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ICG Enterprise Trust (ICGT)

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Thursday 23 January, 2020

ICG Enterprise Trust

ICG Enterprise Trust Plc: For the three months to 31 October 2019

ICG Enterprise Trust Plc: For the three months to 31 October 2019

23 January 2020
ICG Enterprise Trust plc
Quarterly Update

For the three months to 31 October 2019


  • NAV per share of 1,140.4p
    • Total return of +9.7% over the nine months
    • Total return of -2.5% over the quarter; performance impacted by foreign exchange movements
  • Continued positive underlying performance across the portfolio
  • Cash generative portfolio with healthy level of realisations at significant uplifts to carrying value and multiples of cost
  • Continued development of new high-quality manager relationships and highly selective co-investment programme
    • Further increasing exposure to the North American market, which now represents 30% of the portfolio
  • Active management of the portfolio, post the reporting period, one secondary sale has been completed at a premium to fund valuation
  • NAV and share price continue to outperform the FTSE All-Share Index over one, three, five and 10 years

Business review

Continued strong performance across the portfolio

  • Investment portfolio valued at £782.6m1
    • +12.4% portfolio return for the first nine months of the financial year; +12.6% on a constant currency basis
    • -2.1% portfolio return for the quarter; +2.1% on a constant currency basis
    • Impact of FX movements negative during the quarter but broadly neutral over the nine months

Portfolio is cash generative

  • 16 full realisations in the quarter; £40.5m of proceeds received
    • Realisation of Abode Healthcare co-investment alongside Tailwind III at 2.0x cost, generating proceeds of £9.8m, an IRR of 81%
  • 41 full realisations in the first nine months of the financial year; £108.1m of proceeds received
    • Realisations at a 34% uplift to carrying value; 2.3x multiple of cost

Selective investment into a number of compelling high conviction investment opportunities

  • High conviction investments (ICG directly controlled investments, third-party co-investments and secondary investments) comprise 41% of investment portfolio
  • Two US co-investments completed during the quarter, each alongside leading US mid-market managers
    • $10m (£8.1m) into VitalSmarts, a leading provider of corporate training courses, our second co-investment alongside Leeds Equity
    • $10m (£7.8m) into Berlin Packaging, a provider of global packaging services and supplies, alongside Oak Hill Capital Partners
  • £45.7m of new investment in the quarter; £109.6m in the nine months
    • High conviction investments 36% of capital deployed in quarter; 37% in nine months
    • Focus remains on defensive growth, structural downside protection and relative value
    • The portfolio is well balanced across a range of developed markets; US exposure now 30% of the portfolio having more than doubled as a proportion of the portfolio since 2016 when ICG became manager
  • £34.5m new primary commitments to three funds in the quarter including two new leading European managers (Carlyle and Investindustrial)
    • €10m (£8.6m) commitment to Carlyle Europe V, focused on mid-market European buyouts
    • €15m (£13.6m) commitment to Investindustrial VII, focused on Southern European mid-market buyouts, with a specific focus on Italy and Spain
    • $15m (£12.4m) commitment to Gridiron IV, a US mid-market buyout fund
  • In total, £152.4m of new primary commitments have been made to eleven funds in the first nine months of the financial year

Continued cash generation and new investment opportunities since quarter end

  • Further £37.7m of proceeds received since the quarter end2, including £8.2m from a secondary sale at a premium to the prior valuation
    • The secondary market is a key tool for actively managing the portfolio both from a new investment and a realisation perspective
  • £34.1m of new investment, including £13.1m redeployed into a restructuring transaction alongside PAI Partners, whereby we chose to continue to hold the majority of our holding in Froneri, alongside PAI Partners. We first invested in Froneri, which is the third largest manufacturer and distributor of ice cream worldwide, in 2013, via our commitment to PAI V and directly via a co-investment alongside the fund. The original investment delivered a strong return having quadruped EBITDA in the last five years of PAI ownership.
  • Closing net asset value of £786.2m; investment portfolio represents 99.5% of net asset value
  • Cash balance of £33.1m; uncalled commitments of £493.7m
    • £184.8m total liquidity (including £151.7m undrawn bank facility)

