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FINANCIAL AND LEGAL INFORMATION
1
Risk factors
Nature of the risk
Risk mitigation
2) Risks related to the absence of investment liquidity
Altamir aims to invest principally in unlisted companies, with
a medium- to long-term investment horizon. Although the
investments Altamir makes can occasionally generate recurring
revenue, in the vast majority of cases, capital invested and potential
capital gains are only realised when the investment is partially
or fully sold, which generally only takes place several years after
its acquisition.
There is no guarantee that the companies in which Altamir has
invested or will invest, either directly or via the Apax France
VIII, Apax France IX, Apax VIII LP and Apax IX LP funds, will be
listed on the stock exchange or sold. Under these circumstances,
Altamir may have difficulty selling its investments in a reasonable
timeframe and at satisfactory pricing terms. Such a situation may
restrict or prevent Altamir frommaking new investments and
hinder the implementation of the investment strategy.
Furthermore, in certain cases, Altamir may require prior
authorisation of a sale from the competent authorities, or may
be prohibited by contract, law or regulations, from selling an
investment during a given period.
The portfolio’s sectoral and geographical diversification minimises
the risk of illiquidity in the portfolio.
The investment processes implemented by the Apax fund
management companies (see Section 1.3.7) include an analysis of
exit scenarios for each potential investment.
Moreover, Altamir’s portfolio is well diversified in terms of
acquisition dates, which facilitates a harmonious rotation of the
portfolio.
3) Risks related to Altamir’s investment capacity
Altamir’s success essentially depends on the capacity of the
Apax management companies (Apax Partners SA, Apax Partners
MidMarket and Apax Partners LLP) to identify, select, acquire and
sell, in a competitive market, investments that are likely to generate
significant capital gains.
There is an increasing number of private equity companies, and for
larger
transactions
, the market tends to be global, thus becoming
fiercely competitive. Some of these companies have a greater
financial capacity than the funds managed by the Apax Partners
management companies, giving them a competitive advantage
for undertaking significant financial transactions. Others may
have lower ROI requirements than those of the Apax Partners
management companies, enabling them to offer a higher price
to sellers for a given asset.
Quality, team size and Apax’s strong reputation represent
significant competitive advantages.
Owing to the sectoral specialisation of Altamir and the Apax funds,
it is often easier to identify opportunities at the outset (proprietary
deals) and avoid highly competitive auction processes.
By investing via funds managed by Apax Partners MidMarket and
Apax Partners LLP, Altamir has the ability to invest worldwide,
which significantly increases potential opportunities.
Altamir cannot guarantee that the Apax management companies
will continue to be in a position to, or want to, study certain
investment opportunities, nor can it guarantee that any acquisition
proposals put together by the management companies will be
accepted by the sellers.
Altamir may co-invest alongside Apax funds when the funds
syndicate these opportunities to their investors.
4) Risks related to investment in funds managed by Apax Partners MidMarket and Apax Partners LLP
The rules governing the Apax Funds:
limit the life of the funds;
limit the period during which they can invest;
might lead to an early liquidation of the funds in certain
scenarios;
might lead to an early termination of the investment period
of these funds;
might lead to the management company being dismissed
(in the event of serious misconduct)
The Apax France VIII and Apax VIII LP funds were both fully
invested as of 31 December 2016.
The Apax France IX and Apax IX LP funds are in the early stage
of their investment period and have invested 23% and 2%,
respectively, of the subscribed amounts.
In such a scenario, Altamir may no longer be in a position to invest.
The management company of Altamir is completely independent
from the two management companies. As such, Altamir is free to
invest with other partners.
The Company cannot exclude the possibility that it might not
be able to invest the full amounts subscribed in these funds.
The historical relationship and the significant amounts invested
by Altamir make such a scenario unlikely.
It cannot be guaranteed that Altamir will be authorised to invest
in the following funds.
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REGISTRATION DOCUMENT
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ALTAMIR 2016