ICG Enterprise Trust Plc : Statement re Quarterly Update for the Quarter to 30 April 2018
Quarterly Update
For the three months to 30 April 2018
Highlights
- NAV per share of 970p; a total return of 1.6% over the quarter
- Continued strong exit activity; realisations at significant uplifts to carrying value and cost
- £64.6m of new commitments and selective deployment into compelling investment opportunities
- Quarterly dividend of 5.0p declared - to be paid in September 2018
- NAV and share price continue to outperform FTSE All-Share over one, three, five and 10 years
Realisations and IPOs the key driver of growth
- Investment portfolio valued at £611.8m[1], 91.1% of net assets
- 2.3% return for the quarter; 1.7% on a constant currency basis
- Portfolio continues to be highly cash generative
- 16 full realisations in the quarter; £25.2m of realisation proceeds
- Realisations at a 31% uplift[2] to carrying value; 2.2x multiple of cost
- Continued exit activity since the quarter end
- A further £24.2m of proceeds received in May 2018
- £10.7m from the sale of The Laine Pub Company; a 2.0x multiple to cost
- Year to date, realisations continue to outweigh new investments[3]
New commitments and selective investment into compelling opportunities
- £64.6m of new primary commitments
- €40m (£34.6m) to ICG Europe Fund VII
- Flexible strategy targeting gross annualised returns of 15-20% with low downside risk
- Investing in European companies with experienced management, typically in non-cyclical industries
- £30m to Graphite IX
- Focus on mid-market buyouts in the UK
- Companies valued at between £30 million and £150 million
- £22.3m of new investment - 47% deployed into high conviction investments
- Focus remains on defensive growth, structural downside protection and relative value
- High conviction investments (ICG directly controlled investments, third-party co-investments and secondary investments) increased to 43% of investment portfolio
- £7.1m co-investment completed in Endeavor Schools, a school operator based in the USA, alongside Leeds Equity Partners
- Defensive business with strong underlying growth trends and stable cash flows
- £5.1m invested since the quarter end
- Strong pipeline of co-investments and new funds
Dividend
- Final dividend of 6p to be paid on 13 July 2018[4]
- Quarterly dividend of 5.0p declared
- Will be paid on 7 September 2018 for shareholders on the register on 17 August 2018
Strong balance sheet
- Closing net asset value of £672m
- Cash balance of £74.8m at 30 April 2018
- Uncalled commitments of £376.3m
- £179.0m total liquidity (including £104.2m undrawn bank line)
Consistent strong performance
The performance of the Company remains strong over the short, medium and long term, with the NAV and share price outperforming the FTSE All-Share Index over one, three, five and 10 years.
| Performance to 30 April 2018 | 3 months | 1 year | 3 years | 5 years | 10* years | |
| Net asset value per share | +1.6% | +13.7% | +49.8% | +69.5% | +108.5% | |
| Share price | +5.0% | +19.4% | +62.1% | +97.2% | +134.6% | |
| FTSE All-Share Index | +1.1% | +8.2% | +22.5% | +45.6% | +102.8% | |
* As the Company changed its year end in 2010, the ten-year figures are for the 121 month period to 30 April 2018. Emma Osborne, Head of Private Equity Fund Investments, ICG, commented:"The portfolio continues to perform well, and we are pleased with the progress made in a quarter in which managers tend not to revalue the unrealised investments significantly. The portfolio remains highly cash generative as our managers continue to take advantage of the strong exit environment to sell portfolio companies. Against this, we are redeploying capital selectively into high quality defensive businesses and in special situations where we can achieve relative value. We have a strong pipeline of new opportunities and the portfolio is well positioned to continue to generate shareholder value." EnquiriesAnalyst / Investor enquiries: +44 (0) 20 3201 7700Emma Osborne, Head of Private Equity Fund Investments, ICGNikki Edgar, Finance and Investor Relations, ICG Media: Helen Gustard, Co-Head of Corporate Communications, ICG +44 (0) 20 3201 7917 Alicia Wyllie, Co-Head of Corporate Communications, ICG Vikki Kosmalska, Associate Partner, Maitland +44 (0) 20 7379 5151 DisclaimerThis report may contain forward looking statements. These statements have been made by the Directors in good faith based on the information available to them up to the time of their approval of this report and should be treated with caution due to the inherent uncertainties, including both economic and business risk factors, underlying such forward-looking information. These written materials are not an offer of securities for sale in the United States. Securities may not be offered or sold in the United States absent registration under the US Securities Act of 1933, as amended, or an exemption therefrom. The issuer has not and does not intend to register any securities under the US Securities Act of 1933, as amended, and does not intend to offer any securities to the public in the United States. No money, securities or other consideration from any person inside the United States is being solicited and, if sent in response to the information contained in these written materials, will not be accepted. This report contains information which, prior to this announcement, was inside information. | ||||||
Supplementary information
The 30 largest underlying investments
The table below presents the 30 companies in which ICG Enterprise had the largest investments by value at 30 April 2018. These investments may be held directly or through funds, or in some cases in both ways. The valuations are gross and are shown as a percentage of the total investment Portfolio.
