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FINANCIAL AND LEGAL INFORMATION
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Risk factors
1.5.1
INTRODUCTION − PRINCIPLES
Investors are asked to consider all the information provided
in the present Registration Document before acquiring or
subscribing to the Company’s marketable securities. As of the
date this Registration Document was filed, these risks, were they
to materialise, could have a significant unfavourable impact on
the Company, its business activities, its financial position, its
results or its growth. TheCompany considers that, at the time this
Registration Document was filed, there were no significant risks
other than those presented. Investors should be aware that the
list of risks below is not exhaustive, and that theremay have been
other unidentifiedor unforeseen risks at the date this Registration
Document was filed, which may have a significant adverse risk
on the Company, its business activities, financial position, results
and growth.
The unitholders in the private equity funds managed by Apax
Partners SA, ApaxPartnersMidMarket SASandApaxPartners LLP
are professionals investing significant amounts with a long-term
investment horizon. They have more detailed information about
the investments acquired (as co-investments alongside Altamir)
than the other shareholders of the Company. This information
is communicated to them in line with the rules of the funds and
with common practice in the private equity industry. Should this
information be privileged, however, as defined by applicable
regulations, these investors must not carry out transactions on
the shares of Altamir.
1.5.2
DESCRIPTION OF RISKS
AND UNCERTAINTIES AND
THEIR MANAGEMENT
A) RISKS INHERENT IN PRIVATE EQUITY
Investment in a company whose objective is to acquire private
equity interests is intrinsically high-risk, greater than that
associated with investing in listed major industrial, property or
financial companies.
There is no guarantee that the investments will achieve Altamir’s
objectives, or even return the capital invested in the Company,
and thepast performanceof the fundsmanagedbyApaxPartners
for this type of investment offers no guarantee of the future
performance of the Company.
In particular, private equity investments present the following risks:
Nature of the risk
Risk mitigation
1) Risks relating to capital calls (liquidity risks)
The Company has commitments to the funds in which it invests
(Apax France VIII-B, Apax France IX-B, Apax VIII LP and Apax
IX LP). These commitments are significant and could be called at
any time with a notice period of around 10 days.
The resources for meeting these commitments are held in available
cash, proceeds from divestments and possibly temporary lines of
credit.
The Company’s status as a French société de capital risque (SCR)
prohibits it from borrowing in excess of 10% of statutory net assets.
The Company’s commitments to the Apax France and Apax
Partners LLP funds have been set within a range enabling it
to respond to capital calls based on expected cash positions.
The Company has carried out a specific review of its liquidity
risk and believes it can meet its forthcoming obligations.
Every fund in which Altamir invests has access to credit lines
and is thus not required to make capital calls in real time for each
investment. This enables the Company to increase its visibility
on future capital calls.
As of 31 December 2016, the Company’s net cash position
was
€
67.4m and its authorised lines of credit (
€
39m) had not
been drawn down. The Company is currently renegotiating
with its banking pool to increase the amount of its credit lines.
In June 2015, Altamir ceased to be tied to Apax Partners for
managing its investment in Albioma and may now freely manage
its shares in this listed company.
Furthermore, Altamir has the option to reduce the maximum
level of its commitment to the Apax France IX-B fund by up to
€
80m. Maximum commitments are reviewed semi-annually.
This mechanism gives Altamir the flexibility to significantly lower
its commitments for each six-month period.
1.5
RISK FACTORS
67
REGISTRATION DOCUMENT
1
ALTAMIR 2016