ALTAMIR_REGISTRATION_DOCUMENT_2017

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PRESENTATION OF THE COMPANY AND ITS ACTIVITIES

Business description

Occasionally, in co-investment alongside these funds When an investment identified by Apax Partners for its funds requires a capital investment exceeding an amount that the funds wish to commit out of their own capital, the funds’ investors are inmost cases invited to co-invest in the newportfolio companies, should they wish to. In the interest of optimising its treasury management, Altamir has informed the two management companies, Apax Partners SAS and Apax Partners LLP, of its interest inparticipating in co-investment transactions. The first co- investment of this kindwasmade inDecember 2013whenAltamir co-investedalongsideApaxFranceVIII inSnacksDéveloppement. Two additional co-investments were made in 2016, in Marlink and InfoVista, and two more in 2017, in CIPRÉS Assurances and ThoughtWorks. 1.3.4 ALTAMIR’S CASH MANAGEMENT AND PERFORMANCE OPTIMISATION STRATEGY One of the key challenges for a listed private equity Company is managing its cash. Unlike private equity funds, where the responsibility for cashmanagement is left to the subscribers (each new investment is financedby a call for funds fromthe unitholders and divestment proceeds are distributed immediately), listed companies finance new investments through their available cash, which is generated by divestments. A listed private equity Company needs to avoid two pitfalls in its cash management: firstly, having too much cash, which could hamper its performance; and secondly, not being able to meet subscription commitments for the funds in which it has invested, which could result in the Company incurring heavy penalties or being required to seek external funds at unfavourable terms. Borrowing is one potential solution to this problem. Altamir believes that this strategy introduces a significant risk factor. In addition, its SCR ( société de capital risque ) tax status limits its potential to take on debt to 10% of its statutory net book value (€60m at year-end 2017). Rather, Altamir’s financial strategy is to set up credit lines for the maximum amount allowed under tax regulations, but to only draw on these credit lines to meet potential timing differences arising between the receipt of divestment proceeds and investment payments. CASH MANAGEMENT STRATEGY

ALTAMIR’S PERFORMANCE OPTIMISATION STRATEGY

The Management Company considers that two conditions need to be met to optimise Altamir’s long-term performance: „ the ratio of the amount invested at cost/statutory net book value should be as close as possible to 100%; „ investment quality should conform to the Company’s risk/ return investment strategy. To achieve these objectives, every three to four years, when new Apax funds are launched, the Board of Directors of the Management Company and the Supervisory Board prepare a forecast of expected divestments for the next three to four years in order to determine the total amount that can be invested, taking into account requirements related to management costs and dividend policy. In 2015/16, the Boards approved the Management Company’s recommendation to invest around €500m over the period 2016- 19, allocated as follows: „ €306m to the Apax France IX-B fund; „ €138m to the Apax IX LP fund; „ €62m to co-investments. This €500m investment does not imply that the credit lines will be used. The divestment forecasts are clearly uncertain, while the subscription commitments in the funds are irrevocable and give rise to significant penalties if the commitments are not met. However, the Management Company can use three mechanisms to deal with these uncertainties: „ if divestment volumes are insufficient: „ it can use available credit lines, „ it can decide not to use the sumavailable for co-investments, „ it can reduce the commitmentmade to theApax France IX-B fund from €306m to €226m; Introducing co-investments into Altamir’s investment strategy gives the Company additional upward and downward flexibility to achieve its objective of being invested at 100% of its statutory net book value. In addition, the co-investments alongside the Apax funds do not bear the management fees and carried interest for these funds. Instead, they form part of the management fees and carried interest due to Altamir Gérance and to Class B shareholders. „ if there is an excess of divestment volumes: „ it can increase the volume of co-investments;

50 REGISTRATION DOCUMENT

• ALTAMIR 2017

www.altamir.fr