ICG Enterprise Trust Icg Enterprise Trust Plc : Statement Re Quarterly Update For The Quarter To 30 April 2018
June 18 2018 - 8:00AM
UK Regulatory
TIDMICGT
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
-- GBP64.6m 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 GBP611.8m[1] #_ftn1 , 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; GBP25.2m of realisation proceeds
-- Realisations at a 31% uplift[2] #_ftn2 to carrying value; 2.2x multiple
of cost
-- Continued exit activity since the quarter end
-- A further GBP24.2m of proceeds received in May 2018
-- GBP10.7m from the sale of The Laine Pub Company; a 2.0x multiple to cost
-- Year to date, realisations continue to outweigh new investments[3] #_ftn3
New commitments and selective investment into compelling opportunities
-- GBP64.6m of new primary commitments
-- EUR40m (GBP34.6m) 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
-- GBP30m to Graphite IX
-- Focus on mid-market buyouts in the UK
-- Companies valued at between GBP30 million and GBP150 million
-- GBP22.3m 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
-- GBP7.1m 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
-- GBP5.1m 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] #_ftn4)
- 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 GBP672m
- Cash balance of GBP74.8m at 30 April 2018
- Uncalled commitments of GBP376.3m
- GBP179.0m total liquidity (including GBP104.2m 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."
Enquiries
Analyst / Investor enquiries: +44 (0) 20 3201 7700
Emma Osborne, Head of Private Equity Fund Investments,
ICG
Nikki 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
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. 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.
Value as
Year of a % of
Company Manager investment Country Portfolio
1 City & County Healthcare Group
Graphite
Provider of home care services 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
Graphite
Provider of recruitment services 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+
Thomas H Lee
Provider of payment processing services Partners 2007 USA 1.8%
11 The Laine Pub Company+
Graphite
Operator of pubs and bars Capital 2014 UK 1.8%
12 ICR Group
Provider of repair and maintenance services to the Graphite
energy industry 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+
Thomas H Lee
Provider of specialty workforce solutions Partners 2016 USA 1.6%
Value as
Year of a % of
Company Manager investment Country Portfolio
16 Beck & Pollitzer
Provider of industrial machinery installation and Graphite
relocation Capital 2016 UK 1.6%
17 Skillsoft+
Provider of off the shelf e-learning content Charterhouse 2014 USA 1.5%
18 Frontier Medical+
Kester
Manufacturer of medical devices Capital 2013 UK 1.5%
19 TMF^
Provider of management and accounting outsourcing Doughty
services Hanson 2008 Netherlands 1.5%
20 Yudo+
Designer and manufacturer of hot runner systems ICG 2018 South Korea 1.4%
21 Endeavor Schools+
Leeds Equity
Operator of schools Partners 2018 USA 1.2%
22 YSC
Provider of leadership consulting and management assessment Graphite
services Capital 2017 UK 1.1%
23 Swiss Education+
Invision
Provider of hospitality training Capital 2015 Switzerland 1.1%
24 New World Trading Company
Graphite
Operator of distinctive pub restaurants Capital 2016 UK 1.1%
25 U-POL^
Manufacturer and distributor of automotive refinishing Graphite
products Capital 2010 UK 1.0%
26 Cognito+
Graphite
Supplier of communications equipment, software & services Capital 2002 UK 0.9%
27 Compass Community
Provider of fostering services and children residential Graphite
care Capital 2017 UK 0.9%
28 Random42
Provider of high-quality medical animation and digital
media services to the healthcare and pharmaceutical Graphite
industry Capital 2017 UK 0.8%
29 Intervias
Operator of petrol station forecourts TDR Capital 2014 UK 0.7%
30 Odgers+
Graphite
Provider of recruitment services 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:
Outstanding
Year of Country/ Value commitment
Fund commitment region GBPm GBPm
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
USA/Western
Mid-market buy-outs 2016 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
Outstanding
Year of Country/ Value commitment
Fund commitment region GBPm GBPm
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 analysis(1)
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 42.2%
Total diversified fund investments 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
1. 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.
31 January
30 April 2018 2018
% of net % of net
GBPm assets GBPm assets
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
3 months
GBPm 30 April 18
Additions(2) (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
1. Additions cash figure for quarter to 30 April includes GBP0.6m of
drawdowns paid which were accrued at the prior quarter end.
Uncalled commitment coverage
30 April
2018 31 January 2018
GBPm GBPm
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] #_ftnref1) 49% of the Portfolio is valued using 31 March 2018 (or
later) valuations.
([2] #_ftnref2) Uplift figure excludes publically listed companies that
were exited via sell downs of their shares
([3] #_ftnref3) At 31 May 2018
([4] #_ftnref4) 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
http://www.icg-enterprise.co.uk/
(END) Dow Jones Newswires
June 18, 2018 08:00 ET (12:00 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
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