Quarterly Update for the Quarter to 30 April 2017
13 June 2017
ICG Enterprise Trust Plc
Quarterly Update
For the quarter to 30 April 2017
Highlights
- Share price Total Return1 of 5.7% for the quarter and 39.9% for the 12 months to 30 April 2017
- Net asset value per share Total Return1 of 0.6% for the quarter and 19.9% for the 12 months
- The Portfolio1 is valued at £541.1m at 30 April 2017 with underlying growth for the quarter of 2.3%
- Strong realisations of £76.1m outstripped £17.6m of new investments in the quarter. In the last 12 months realisations and new investments are broadly in balance at £132.3m and £128.5m respectively
- The Company continued to deliver on a key strategic objective to broaden its geographic diversification: UK exposure at 37.6% is down from 45.1% in the 15 months since the change of manager and US exposure of 24.0% is up from 14.1% over the same period.
- The performance2 of the Company remains strong over the short, medium and long term, with the share price outperforming the FTSE All-Share Index over one, three, five and ten years
- As previously announced, and in line with ongoing succession plans being implemented by the Board, Jeremy Tigue is proposed to take over as Chairman at the AGM later today
| Performance to 30 April 2017 | 1 year | 3 year | 5 year | 10* year |
| Net asset value per share | 19.9% | 36.7% | 63.6% | 112.4% |
| Share price | 39.9% | 40.6% | 102.3% | 112.0% |
| FTSE All-Share Index | 20.1% | 21.8% | 58.6% | 73.0% |
| * As the Company changed its year end in 2010, the ten year figures are for the 121 month period to 30 April 2017. | ||||
Footnote
- Included in this Quarterly Update are Alternative Performance Measures ("APMs"). APMs have been used if considered by the Board and the Manager to be the most relevant basis for shareholders in assessing the overall performance of the Company, and for comparing the performance of the Company to its peers and its previously reported results. The Glossary includes further details of APMs and reconciliations to IFRS measures, where appropriate. The rationale for the APMs was discussed in detail in the Manager's Review of the 31 January 2017 Annual Report and Accounts. The Glossary includes a reconciliation of the Portfolio to the most relevant IFRS measure.
- All performance figures are on a total return basis, including the effect of re-invested dividends.
Performance overview
In the quarter to 30 April 2017 the share price increased by 5.7% to 738.0p and the net asset value increased by 0.6% to 876.0p. The FTSE All-Share Index was up 4.0% in the same period.
In the last twelve months the Net asset value per share Total Return is 19.9% and Share price Total Return is 39.9% compared with a 20.1% return from the FTSE All-Share Index.
The 30 April 2017 share price implies a discount to the net asset value per share of 15.7%, down from 19.8% at 31 January 2017.
The Portfolio1 is valued at £541.1m at 30 April 2017 with underlying growth for the quarter of 2.3% partially offset by adverse currency movements of 1.4%.
Activity in the quarter to 30 April 2017
Investment activity
Realisations
The Portfolio generated £76.1m of proceeds in the three months to 30 April.
18 full realisations were completed during the quarter at an average total return of 2.8 times cost and an average uplift of 38% to the prior carrying value.
The largest realisation during the quarter was the completion of the previously announced disposal by Graphite Capital of Micheldever, a distributor and retailer of tyres. This was the largest underlying investment in the Portfolio as at 31 January 2017 and the realisation generated proceeds of £35.9m representing a 3.7 times cost.
New Investments
New investment activity in the quarter totalled £17.6m, comprising fund drawdowns of £9.3m and secondary purchases of £8.3m.
During the quarter to 30 April 2017 two new commitments were made to third party funds, Oak Hill IV ($15.0m) and Hg Capital 8 (£5.5m). An additional primary commitment was also made to an in-house fund, ICG Strategic Secondaries Fund II, with the $10.0m increase in the quarter bringing the total commitment to this fund to $35.0m.