Strong balance sheet


  • Third quarter dividend of 5p declared, taking dividends for the nine months to 15p
    • Third quarter dividend will be paid on 6 March 2020
    • The ex-dividend date will be 13 February 2020 and the record date 14 February 2020

·Since the period end, non-executive director, Jane Tufnell, has been appointed Chair-designate and will succeed Jeremy Tigue when he steps down from the Board at the AGM in June 2020
Consistent strong performance
The performance of the Company remains strong over the short, medium and long term

Performance to 31 October 20193 months9 months1 year3 years5 years10* years 
Net asset value per share (TR)-2.5%+9.7%+11.3%+48.5%+86.7%+226.4% 
Share price (TR)+7.0%+15.6%+15.5%+53.8%+85.5%+242.4% 
FTSE All-Share Index (TR)-2.1%+8.3%+6.8%+19.3%+37.9%+117.9% 
* As the Company changed its year end in 2010, the ten-year figures are for the 121 month period to 31 October 2019.

 Oliver Gardey, Head of Private Equity Fund Investments, ICG, commented:
“The portfolio has continued to deliver strong underlying returns in the third quarter. We have continued to deploy capital into private companies with strong defensive characteristics in sectors with non-cyclical growth drivers. We are pleased with the progress made on increasing our portfolio weighting to international markets.


The portfolio continues to report realisations at significant uplifts to carry value and cost, and we believe it is well positioned to continue to generate value for shareholders, as well as weather political and economic uncertainty. We have continued to build new high-quality manager relationships successfully which will offer us unique private market insights and investment opportunities in the future.”


Analyst / Investor enquiries:  +44 (0) 20 3201 7700 Oliver Gardey, Head of Private Equity Fund Investments, ICG 
Colm Walsh, Managing Director, ICG 
Owen Jones, Investor Relations, ICG 




Alicia Wyllie, Co-Head of Corporate Communications, ICG     +44 (0) 20 3201 7994
Vikki Kosmalska, Associate Partner, Maitland    +44 (0) 20 7379 5151


Disclaimer This 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.

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 31 October 2019. 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.

 CompanyManagerYear of investmentCountryValue as a % of Portfolio
1DomusVi +    
 Operator of retirement homesICG2017France3.7%
2City & County Healthcare Group    
 Provider of home care servicesGraphite Capital2013UK3.0%
3Minimax +    
 Supplier of fire protection systems and servicesICG2018Germany2.7%
4Froneri +^    
 Manufacturer and distributor of ice cream productsPAI Partners2013UK2.6%
5PetSmart +    
 Retailer of pet products and servicesBC Partners2015USA2.4%
6Roompot +    
 Operator and developer of holiday parksPAI Partners2016Netherlands2.3%
7Yudo +    
 Manufacturer of components for injection mouldingICG2018South Korea2.0%
8Beck & Pollitzer    
 Provider of industrial machinery installation and relocationGraphite Capital2016UK1.9%
 Provider of gutter protection solutionsGridiron2016USA1.8%
10Visma +    
 Provider of accounting software and accounting outsourcing servicesICG2017Norway1.8%
11System One +    
 Provider of specialty workforce solutionsThomas H Lee Partners2016USA1.8%
12ICR Group    
 Provider of repair and maintenance services to the energy industryGraphite Capital2014UK1.7%
 Manufacturer of vinyl flooringICG2011France1.7%
14Supporting Education Group +^    
 Provider of temporary staff for the education sectorICG2014UK1.6%
15Doc Generici +    
 Retailer of pharmaceutical products


