Financial Results, Dividend Payment, and Balance Sheet

  • The Group’s FY 2023 net revenues were down 23.4% YoY, amounting to €177.8mn.
    • In Asset Management, revenues increased by 13.5% YoY, reaching €38.2mn. In a tough fundraising environment, attributed to unfavorable macroeconomic conditions, private equity fundraising plunged to a six-year low in 2023[1]. Nonetheless, Alantra’s Asset Management business raised €550mn and secured performance fees across some of its funds.
    • The decline in Group revenues stems from Alantra’s advisory business: Investment Banking revenues fell to €104.6mn (-27.0% YoY) and FIG[2] revenues, formerly called Credit Portfolio Advisory, to €34.0mn (-37.3%).
      The decrease in advisory business revenues reflects the downturn in global M&A activity, particularly in the mid-market, which was profoundly impacted by a sharp increase in the cost of capital due to high inflation and increased interest rates, causing volumes to plummet by 32% in Europe YoY and globally by almost 50% from the record high seen in 2021[3]. Additionally, the global IPO market also remained sluggish throughout 2023, with a nearly 16% drop YoY and a decline of over 40% since 2021[4].
  • In 2023, operating expenses decreased by 5.5% to €177.6mn, including a 29.8% YoY decrease in performance-related variable retribution. Notably, Alantra incurred one-off costs of c. €7.7mn associated with the company’s strategic transformation and efficiency measures the impact of which will materialize in 2024.
  • FY 2023 net profit attributable to the parent company stood at €5.1mn (-87.4% YoY), of which €4.0mn corresponded to the fee business, €0.9mn to the portfolio, and €0.1mn to other businesses.
    Looking at segments, Asset Management emerged as the primary net profit contributor, nearly matching its 2022 performance, while Investment Banking experienced a significant decline in profit contribution.
  • The Board of Directors is proposing the distribution of a dividend of €3.0mn (€0.08 per share) to be approved by the Annual General Meeting and to be paid in May. The dividend represents c. 60% of FY 2023 attributable net profit.
  • As of 31 December 2023, Alantra’s financial position remained strong, with a net treasury position of €97.1mn[5], following the deduction of the upcoming variable retribution pay-out of €30.9mn and the proposed €3.0mn dividend. Alantra also holds €36.6mn in attributable portfolio of investments in products managed by the Group and has no financial leverage.

The Group will continue to invest its cash resources in its transformation and growth projects. This strategic shift should improve Alantra’s offering once the market reopens and have a positive impact on the P&L in the medium term.

Strategic transformation and business milestones

  • In 2023, Alantra initiated a process of reorganization and strategic transformation through various measures aimed at promoting greater integration and efficiency in its businesses. These measures included:
  • An extensive reorganization of its Investment Banking business, which involved the departure of 33 and the hire of 21 senior executives to reposition the business for the new M&A cycle.
    These changes bolstered Alantra’s offices in London, Madrid, New York, Frankfurt, Zurich, and Dubai, as well as the Firm’s Technology, Industrial, Food, and Energy Transition sector teams. Additionally, the Investment Banking headquarters have been relocated to London
  • In Asset Management, Alantra raised more than €550mn in 2023 across different funds and continued to scale strategies. Some highlights included the following:
    • Alantra forging a strategic partnership with private investor Ion Ion to enhance its pan-European Private Debt platform, launching a Credit Opportunities strategy and Real Estate Debt Fund II, and reaching the first close of Alteralia III and, in January 2024, Indigo III.
    • Alantra Solar reaching €315mn in equity commitments in its 1.8 GW photovoltaic investment platform.
  • Alantra developed its Energy Transition and Technology cross-divisional areas by adding a specialized energy transition advisory services team and developing its Corporate Venture Capital and Data Analytics offering.

[1] Source: Private equity fundraising plunges to 6-year low in 2023

[2] The CPA business has been renamed to FIG due to an expansion of the division’s service offering

[3] Source: Dealmakers see rebound after global M&A volumes hit decade-low | Reuters

[4] Source: S&P Global Market Intelligence : Worldwide IPO activity marks slow end to 2023

[5] €131.0mn (103.9m of cash and cash equivalents and €27.1m invested in a monetary fund included under non-current financial assets) deducting variable retribution and dividends payments

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