Three secondary purchases were made during the quarter: Oak Hill III (£4.8m), Oak Hill II (£0.6m) and ICG Recovery 2008B (£1.2m drawn out of a total commitment of £10.4m)
The Oak Hill primary and secondary transactions, as well as the ICG Strategic Secondaries fund continue to increase the Company's exposure to private equity investments in the US. This is in line with the Company's objective of increasing US exposure to 30-40%.
Cash and liquid assets1
Cash and liquid assets increased by £50.3m to £88.9m mainly as a result of the high level of realisations of the Portfolio in the three months to 30 April 2017. Non-investment cash flows and currency movements decreased cash by £3.0m. The Company also bought back 740,000 shares for £5.2m.
| Movement in liquid assets | 3 months to | |
| £m | 30 April 2017 | |
| Additions | (17.6) | |
| Cash proceeds generated by the portfolio (including income) | 76.1 | |
| Net cash generated by the investment portfolio | 58.5 | |
| Non-investment cash flows | (2.7) | |
| Effect of changes in foreign exchange rates | (0.3) | |
| Cash inflow before shareholder distributions | 55.5 | |
| Share buy-backs settled in the period | (5.2) | |
| Net cash movement | 50.3 | |
| Opening cash and liquid assets | 38.6 | |
| Closing cash and liquid assets | 88.9 |
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
The summary balance sheet and commitment position at 30 April 2017 is set out below.
| 30 April 2017 | % of net assets | 31 January 2017 | % of total assets | |
| £m | £m | |||
| Total portfolio | 541.1 | 88.7% | 594.4 | 97.0% |
| Cash and liquid assets | 88.9 | 14.6% | 38.6 | 6.3% |
| Other net current (liabilities)/assets | (20.3) | (3.3%) | (20.3) | (3.3)% |
| Net assets | 609.7 | 100.0% | 612.7 | 100.0% |
| 30 April 2017 | 31 January 2017 | |
| £m | £m | |
| Cash and liquid assets | 88.9 | 38.6 |
| Undrawn bank facility | 101.9 | 103.0 |
| Total liquidity | 190.8 | 141.6 |
| Outstanding commitments | 320.6 | 300.3 |
| Less: Total liquidity | (190.8) | (141.6) |
| Over-commitment | 129.8 | 158.7 |
| Overcommitment as % of net assets | 21.3% | 25.9% |
Enquiries
Analyst / Investor enquiries:
Emma Osborne, Portfolio Manager, ICG +44 (0) 20 3201 1302
Mark Crowther, Investor Relations, ICG +44 (0) 20 3201 7842
Nicola Edgar, Finance, ICG +44 (0) 20 3201 7791
Disclaimer
This Quarterly Update 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 Quarterly Update contains information which, prior to this announcement was insider 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 2017. 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 | 3.1% | |
| 2 | Froneri+^ | ||||
| Manufacturer and distributor of ice cream products | PAI Partners | 2013 | UK | 2.3% | |
| 3 | Education Personnel+ | ||||
| Provider of temporary staff for the education sector | ICG | 2014 | UK | 2.3% | |
| 4 | nGAGE | ||||
| Provider of recruitment services | Graphite Capital | 2014 | UK | 2.3% | |
| 5 | Standard Brands+ | ||||
| Manufacturer of fire lighting products | Graphite Capital | 2001 | UK | 2.2% | |
| 6 | PetSmart+ | ||||
| Retailer of pet products and services | BC Partners | 2015 | USA | 2.1% | |
| 7 | Frontier Medical+ | ||||
| Manufacturer of medical devices | Kester Capital | 2013 | UK | 1.9% | |
| 8 | Gerflor | ||||
