Altamir : Further increase in NAV and significant portfolio activity in the first half. Diversification strategy enters a new stage

Further increase in NAV and significant portfolio activity

in the first half

Diversification strategy enters a new stage

First half 2021 highlights:

• NAV per share as of 30 June 2021: €32.56, up 8.9% compared with 31
  December 2020 including the dividend
• Robust activity during the half-year period:

1. More than €195m invested and committed, including more than €158m in 10 new companies

• 1. More than €328m in divestment proceeds and revenue
• €90m allocated to Altaroc Global funds over three years to increase portfolio diversification

Paris, 9 September 2021 - Net Asset Value per share stood at €32.56 as of 30 June 2021, after distribution of a dividend of €1.09 per share in May 2021.

Including the dividend, NAV was up 8.9% vs 31 December 2020 (€30.9) and up 7.7% vs 31 March 2021.

1. PERFORMANCE:

Net Asset Value (shareholders' equity, IFRS basis) stood at €1,188.7m (vs €1,128.2m as of 31 December 2020). The change in Net Asset Value during the first half resulted from the following factors:

		Portfolio	Cash	Carried	Other	NAV
	In €m		(Debt)	interest	assets and
				provision	liabilities
	NAV 31/12/2020	1,266.7	(4.9)	(118.9)	(14.6)	1,128.2
	+ Investments	231.2	(231.2)			-
	- Divestments	(320.5)	320.5			-
	+ Interest and other financial		3.9			3.9
	income (including dividends)
	+/- Positive or negative change	170.8	(39.5)	(25.8)		105.5
	in fair value
2021	+/- Currency gains (losses)	9.4				9.4
+/- Purchases and external		(24.3)	0.7	2.9	(20.7)
Half	expenses
- Dividends		(39.7)	2.1		(37.6)
1st
	NAV 30/06/2021	1,357.6	(15.3)	(141.9)	(11.7)	1,188.7

Including a positive currency effect of €9.4m, value creation totalled €140.7m during the first half of 2021.

The increase in the Tech & Telco sector's valuation (up €95.8m), which accounted for a large portion of that value creation, reflected the excellent performance of companies offering communications and SaaS solutions - principally InfoVista (up €45.2m), Graitec (up €23.0m) and Destiny (up €16.3m) - with the exception of Marlink whose valuation was revised down (by €25.6m) so as align it with negotiations underway to sell the company. The Healthcare sector, which represented 8% of the fair value of the portfolio as of 30 June, contributed 19% of the value creation recognised during the first half. This was due in particular to increases in the value of InnovAge (up €8.9m) following its IPO and the very favourable performance of Unilabs (up €8.3m).

2. ACTIVITY:

a) €195.4m invested and committed during the first half (vs €27.7m in H1 2020):

In addition to the direct, €100m investment in THOM Group, €58.4m was invested and committed to nine new companies, including eight acquired via the Apax X LP fund:

• Infogain, a US company based in Silicon Valley, specialised in corporate technology services, with strong expertise in digital transformation (€13.8m committed, transaction not yet finalised as of 30 June),
• PIB Group, an insurance broker based in the United Kingdom with a presence in continental Europe and India (€10.1m invested),
• Rodenstock, a leading eyewear company (lenses and frames) based in Munich
  (€9.0m invested),
• Nulo, a US company specialised in animal nutrition, positioned in the premium segment (€5.3m invested),
• Idealista, the largest online real-estate marketplace in Spain and Italy, sold in 2020 via the Apax VIII LP fund, in which Apax X LP acquired a minority holding alongside the new shareholders (€5.2m invested),
• Lutech, an Italian IT services and solutions provider (€4.6m invested),
• Herjavec Group, a Canadian company specialised in corporate cyber security solutions (€2.9m invested),
• CyberGrants, a US leader in SaaS software aimed at improving the impact of corporate and employee commitment to foundations and not-for-profit entities
  (€2.5m committed as of 30 June - transaction finalised in July).

The ninth investment relates to the Apax MidMarket X fund's acquisition of Belgian company Efficy, a European leader in CRM software (Altamir has invested €5.0m).

In addition, €1.6m was invested in Apax Development, which carried out an acquisition, and €0.6m in Apax Digital, which has announced four new investments.

€34.8m in follow-on investments were carried out on existing portfolio companies, principally:

1. • €19.3m including €10m co-investment in Destiny to finance two transformative acquisitions;
   • €7.7m in InfoVista to finance the acquisition of Empirix (including €2.8m of co- investment);
   • €5.2m to bolster the financial condition of Entoria (including €1.1m of co- investment).
2. €328.5m in divestment proceeds and revenue (vs €24.6m in H1 2020):

In addition to the sale of THOM Group (€104.5m in sale proceeds), two other full sales and one partial sale were closed during the first half via the Apax MidMarket IX fund (ex- Apax France IX):

• Bip was sold to the CVC Capital Partners fund (€96.8m in divestment proceeds, transaction not finalised as of 30 June);
• Sandaya was sold to a fund managed by InfraVia Capital Partners (€45.3m).
• Expereo was partially sold; the fund retains a stake equal to around 30% of the amount of its sale proceeds, alongside the new shareholder, Vitruvian Partners, and the management team (€62.9m).

In addition, Apax Digital sold one of its investments to the SAP group at excellent terms (€1m in sale proceeds for Altamir).