16IRI +    
 Provider of data and predictive analytics to consumer goods manufacturersNew Mountain2018USA1.5%
 Provider of recruitment servicesGraphite Capital2014UK1.4%
18Endeavor Schools +    
 Operator of schoolsLeeds Equity Partners2018USA1.4%
 Provider of leadership consulting and management assessment servicesGraphite Capital2017UK1.3%
20Berlin Packaging +    
 Provider of global packaging services and suppliesOak Hill Capital Partners2019USA1.2%
21PSB Academy +    
 Provider of private tertiary educationICG2018Singapore1.1%
22VitalSmarts +    
 Provider of corporate training courses focused on communication skills and leadership developmentLeeds Equity Partners2019USA1.0%
23Compass Community    
 Provider of fostering services and children residential careGraphite Capital2017UK1.0%
24David Lloyd Leisure +    
 Operator of premium health clubsTDR Capital2013UK0.9%
25Ceridian +    
 Provider of payroll and human capital softwareThomas H Lee Partners2007USA0.8%
 Manufacturer and distributor of automotive refinishing productsGraphite Capital2010UK0.8%
27Cognito +^    
 Supplier of communications equipment, software & servicesGraphite Capital2002 / 2014UK0.7%
28EG Group    
 Operator of petrol station forecourtsTDR Capital2014UK0.6%
29RegEd +    
 Provider of regulatory compliance and management software productsGryphon Investors2019USA0.6%
 Provider of data and investment products focused on natural resourcesICG2018USA0.5%
 Total of the 30 largest underlying investments   47.2%
 ? 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 31 October 2019 are:

 FundYear of commitmentCountry/ regionValue £mOutstanding commitment
1Graphite Capital Partners VIII *    
 Mid-market buyouts2013UK93.414.9 
2Gridiron Capital Fund III     
 Mid-market buyouts2016North America21.94.2 
3ICG Europe VI **     
 Mezzanine and equity in mid-market buyouts2015Europe19.63.3 
4CVC European Equity Partners VI    
 Large buyouts2013Europe/USA18.22.9 
5Thomas H Lee Equity Fund VII     
 Mid-market and large buyouts2015USA16.61.6 
6BC European Capital IX **     
 Large buyouts2011Europe/USA15.20.4 
7Advent Global Private Equity VIII    
 Large buyouts2016Europe/USA  14.7  1.4 
8PAI Europe VI     
 Mid-market and large buyouts2013Europe  13.9  1.7 
9ICG Strategic Secondaries Fund II    
 Secondary fund restructurings2016Europe/USA  13.5  16.2 
10Sixth Cinven Fund     
 Large buyouts2016Europe  13.2  5.4 
11Graphite Capital Partners VII * / **    
 Mid-market buyouts2007UK  12.7  2.8 
12Permira V     
 Large buyouts2013Europe/USA  12.6  0.9 
13One Equity Partners VI     
 Mid-market buyouts2016Europe/USA  11.8  1.1 
14Silverfleet II     
 Mid-market buyouts2014Europe  11.4  2.1 
15ICG Europe VII     
 Mezzanine and equity in mid-market buyouts2018Europe  11.1  24.9 
16Resolute II **     
 Mid-market buyouts2018USA  10.5  2.3 
17TDR Capital III     
 Mid-market and large buyouts2013Europe  10.2  2.2 
18ICG Asia Pacific Fund III     
 Mezzanine and equity in midmarket buyouts2016Asia Pacific  10.1  3.9 
19BC European Capital X     
 Large buyouts2016Europe  9.3  4.7 
20IK VII     
 Mid-market buyouts2013Europe  8.7  0.4 
21Hollyport Secondary Opportunities VI    
 Tail-end secondary portfolios2017Global  8.6  2.3
22Activa Capital Fund III    
 Mid-market buyouts2013France  8.5  2.1
23The Fourth Alcuin Fund    
 Mid-market buyouts2015UK  8.2  1.7
24Permira VI    
 Large buyouts2016Europe  8.2  1.9
25Nordic Capital Partners VIII    
 Mid-market and large buyouts2013Europe  8.1  1.4
26Oak Hill Capital Partners IV    
 Mid-market buyouts2017USA  8.1  3.4
27IK VIII    
 Mid-market buyouts2016Europe  7.8  1.1
28Charterhouse Capital Partners X     
 Large buyouts2015Europe  7.7  5.9
29Bain Capital Europe IV    
 Mid-market buyouts2014Europe  7.5  1.1
30Harwood Private Equity IV    
 Mid-market buyouts2015UK  7.4  - 
 Total of the largest 30 fund investments   428.7   118.2
 Percentage of total investment Portfolio 54.8% 
 * Includes the associated Top Up funds.   
 ** All or part of an interest acquired through a secondary fund purchase. 