| Manufacturer of vinyl flooring | ICG | 2011 | France | 1.8% | |
| 9 | Skillsoft+ | ||||
| Provider of off the shelf e-learning content | Charterhouse | 2014 | USA | 1.8% | |
| 10 | David Lloyd Leisure+ | ||||
| Operator of premium health clubs | TDR Capital | 2013 | UK | 1.8% | |
| 11 | System One+ | ||||
| Provider of specialty workforce solutions | Thomas H Lee Partners | 2016 | USA | 1.6% | |
| 12 | Visma+ | ||||
| Provider of business services | Cinven | 2014 | Norway | 1.5% | |
| 13 | TMF^ | ||||
| Provider of management and accounting outsourcing services | Doughty Hanson | 2008 | Netherlands | 1.5% | |
| 14 | The Laine Pub Company+ | ||||
| Operator of pubs and bars | Graphite Capital | 2014 | UK | 1.5% | |
| 15 | Roompot+ | ||||
| Operator and developer of holiday parks | PAI Partners | 2016 | Netherlands | 1.4% | |
| 16 | Beck & Pollitzer | ||||
| Provider of industrial machinery installation and relocation | Graphite Capital | 2016 | UK | 1.4% | |
| 17 | CPA Global+ | ||||
| Provider of patent and legal services | Cinven | 2012 | UK | 1.3% | |
| 18 | Algeco Scotsman | ||||
| Supplier and operator of modular buildings | TDR Capital | 2007 | USA | 1.3% | |
| 19 | Cambium | ||||
| Provider of educational solutions and services | ICG | 2016 | USA | 1.3% | |
| 20 | New World Trading Company | ||||
| Operator of distinctive pub restaurants | Graphite Capital | 2016 | UK | 1.2% | |
| 21 | Formel D | ||||
| Provider of out-sourced services to the automotive industry | Deustche Beteiligungs | 2013 | Germany | 1.2% | |
| 22 | U-POL^ | ||||
| Manufacturer and distributor of automotive refinishing products | Graphite Capital | 2010 | UK | 1.1% | |
| 23 | Swiss Education+ | ||||
| Provider of hospitality training | Invision Capital | 2015 | Switzerland | 1.0% | |
| 24 | ProXES | ||||
| Manufacturer of food processing machinery | Deustche Beteiligungs | 2013 | Germany | 1.0% | |
| 25 | Ceridian+ | ||||
| Provider of payment processing services | Thomas H Lee Partners | 2007 | USA | 1.0% | |
| 26 | Cognito+ | ||||
| Supplier of communications equipment, software & services | Graphite Capital | 2002 | UK | 1.0% | |
| 27 | Aero Technics Group | ||||
| Provider of civil aircraft maintenance | Graphite Capital | 2015 | UK | 0.7% | |
| 28 | Parques Reunidos | ||||
| Operator of attraction parks | Arle Capital | 2007 | Spain | 0.7% | |
| 29 | ICR Group^ | ||||
| Provider of repair and maintenance services to the energy industry | Graphite Capital | 2014 | UK | 0.7% | |
| 30 | Infobase Publishing | ||||
| Provider of educational solutions | ICG | 2016 | USA | 0.7% | |
| Total of the 30 largest underlying investments | 44.7% | ||||
| + 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 at 30 April 2017 are:
| Fund | Year of commitment | Country/ region | Value £m | Outstanding commitment £m | |
| 1 | Graphite Capital Partners VIII * | ||||
| Mid-market buy-outs | 2013 | UK | 51.2 | 39.8 | |
| 2 | BC European Capital IX ** | ||||
| Large buy-outs | 2011 | Europe | 21.7 | 1.9 | |
| 3 | CVC European Equity Partners V ** | ||||
| Large buy-outs | 2008 | Europe/USA | 16.1 | 1.2 | |
| 4 | Deutsche Beteiligungs Fund V | ||||
| Mid-market buy-outs | 2006 | Germany | 14.6 | 0.2 | |
| 5 | Fifth Cinven Fund | ||||
| Large buy-outs | 2012 | Europe | 14.6 | 1.2 | |
| 6 | Thomas H Lee Parallel Fund VI | ||||
