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Valuation and Multiples

Valuation policy

Portfolio companies, both directly and indirectly held, are valued by the Funds’ investment managers, reviewed by he Funds’ auditors, and agreed upon by the Board of Advisers of the Funds.

Altamir’s policy is to follow the valuations made by the Fund’s investment managers.

Before their final acceptance, these valuations are reviewed by the management of Altamir Gérance, by Altamir’s auditors, and by the Audit Committee of Altamir’s Supervisory Board and by the Supervisory Board in general.

Valuation methodology

The Apax fund management companies value their portfolios based on the principles of fair value, in accordance with International Private Equity Valuation (IPEV) recommendations.

The Apax fund managers have always pursued a conservative valuation policy, as can be seen in the uplift historically generated from divestments (selling price higher than the valuation made before the divestiture).

Unlisted companies are valued every half-year, and listed companies every quarter.

For unlisted invested companies held for more than one year:For unlisted invested companies held for less than one year:For listed companies:
Valuation generally based on a sample of peer-group multiples (listed companies and recent transactions). Apax Partners SAS values companies at cost, except under specific circumstances. Valued at the last listed price of the period, except in the event of restriction in tradability or other exceptional circumstances.
Apax Partners SAS may apply a downward adjustment* of up to 20%. Apax Partners LLP usually values growth capital investments close to cost; buyout investments may be revalued from the first day they are held.
Apax Partners LLP does not make any adjustments, since it invests in larger companies.
* This downward adjustment corresponds to a liquidity adjustment of 0 to 20 % based on performance quality, the position of Apax Partners/Altamir in the capital (minority vs majority, exit rights, etc.), the level of mergers/acquisitions in the sector, Management influence and weight of management at exit, and the liquidity of comparable companies. 

Enterprise value / LTM EBITDA

Sample of 31 companies as of 30/06/2019

Valuation multiples

Excluding financial companies, companies being divested and companies where EBITDA is not relevant.

Net debt / LTM EBITDA

Sample of 38 companies as of 30/06/2019

Debt multiples

Excluding financial companies and companies being divested.