| Company | Manager | Year of investment | Country | Value as a % of Portfolio | |
| 1 | City & County Healthcare Group | ||||
| Provider of home care services | Graphite Capital | 2013 | UK | 3.4% | |
| 2 | DomusVi+ | ||||
| Operator of retirement homes | ICG | 2017 | France | 2.9% | |
| 3 | Visma+ | ||||
| Provider of accounting software and accounting outsourcing services | ICG & Cinven | 2014 & 2017 | Europe | 2.5% | |
| 4 | David Lloyd Leisure+ | ||||
| Operator of premium health clubs | TDR Capital | 2013 | UK | 2.3% | |
| 5 | Education Personnel+^ | ||||
| Provider of temporary staff for the education sector | ICG | 2014 | UK | 2.2% | |
| 6 | Roompot+ | ||||
| Operator and developer of holiday parks | PAI Partners | 2016 | Netherlands | 2.0% | |
| 7 | nGAGE | ||||
| Provider of recruitment services | Graphite Capital | 2014 | UK | 2.0% | |
| 8 | Gerflor^ | ||||
| Manufacturer of vinyl flooring | ICG | 2011 | France | 2.0% | |
| 9 | PetSmart+ | ||||
| Retailer of pet products and services | BC Partners | 2015 | USA | 1.8% | |
| 10 | Ceridian+ | ||||
| Provider of payment processing services | Thomas H Lee Partners | 2007 | USA | 1.8% | |
| 11 | The Laine Pub Company+ | ||||
| Operator of pubs and bars | Graphite Capital | 2014 | UK | 1.8% | |
| 12 | ICR Group | ||||
| Provider of repair and maintenance services to the energy industry | Graphite Capital | 2014 | UK | 1.7% | |
| 13 | Froneri+^ | ||||
| Manufacturer and distributor of ice cream products | PAI Partners | 2013 | UK | 1.6% | |
| 14 | Cambium^ | ||||
| Provider of educational solutions and services | ICG | 2016 | USA | 1.6% | |
| 15 | System One+ | ||||
| Provider of specialty workforce solutions | Thomas H Lee Partners | 2016 | USA | 1.6% | |
| Company | Manager | Year of investment | Country | Value as a % of Portfolio | |
| 16 | Beck & Pollitzer | ||||
| Provider of industrial machinery installation and relocation | Graphite Capital | 2016 | UK | 1.6% | |
| 17 | Skillsoft+ | ||||
| Provider of off the shelf e-learning content | Charterhouse | 2014 | USA | 1.5% | |
| 18 | Frontier Medical+ | ||||
| Manufacturer of medical devices | Kester Capital | 2013 | UK | 1.5% | |
| 19 | TMF^ | ||||
| Provider of management and accounting outsourcing services | Doughty Hanson | 2008 | Netherlands | 1.5% | |
| 20 | Yudo+ | ||||
| Designer and manufacturer of hot runner systems | ICG | 2018 | South Korea | 1.4% | |
| 21 | Endeavor Schools+ | ||||
| Operator of schools | Leeds Equity Partners | 2018 | USA | 1.2% | |
| 22 | YSC | ||||
| Provider of leadership consulting and management assessment services | Graphite Capital | 2017 | UK | 1.1% | |
| 23 | Swiss Education+ | ||||
| Provider of hospitality training | Invision Capital | 2015 | Switzerland | 1.1% | |
| 24 | New World Trading Company | ||||
| Operator of distinctive pub restaurants | Graphite Capital | 2016 | UK | 1.1% | |
| 25 | U-POL^ | ||||
| Manufacturer and distributor of automotive refinishing products | Graphite Capital | 2010 | UK | 1.0% | |
| 26 | Cognito+ | ||||
| Supplier of communications equipment, software & services | Graphite Capital | 2002 | UK | 0.9% | |
| 27 | Compass Community | ||||
| Provider of fostering services and children residential care | Graphite Capital | 2017 | UK | 0.9% | |
| 28 | Random42 | ||||
| Provider of high-quality medical animation and digital media services to the healthcare and pharmaceutical industry | Graphite Capital | 2017 | UK | 0.8% | |
| 29 | Intervias | ||||
| Operator of petrol station forecourts | TDR Capital | 2014 | UK | 0.7% | |
| 30 | Odgers+ | ||||
| Provider of recruitment services | Graphite Capital | 2009 | UK | 0.6% | |
| Total of the 30 largest underlying investments | 48.1% | ||||