| Large buy-outs | 2007 | USA | 14.5 | 1.1 | |
| 7 | Graphite Capital Partners VII * / ** | ||||
| Mid-market buy-outs | 2007 | UK | 13.6 | 4.7 | |
| 8 | ICG Velocity Partners Co-Investor ** | ||||
| Mid-market buyouts | 2016 | USA | 10.7 | 2.2 | |
| 9 | CVC European Equity Partners VI | ||||
| Large buy-outs | 2013 | Global | 10.3 | 7.5 | |
| 10 | TDR Capital II | ||||
| Mid-market and large buy-outs | 2006 | Europe | 10.0 | 0.8 | |
| 11 | Doughty Hanson & Co V ** | ||||
| Mid-market and large buy-outs | 2006 | Europe | 10.0 | 6.4 | |
| 12 | Graphite Capital Partners VI ** | ||||
| Mid-market buy-outs | 2003 | UK | 10.0 | 2.1 | |
| 13 | ICG Europe VI ** | ||||
| Mezzanine and equity in mid-market buyouts | 2015 | Europe | 9.8 | 11.5 | |
| 14 | Bowmark Capital Partners IV | ||||
| Mid-market buy-outs | 2007 | UK | 9.3 | - | |
| 15 | TDR Capital III | ||||
| Mid-market and large buy-outs | 2013 | Europe | 9.3 | 2.9 | |
| 16 | Permira V | ||||
| Large buy-outs | 2013 | Europe | 8.9 | 1.1 | |
| 17 | IK VII | ||||
| Mid-market buy-outs | 2013 | Europe | 8.7 | 0.5 | |
| 18 | Deutsche Beteiligungs Fund VI | ||||
| Mid-market buy-outs | 2012 | Germany | 8.6 | 1.0 | |
| 19 | ICG Europe V ** | ||||
| Mezzanine and equity in mid-market buyouts | 2012 | Europe | 8.5 | 1.2 | |
| 20 | Hollyport Secondary Opportunities V | ||||
| Tail-end secondary portfolios | 2015 | Global | 8.3 | 2.3 | |
| 21 | Thomas H Lee Equity Fund VII | ||||
| Large buy-outs | 2015 | USA | 8.1 | 9.5 | |
| 22 | ICG European Fund 2006 B | ||||
| Mezzanine | 2014 | Europe | 6.9 | 2.0 | |
| 23 | Activa Capital Fund II | ||||
| Mid-market buy-outs | 2007 | France | 6.8 | 1.5 | |
| 24 | PAI Europe VI | ||||
| Mid-market and large buy-outs | 2013 | Europe | 6.8 | 10.2 | |
| 25 | Nordic Capital Partners VIII | ||||
| Mid-market and large buy-outs | 2013 | Nordic | 6.7 | 3.0 | |
| 26 | ICG Strategic Secondaries Fund II | ||||
| Secondary fund restructurings | 2016 | North America | 6.7 | 21.3 | |
| 27 | Egeria Private Equity Fund IV | ||||
| Mid-market buy-outs | 2012 | Europe | 5.8 | 3.1 | |
| 28 | PAI Europe V ** | ||||
| Mid-market and large buy-outs | 2007 | Europe | 5.5 | 1.0 | |
| 29 | One Equity Partners VI | ||||
| Mid-market buy-outs | 2016 | USA/Western Europe | 5.3 | 6.8 | |
| 30 | Activa Capital Fund III | ||||
| Mid-market buy-outs | 2013 | France | 5.2 | 6.8 | |
| Total of the largest 30 fund investments | 332.5 | 154.8 | |||
| Percentage of total investment Portfolio | 61.4% | ||||
| * Includes the associated Top Up funds. | |||||
| ** All or part of an interest acquired through a secondary fund purchase. | |||||
Portfolio analysis
Closing Portfolio by value at 30 April 2017
| Third party £m | Graphite Capital £m | ICG £m | Total £m | % of investment Portfolio | |
| Primary investments in funds | 250.4 | 69.1 | 22.3 | 341.8 | 63.2% |
| Secondary investments in funds | 42.1 | 5.6 | 24.4 | 72.1 | 13.3% |
| Direct and co-investments | 85.2 | 30.4 | 11.6 | 127.2 | 23.5% |
| Total Portfolio | 377.7 | 105.1 | 58.3 | 541.1 | 100.0% |
| % of Portfolio | 69.8% | 19.4% | 10.8% | 100.0% | |
| Undrawn commitments | 217.6 | 46.7 | 56.3 | 320.6 | |
| Total exposure | 595.3 | 151.8 | 114.6 | 861.7 | |
| % exposure | 69.1% | 17.6% | 13.3% | 100.0% |
| Portfolio by investment type | % of value of underlying investments | |
