments, which totalled
€119bn
vs.
€133bn in 2015, and for divestments throughmergers/
acquisitions, which were €138.7bn
vs.
€162.8bn in 2015 (source:
MergerMarket). For the fifth consecutive year, divestments
exceeded investments, especially when accounting for exits
through stock market flotation and dividend recapitalisations, in
addition to those through mergers and acquisitions. Because of
this, fund raising sawrobust growth inEurope, with€100bn raised
by funds having closed in 2016
vs.
only €67bn in 2015, two-thirds
of which was for LBO funds (source: Preqin).
Competition for newassets inwhich to invest remains fierce. Large
organisations have become more aggressive, and an abundance
of low-cost debt is contributing to keeping acquisition multiples
high.
Against this backdrop, Altamir had an excellent year in 2016,
characterised by significant portfolio turnover, several value-
creating build-up transactions and very good performance from
co-investments carried out alongside the Apax Funds, notably
in Marlink and Snacks Développement.
PERFORMANCE
Net Asset Value (NAV), calculated according to IFRS, stood
at €21.62 per limited partners’ ordinary share, representing
an increase of 16.4% year-on-year (€18.60 as of 31 December
2015). The increase was 19.2% including the dividend of €0.56
per share paid in 2016. The year-on-year NAV increase can be
attributed principally to the growth in EBITDA of the portfolio
companies (up 18.6% for theApax France VIII andApax France
IX fundportfolioandup7.2%for theApaxVIII LPandApax IXLP
fundportfolio). Theweighted averagemultiple decreased from
10.66x (in December 2015) to 10.46x for the French portfolio
and held steady at 11.9x for the portfolio of companies held
via
Apax VIII LP.
Net Asset Value is the most relevant financial indicator for
reviewing the Company’s business activity. It is calculated by
valuing the investments based on International Private Equity
Valuation (IPEV) guidelines. This organisation includes a large
number of professional associations, including Invest Europe.
NAV per share is stated net of the amount attributable to the
general partner and to the holders of Class B shares, as well
as the carried interest provisions for the funds in which the
Company invests.
Consolidated net income totalled €129m (
vs.
€111.8m in 2015).
It was comprised principally of all changes in the fair value of
portfolio companies plus valuation differences on divestments
during the period, less management and operating expenses
and provisions for carried interest.
1.4.2
ACTIVITIES OF THE COMPANY
CHANGE IN ASSETS DURING FINANCIAL
YEAR 2016
The figures below include the following funds through which
Altamir invests: Apax France VIII-B, Apax France IX–B, Apax VIII
LP, Apax IX LP, and the two co-investment funds, Phénix and
APIA Vista.
Investments
The Company invested and committed €112.3m during 2016,
vs.
€143.2m in 2015. This amount included:
1)
€82.9m (€130.3m in 2015) in eight new investments:
€9.9m through the Apax VIII LP fund in four newcompanies;
–
€2.9m in Invent Neurax, a pharmaceutical group resulting
fromthemergerofNeuraxpharmArzneimittelinGermanyand
Invent Farma in Spain, two leading generics pharmaceutical
companies in their respective markets,
–
€2.6m in Engineering Ingegneria Informatica SpA, an Italian
IT services company,
–
€2.1m in VyaireMedical, a respiratory solutions business that
is majority owned by Apax, jointly with US group Becton
Dickinson, and
–
€2.3m inDuck Creek Technologies, a business specialising in
innovative software solutions for the insurance industry that
ismajority owned by Apax, jointlywith US groupAccenture;
€61.6m in two new investments through and with the Apax
France IX-B fund;
–
€39.1m, including €26.6m
via
the fund and €12.5m
via
co-
investment, in InfoVista, leading global provider of network
performance software solutions, and
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REGISTRATION DOCUMENT
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ALTAMIR 2016