| + All or part of this investment is held directly as a co-investment or other direct investment. | |||||
| ^ All or part of this investment was acquired as part of a secondary purchase. | |||||
The 30 largest fund investments
The 30 largest funds by value 30 April 2018 are:
| Fund | Year of commitment | Country/ region | Value £m | Outstanding commitment £m | |
| 1 | Graphite Capital Partners VIII * | ||||
| Mid-market buy-outs | 2013 | UK | 74.3 | 26.6 | |
| 2 | ICG Europe VI ** | ||||
| Mezzanine and equity in mid-market buy-outs | 2015 | Europe | 24.0 | 2.3 | |
| 3 | BC European Capital IX ** | ||||
| Large buy-outs | 2011 | Europe/USA | 19.5 | 0.8 | |
| 4 | CVC European Equity Partners VI | ||||
| Large buy-outs | 2013 | Europe/USA | 14.9 | 2.2 | |
| 5 | CVC European Equity Partners V ** | ||||
| Large buy-outs | 2008 | Europe/USA | 12.8 | 0.4 | |
| 6 | Graphite Capital Partners VII * / ** | ||||
| Mid-market buy-outs | 2007 | UK | 12.6 | 4.7 | |
| 7 | One Equity Partners VI | ||||
| Mid-market buy-outs | 2016 | USA/Western Europe | 12.3 | 1.0 | |
| 8 | Fifth Cinven Fund | ||||
| Large buy-outs | 2012 | Europe | 12.1 | 1.2 | |
| 9 | Thomas H Lee Equity Fund VII | ||||
| Mid-market and large buy-outs | 2015 | USA | 12.0 | 4.5 | |
| 10 | ICG Strategic Secondaries Fund II | ||||
| Secondary fund restructurings | 2016 | Europe/USA | 11.2 | 18.8 | |
| 11 | ICG Velocity Partners Co-Investor ** | ||||
| Mid-market buy-outs | 2016 | USA | 10.7 | 1.0 | |
| 12 | Permira V | ||||
| Large buy-outs | 2013 | Europe/USA | 10.1 | 0.6 | |
| 13 | Activa Capital Fund III | ||||
| Mid-market buy-outs | 2013 | France | 10.1 | 3.8 | |
| 14 | TDR Capital III | ||||
| Mid-market and large buy-outs | 2013 | Europe | 9.6 | 3.1 | |
| 15 | PAI Europe VI | ||||
| Mid-market and large buy-outs | 2013 | Europe | 9.5 | 6.7 | |
| 16 | Nordic Capital Partners VIII | ||||
| Mid-market and large buy-outs | 2013 | Europe | 9.2 | 1.6 | |
| 17 | Thomas H Lee Parallel Fund VI | ||||
| Large buy-outs | 2007 | USA | 8.7 | 1.0 | |
| 18 | Doughty Hanson & Co V ** | ||||
| Mid-market and large buy-outs | 2006 | Europe | 8.7 | 6.7 | |
| 19 | IK VII | ||||
| Mid-market buy-outs | 2013 | Europe | 8.3 | 0.4 | |
| 20 | Hollyport Secondary Opportunities V | ||||
| Tail-end secondary portfolios | 2015 | Europe/USA | 8.1 | 2.3 | |
| Fund | Year of commitment | Country/ region | Value £m | Outstanding commitment £m | |
| 21 | ICG Europe V ** | ||||
| Mezzanine and equity in mid-market buy-outs | 2012 | Europe | 7.9 | 0.8 | |
| 22 | Deutsche Beteiligungs Fund VI | ||||
| Mid-market buy-outs | 2012 | Germany | 7.4 | 1.2 | |
| 23 | Bowmark Capital Partners IV | ||||
| Mid-market buy-outs | 2007 | UK | 6.8 | 0 | |
| 24 | Egeria Private Equity Fund IV | ||||
| Mid-market buy-outs | 2012 | Netherlands | 6.6 | 1.6 | |
| 25 | Graphite Capital Partners VI ** | ||||
| Mid-market buy-outs | 2003 | UK | 6.3 | 0.0 | |
| 26 | ICG European Fund 2006 B** | ||||
| Mezzanine and equity in mid-market buy-outs | 2014 | Europe | 6.2 | 2.1 | |
| 27 | Advent Global Private Equity VIII | ||||
| Large buy-outs | 2016 | Europe/USA | 6.1 | 6.7 | |
| 28 | ICG Asia Pacific Fund III | ||||
| Mezzanine | 2016 | Asia Pacific | 6.1 | 5.6 | |
| 29 | Gridiron Capital Fund III | ||||
| Mid-market buy-outs | 2016 | North America | 5.9 | 5.6 | |
| 30 | Activa Capital Fund II | ||||
| Mid-market buy-outs | 2007 | France | 5.0 | 1.9 | |
| Total of the largest 30 fund investments | 363.0 | 115.2 | |||
| Percentage of total investment Portfolio | 59.3% | ||||
| * Includes the associated Top Up funds. | |||||
| ** All or part of an interest acquired through a secondary fund purchase. | |||||
Portfolio analysis1