| Large buyouts | 36.6% | |
| Mid-market buyouts | 54.0% | |
| Small buyouts | 9.4% | |
| Total | 100.0% |
| Portfolio by geographic distribution based on location of company headquarters | % of value of underlying investments | |
| UK | 37.6% | |
| North America | 24.0% | |
| Germany | 11.1% | |
| France | 7.8% | |
| Benelux | 6.3% | |
| Scandinavia | 5.9% | |
| Spain | 1.8% | |
| Italy | 1.7% | |
| Other Europe | 2.4% | |
| Rest of world | 1.4% | |
| Total | 100.0% | |
| Total Continental Europe | 37.0% |
| Portfolio by calendar year of investment | % of value of underlying investments | ||
| 2017 | 1.7% | ||
| 2016 | 21.3% | ||
| 2015 | 13.8% | ||
| 2014 | 20.9% | ||
| 2013 | 17.3% | ||
| 2012 | 5.4% | ||
| 2011 | 4.1% | ||
| 2010 | 3.6% | ||
| 2009 | 1.4% | ||
| 2008 | 3.0% | ||
| 2007 | 3.9% | ||
| 2006 and before | 3.6% | ||
| Total | 100.0% | ||
| Portfolio by sector | % of value of underlying investments | |
| Business services | 19.8% | |
| Healthcare and education | 18.5% | |
| Consumer goods and services | 17.3% | |
| Industrials | 15.0% | |
| Leisure | 12.8% | |
| Financials | 5.9% | |
| Technology and telecommunications | 4.4% | |
| Media | 2.8% | |
| Automotive supplies | 2.3% | |
| Chemicals | 1.2% | |
| Total | 100.0% |
Investment activity
Largest new underlying investments
| Cost* | ||||
| Investment | Description | Manager | Country | £m |
| Ten Entertainment Group PLC | Operator of indoor bowling centres | Harwood | UK | 1.1 |
| Intervias | Operator of petrol station forecourts | TDR Capital | UK | 0.9 |
| Imagine | Provider of in-store marketing solutions | Oak Hill | USA | 0.8 |
| Berlin Packaging | Supplier of rigid packaging products and value-added services | Oak Hill | USA | 0.8 |
| Professional Physical Therapy | Provider of outpatient physical therapy services | Thomas H Lee Partners | USA | 0.7 |
| CSafe | Provider of cold chain packaging solutions to airlines, freight forwarders | Thomas H Lee Partners | USA | 0.7 |
| OH Aircraft | Provider of leasing platform for aircrafts | Oak Hill | USA | 0.7 |
| Art Van | Retailer of furniture | Thomas H Lee Partners | USA | 0.7 |
| Allegro | Operator of online marketplace and price comparison website | Permira | Poland | 0.7 |
| FirstLight Fiber | Provider of fibre-optic bandwith infrastructure services | Oak Hill | USA | 0.7 |
| Total of 10 largest new underlying investments | 7.8 | |||
| * Cost of investment is calculated as the Company's share of the fund's cost of investment | ||||
Largest underlying realisations
| Investment | Manager | Year of investment | Realisation type | Proceeds £m |
| Micheldever | Graphite Capital | 2006 | Trade | 35.9 |
| Quironsalud | CVC | 2011 | Trade | 4.9 |
| Xella | PAI Partners | 2008 | Secondary | 3.5 |
| Cerba | PAI Partners | 2010 | Secondary | 3.5 |
| Findis | Activa | 2011 | Secondary | 3.3 |
| Autodata | Bowmark | 2014 | Trade | 2.9 |
| Host Europe Group | Cinven | 2013 | Trade | 2.5 |
| Alix Partners | CVC | 2012 | Secondary | 1.5 |
| Gaz Europeen | Activa | 2013 | Trade | 1.4 |
| Formula One Group | CVC | 2006 | Trade | 1.4 |
| Total of 10 largest underlying realisations | 60.8 | |||
Commitments analysis
The following tables analyse commitments at 30 April 2017. Original commitments are translated at 30 April 2017 exchange rates.
