Apax Global Alpha Ltd on Thursday reported a decline in its net asset value, amid ‘weaker valuation multiples’ in its listed investees.

The investment firm, which backs technology, services, healthcare, internet and consumer-focused firms, said its net asset value at the end of 2022 was £2.34 per share. It fell 8.2% from £2.55 at the end of 2021.

The stock traded 1.1% lower at 184.48 pence each in London on Thursday morning.

‘Portfolio company operating performance was not enough to fully offset weaker valuation multiples, in particular, in the Apax funds’ listed holdings,’ Chair Tim Breedon said.

Its total return was negative 7.4% last year, well off the 29% return it achieved in 2021.

Apax added: ‘2022 saw a fundamental change in global economic conditions. The conflict in Ukraine compounded existing supply chain disruption, and triggered a sharp upward movement in energy prices. In the face of escalating inflationary pressures and tight labour markets, central banks began to raise interest rates aggressively, with the federal funds rate rising from 0.0-0.25% to 4.25-4.5% during the course of the year, bringing the era of ’cheap money’ to an abrupt end.’

It lowered its final dividend by 8.5% to 5.82 pence per share from 6.36p a year ago, reducing its yearly dividend by 4.1% to 11.82 pence from 12.33p.

Breedon added: ‘Whilst no investment strategy can be totally immune to the current macroeconomic headwinds, we believe that the Apax Funds have the right investment approach for the current market conditions.’

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