Portfolio analysis
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

Investment category% of portfolio
High conviction portfolio

Third party co-investments16.4%
Third party secondary investments3.9%
Total High Conviction investments41.4%

Third party funds portfolio
Graphite Capital primary funds 

Third party primary funds
Total diversified fund investments

Portfolio by investment type % of value of underlying investments
Large buyouts 49.6%
Mid-market buyouts 41.5%
Small buyouts 5.6%
Other 3.3%
Total 100.0%

Portfolio by calendar year of investment

% of value of underlying investments
2019  11.5%
2018  20.6%
2017  19.4%
2016  16.8%
2015  8.0%
2014  8.8%
2013  8.2%
2012  1.7%
2011  0.9%
2010  1.3%
2009  1.0%
2008  0.2%
2007  1.3%
2006 and before  0.3%
Total  100.0%

Portfolio by sector % of value of underlying investments
Healthcare and education 22.7%
Industrials 21.6%
Consumer goods and services 13.8%
TMT 13.5%
Business services 12.4%
Leisure 7.6%
Financials 5.4%
Other 3.0%
Total 100.0%


Portfolio by geographic distribution based on location of Company headquarters

% of value of underlying investments
UK 29.9%
North America 29.5%
Europe 36.4%
Rest of world 4.2%
Total 100.0%

Balance sheet information

The summary balance sheet at 31 October 2019 is set out below.

 31 October 2019% of net assets31 January 2019% of net assets
Total portfolio782.699.5%694.895.1%
Cash and liquid assets33.14.2%60.68.3%
Other net current liabilities(29.5)(3.7%)(24.5)(3.4)%
Net assets786.2100.0%730.9100.0%

 Movement in the portfolio 9 months
 £m 31 October 19
 Opening Portfolio* 694.8
   Third-party funds portfolio drawdowns 68.6
   High conviction investments – ICG funds, secondary
  investments and co-investments
 Total new investment 109.6
 Realisation Proceeds (108.1)
 Net cash (inflow)/outflow   1.5
 Underlying Valuation Movement** 87.6
 Currency movement (1.3)
 Closing Portfolio* 782.6
 % underlying Portfolio growth (local currency) 12.6%
 % currency movement (0.2%)
 % underlying Portfolio growth (Sterling) 12.4%

** 85% of the Portfolio is valued using 30 September 2019 (or later) valuations (31 Jan 19: 91%).

Movement in liquid assets
£m9 months
31 October 19
Additions  (109.6) 
Cash proceeds generated by the portfolio (including income)108.1 
Net cash generated by the investment portfolio  (1.5) 
Non-investment cash flows  (11.8) 
Effect of changes in foreign exchange rates  0.1 
Cash inflow before shareholder distributions  (13.2) 
Dividends paid to shareholders(11.7) 
Share buy backs   (2.6) 
Net cash movement  (27.5) 
Opening cash and liquid assets  60.6 
Closing cash and liquid assets  33.1  

Uncalled commitment coverage  
 31 October
31 January 2019
Cash and liquid assets33.160.6
Undrawn bank facility151.7103.9
Total liquidity184.8164.5
Outstanding commitments493.7411.2
Less: Total liquidity(184.8)(164.5)
Over-commitment as % of net assets39.3%33.7%



1 85% of the Portfolio is valued using 30 September 2019 (or later) valuations.

2 As at 31 December 2019

a d v e r t i s e m e n t