| Original commitment £m | Outstanding commitment £m | Average drawdown percentage | % of total outstanding commitments | |
| Investment period not commenced | 5.5 | 5.5 | 0.0% | 1.7% |
| Funds in investment period | 444.1 | 258.3 | 41.8% | 80.6% |
| Funds post investment period | 658.9 | 56.8 | 91.4% | 17.7% |
| 1,108.5 | 320.6 | 71.1% | 100.0% |
| Remaining investment period of commitments | % of commitments |
| Investment period not commenced | 1.7% |
| > 5 years | 8.8% |
| 4-5 years | 16.0% |
| 3-4 years | 13.0% |
| 2-3 years | 19.4% |
| 1-2 years | 20.9% |
| <1 year | 2.5% |
| Investment period complete | 17.7% |
| Total | 100.0% |
Movement in outstanding commitments in the quarter | £m |
| As at 31 January 2017 | 300.3 |
| New commitments | 35.0 |
| Drawdowns | (9.3) |
| Currency and other movements | (5.4) |
| As at 30 April 2017 | 320.6 |
| New commitments in the quarter to 30 April 2017 | |||
| Fund | Strategy | Geography | £m |
| Primary commitments | |||
| Oak Hill IV | Mid-market buyouts | USA | 12.0 |
| ICG Strategic Secondaries II | Secondary fund restructurings | USA | 7.9 |
| Hg Capital 8 | Mid-market buyouts | Europe | 5.5 |
| Total primary commitments | 25.4 | ||
| Commitments relating to secondary purchases | 9.6 | ||
| Total new commitments | 35.0 | ||
Currency Exposure
| 30 April | 30 April | 31 January | 31 January | |
| 2017 | 2017 | 2017 | 2017 | |
| £m | % | £m | % | |
| Portfolio* | ||||
| - Sterling | 230.3 | 42.7% | 269.1 | 45.3% |
| - Euro | 140.5 | 26.0% | 156.5 | 26.3% |
| - US dollar | 116.7 | 21.6% | 115.4 | 19.4% |
| - Other European | 41.5 | 7.7% | 41.5 | 7.0% |
| - Other | 12.1 | 2.0% | 11.8 | 2.0% |
| Total | 541.1 | 100.0% | 594.3 | 100.0% |
| *Currency exposure is calculated by reference to the location of the underlying Portfolio companies' headquarters. | ||||
Outstanding commitment currency exposure
| 30 April | 30 April | 31 January | 31 January | |
| 2017 | 2017 | 2017 | 2017 | |
| £m | % | £m | % | |
| Outstanding commitments | ||||
| - Sterling | 82.3 | 25.7% | 77.5 | 25.8% |
| - Euro | 161.8 | 50.5% | 166.2 | 55.4% |
| - US dollar | 74.5 | 23.2% | 54.5 | 18.1% |
| - Other European | 2.0 | 0.6% | 2.1 | 0.7% |
| Total | 320.6 | 100.0% | 300.3 | 100.0% |
Glossary
Alternative Performance Measures ("APMs") are a term defined by the European Securities and Markets Authority as "financial measures of historical or future performance, financial position, or cash flows, other than a financial measure defined or specified in the applicable financial reporting framework".
APMs are used in this report if considered by the Board and the Manager to be the most relevant basis for shareholders in assessing the overall performance of the Company and for comparing the performance of the Company to its peers, taking into account industry practice. Definitions and reconciliations to IFRS measures are provided in the main body of the report or in this Glossary, where appropriate.
Co-investment incentive scheme accrual represents the estimated value of interests in the co-investment incentive scheme operated by the Company. At both 30 April 2017 and 31 January 2017, the accrual was estimated as the theoretical value of the interests if the Portfolio had been sold at its carrying value at those dates.