Lastly, €18.0m in sundry revenue was recognised during the first half, deriving principally from the IPO of Genius (€6.1m), the partial sale of ThoughtWorks (€4.4m), the sale of Duck Creek Technologies shares (€2.2m), a dividend distributed by Inmarsat (€1.7m), the sale of TietoEVRY shares (€1.5m), and an adjustment of the amount received on the sale of Boats Group (€1.3m).

3. CASH AND COMMITMENTS:

Altamir's net cash position as of 30 June 2021 on a statutory basis was €91.0m. This amount did not reflect the proceeds from the sale of Bip (€95.5m), which will be received in September.

As a reminder, the net cash position was €42.3m as of 31 March 2021 and €42.4m as of 31 December 2020.

Altamir has lines of credit of €100m, including €70m at the Company level and €30m via the dedicated Astra fund, created in October 2020. This fund centralises virtually all co- investments made by Altamir up to that date.

As of 30 June 2021, maximum outstanding commitments totalled €650.5m (including €129.3m committed but not yet called), which will be invested between now and 2024, principally as follows:

2019 vintage: €599.3m, of which:

• €417.3m in the Apax MidMarket X fund (including €76m corresponding to the additional commitment Altamir made to the fund in Q2 2021);
• €170.3m in the Apax X LP fund (including €20m corresponding to the additional commitment Altamir made to the fund in January 2021);
• €10.0m in the Apax Development fund;
• €1.7m in the Apax Digital fund.

2016 vintage: €27.8m, of which:

• €14.8m in the Apax IX LP fund (including €13.4m in recallable distributions);
• €8.7m in the Apax MidMarket IX fund (ex-Apax France IX);
• €3.8m in distributions recallable by the Apax VIII LP fund.

This amount of €650.5m also included the $15m commitment to the Apax Digital 2 fund, which closed in early June, as well as the €10m co-investment in Destiny.

Altamir benefits from an opt-out clause, under which it can adjust the level of its commitment to the Apax MidMarket X fund by €100m every six months.

4. EVENTS SINCE 30 JUNE 2021

Apax Partners SAS has finalised fundraising for its Apax MidMarket X fund, with total commitments of €1.6bn, well in excess of its initial target of €1.2bn and also greater than the hard cap of €1.5bn. Altamir's commitment to the Apax MidMarket X fund is €426m.

In August 2021, Apax Partners SAS signed an agreement with Providence Equity Partners with a view to a partial sale of Marlink. The transaction is expected to be finalised in the first quarter of 2022.

Baltic Classifieds Group and Paycor, held via the Apax IX LP fund, were floated on the stock exchange in July, and ThoughtWorks filed for an IPO in September.

Apax Partners LLP has announced the acquisition of Every Action and Social Solutions via the X LP fund. These two companies develop software solutions for the non-profit sector. Apax's objective is to combine these two companies with CyberGrants so as to create the world's second-largest provider of SaaS software solutions to the social good ecosystem.

Via the Apax X LP fund, Apax Partners LLP has signed an agreement with a view to acquiring SaveATree, a company specialised in caring for trees, shrubs and lawns and present in 27 US states. Apax Partners LLP has also announced a joint agreement with Warburg Pincus to acquire T-MobileNetherlands, a leading European mobile telephony operator, from Deutsche Telecom and Tele2 Sverige.

Lastly, Apax Digital has announced a new investment and the sale of one of its investments, and Apax Development has announced a new investment. These two funds are now 82% and 55% invested, respectively.

5. STRATEGY DEVELOPMENTS

As a reminder, Altamir invests primarily in or alongside the funds managed or advised by Apax Partners SAS and Apax Partners LLP, two leading private equity firms with more than 45 years of investing experience.

Nevertheless, as announced at the time of the takeover by Amboise in 2018, Altamir's investment policy might slightly be altered in order to increase its exposure to promising markets such as North America and Asia or to seize investment opportunities whose duration exceeds the customary time period (7-10 years) of private equity funds.

The direct investment in THOM Group, announced on 25 January 2021, constituted the first example of this new strategic orientation.

With an eye to expanding its exposure to North America and the rest of the world, in particular Asia, Altamir has decided to allocate €90m over the next three years (approx. €30m/year) to a series of funds named "Altaroc Global" plus the vintage year. This project is the brainchild of Frédéric Stolar, recently recruited as Managing Partner by Amboise Partners SA, Altamir's investment adviser.

Altaroc Global's strategy is to offer retail investors the best of global private equity. Each vintage will invest 80% of its assets in 4-6top-rankingworld-class funds and 20% in direct co-investments alongside the funds.

By investing via the Altaroc Global funds, Altamir will be able to access the world's most renowned fund managers, who demand high minimum commitments. Moreover, Altamir will be able to accompany them over the long term and build lasting relationships with them.

Altaroc Global 2021

The Altaroc Global 2021 fund aims to collect €110m, including €30m committed by Altamir and €80m deriving from retail investors.

The fund will be invested as follows:

• €50m in the Apax MidMarket X and Apax X LP funds;
• €40m ($50m) in two funds managed by General Atlantic and Insight Partners, two
  US-based private equity firms with a global investment strategy that invest exclusively in buy-out and growth transactions, in the same sectors as Apax.
• €20m in co-investments.

To accelerate the launch of the fund, Altamir has made commitments on behalf of the Altaroc Global 2021 fund and is temporarily carrying them (€96m) on its balance sheet.