| Investment category | % of portfolio |
| High conviction portfolio ICG | 18.1% |
| Third party co-investments | 19.1% |
| Third party secondary investments | 6.0% |
| Total High Conviction investments | 43.2% |
| Third party funds' portfolio Graphite Capital primary funds | 14.6% |
| Third party primary funds Total diversified fund investments | 42.2% 56.8% |
| Total | 100.0% |
| Portfolio by investment type | % of value of underlying investments | ||||
| Large buyouts | 42.4% | ||||
| Mid-market buyouts | 48.1% | ||||
| Small buyouts | 7.9% | ||||
| Other | 1.6% | ||||
| Total | 100.0% | ||||
| Portfolio by calendar year of investment | % of value of underlying investments | ||||
| 2018 | 4.8% | ||||
| 2017 | 19.5% | ||||
| 2016 | 20.5% | ||||
| 2015 | 12.3% | ||||
| 2014 | 17.1% | ||||
| 2013 | 11.8% | ||||
| 2012 | 3.1% | ||||
| 2011 | 2.0% | ||||
| 2010 | 2.1% | ||||
| 2009 | 1.2% | ||||
| 2008 | 1.8% | ||||
| 2007 | 2.0% | ||||
| 2006 and before | 1.8% | ||||
| Total | 100.0% | ||||
| Portfolio by sector | % of value of underlying investments | |
| Healthcare and education | 21.8% | |
| Industrials | 16.7% | |
| Business services | 15.9% | |
| Consumer goods and services | 15.2% | |
| Leisure | 12.6% | |
| TMT | 10.2% | |
| Financials | 4.9% | |
| Other | 2.7% | |
| Total | 100.0% |
| Portfolio by geographic distribution based on location of Company headquarters | % of value of underlying investments | |
| UK | 35.3% | |
| North America | 23.0% | |
| Europe | 38.7% | |
| Rest of world | 3.0% | |
| Total | 100.0% |
Footnote
- All balance sheet data is presented on a look-through basis to the investment portfolio held by the Company, which is consistent with the commentary in previous annual and interim reports.
Balance sheet information
The summary balance sheet at 30 April 2018 is set out below.
| 30 April 2018 | % of net assets | 31 January 2018 | % of net assets | |
| £m | £m | |||
| Total portfolio | 611.8 | 91.1% | 600.7 | 90.4% |
| Cash and liquid assets | 74.8 | 11.1% | 78.4 | 11.8% |
| Other net current liabilities | (14.8) | (2.2%) | (14.8) | (2.2)% |
| Net assets | 671.8 | 100.0% | 664.3 | 100.0% |
| Movement in liquid assets | |
| £m | 3 months 30 April 18 |
| Additions2 | (22.9) |
| Cash proceeds generated by the portfolio (including income) | 25.2 |
| Net cash generated by the investment portfolio | 2.3 |
| Non-investment cash flows | (2.6) |
| Effect of changes in foreign exchange rates | 0.2 |
| Cash inflow before shareholder distributions | (0.1) |
| Dividends paid to shareholders | (3.5) |
| Net cash movement | (3.6) |
| Opening cash and liquid assets | 78.4 |
| Closing cash and liquid assets | 74.8 |
Footnote
- Additions cash figure for quarter to 30 April includes £0.6m of drawdowns paid which were accrued at the prior quarter end.
| Uncalled commitment coverage | ||
| 30 April 2018 | 31 January 2018 | |
| £m | £m | |
| Cash and liquid assets | 74.8 | 78.4 |
| Undrawn bank facility | 104.2 | 104.0 |
| Total liquidity | 179.0 | 182.4 |
| Outstanding commitments | 376.3 | 321.2 |
| Less: Total liquidity | (179.0) | (182.4) |
| Over-commitment | 197.3 | 138.8 |
| Over-commitment as % of net assets | 29.4% | 20.9% |
[1] 49% of the Portfolio is valued using 31 March 2018 (or later) valuations.
[2] Uplift figure excludes publically listed companies that were exited via sell downs of their shares
[3] At 31 May 2018
[4] To shareholders on the register on 22 June 2018
This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: ICG Enterprise Trust Plc via Globenewswire
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: ICG Enterprise Trust Plc via Globenewswire
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