Drawdowns are amounts invested by the Company into funds when called by underlying managers in respect of an existing commitment.
EBITDA stands for earnings before interest, tax, depreciation and amortisation, which is a widely used valuation measure in the private equity industry.
Enterprise value is the aggregate value of a company's entire issued share capital and net debt.
FTSE All-Share Index Total return is the change in the level of the FTSE All-Share Index, assuming that dividends are re-invested on the day that they are paid.
Full realisations are exit events (e.g. trade sale, sale by public offering, or sale to a financial buyer) following which the residual exposure to an underlying company is zero or immaterial.
Funds in investment period are those funds which are able to make new investments under the terms of their fund agreements, usually up to five years after the initial commitment.
Net asset value per share Total Return is the change in the Company's net asset value per share, assuming that dividends are re-invested at the end of the quarter in which the dividend was paid.
Net debt is calculated as the total short term and long term debt in a business, less cash and cash equivalents.
Overcommitment
In order to achieve full or near full investment, it is usual for private equity fund investors to make commitments exceeding the amount of cash immediately available for investment. This is described as "overcommitment". When determining the appropriate level of overcommitment, careful consideration needs to be given to the rate at which commitments might be drawn down, and the rate at which realisations will generate cash from the existing portfolio to fund new investment.
Portfolio
Throughout, reference is made to the "Portfolio", which represents the aggregate of the investment Portfolios of the Company and of its subsidiary limited partnerships. This is consistent with the commentary in previous annual and interim reports. The Board and the Manager consider that this is the most relevant basis for shareholders to assess the overall performance of the Company and comparison with its peers.
The closest equivalent amount reported on the balance sheet is "investments at fair value". A reconciliation of these two measures is presented below:
| £m | Investments at fair value as per balance sheet | Cash held by subsidiary limited partnerships | Balances receivable from subsidiary limited partnerships | Co-investment incentive scheme accrual | Portfolio |
| 30 April 2017 | 522.5 | (2.3) | 1.5 | 19.4 | 541.1 |
| 31 January 2017 | 572.2 | - | 1.4 | 20.7 | 594.3 |
Post-crisis investments are defined as those completed in 2009 or later.
Pre-crisis investments are defined as those completed in 2008 or before, based on the date the original deal was completed, which may differ from when the Company invested if acquired through a secondary.
Realisation proceeds are amounts received by the Company in respect of the Portfolio, which may be in the form of capital proceeds or income such as interest or dividends.
Share price Total Return is the change in the Company's share price, assuming that dividends are re-invested on the day that they are paid.
Total Return is a performance measure that assumes the notional re-investment of dividends. This is a measure commonly used by the listed private equity sector and listed companies in general.
The tables below set out the share price and the net asset value per share growth figures for periods of one, three, five and ten years to the balance sheet date, on both an unadjusted basis (i.e. without dividends re-invested) and on a Total Return basis.
| Unadjusted performance in years to 30 April 2017 | 1 year | 3 year | 5 year | 10 year* |
| Net asset value per share | 17.6% | 27.3% | 49.9% | 88.1% |
| Share price | 36.3% | 29.0% | 81.3% | 78.3% |
| FTSE All-Share Index | 15.8% | 9.5% | 32.8% | 20.7% |
| Total Return performance in years to 30 April 2017 | 1 year | 3 year | 5 year | 10 year* |
| Net asset value per share | 19.9% | 36.7% | 63.6% | 112.4% |
| Share price | 39.9% | 40.6% | 102.3% | 112.0% |
| FTSE All-Share Index | 20.1% | 21.8% | 58.6% | 73.0% |
* As the Company changed its year end in 2010, the ten year figures are for the 121 month period to 30 April 2017.
Underlying valuation movement is the change in the valuation of the Company's Portfolio, before the effect of currency movements.
Undrawn commitments are commitments that have not yet been drawn down (see definition of drawdowns).
Uplift on exit represents the increase in gross value relative to the underlying manager's most recent valuation prior to the announcement of the disposal. Excludes a small number of investments that were public throughout the life of the investment. May differ from uplift in the reporting period in certain instances.
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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