TIDMICGT
ICG Enterprise Trust plc
Q1 Update for the three months ended 30 April 2022
28 June 2022
NAV per Share Total Return of 4.5% in the first quarter;
27.9% in the last twelve months
Highlights
-- NAV per Share of 1,761p (31 January 2022: 1,690p),
NAV per Share Total Return of 4.5% during the
quarter; 27.9% during the last twelve months
-- Portfolio Return on a Local Currency Basis during the
quarter of 2.0% (Sterling return: 5.2%); 30.2% during
the last twelve months. Portfolio valued at GBP1,244m
on 30 April 2022
-- Disciplined transaction activity: new Investments of
GBP59.1m and Realisation Proceeds of GBP48.8m during
the quarter, including 17 Full Exits executed at an
average of 23% Uplift to Carrying Value and 2.7x
Multiple to Cost
-- First quarter dividend of 7p per share; progressive
dividend policy maintained
-- Revolving Credit Facility increased to EUR240m in May,
and maturity extended to February 2026
-- Board strengthened further by the appointment of two
additional Non-Executive Directors
Oliver Gardey
Head of Private Equity Fund Investments, ICG
The 4.5% growth in ICGT's NAV per Share Total Return
in the first quarter reflects the resilience of our
Portfolio, which grew 2.0% during the quarter on a
local currency basis. Our Portfolio of private companies
continues to generate attractive shareholder returns
and, while realisation proceeds are lower than during
Q1 FY22, the 17 Full Exits from our Portfolio were
executed at attractive uplifts to carrying values.
We are currently in an unusual environment, which
is presenting attractive primary and secondary opportunities.
Furthermore, our Manager's expertise in structured
transactions with downside protection is generating
differentiated investment opportunities for ICG Enterprise
Trust. We were able to capitalise on these factors
during the quarter, making a number of primary commitments
to high-performing managers and sourcing attractive
secondary and direct investment opportunities. Discipline
is crucial, and we remain highly selective in our
investment process.
Looking ahead, we believe ICGT's focus on investing
in companies with defensive growth characteristics
through our actively managed portfolio positions us
well to generate long-term value. We are invested
in high quality companies that we expect to show resilient
operational and financial performance across economic
cycles, and our Portfolio offers diversified exposure
across vintages, sectors and countries.
PERFORMANCE OVERVIEW
Annualised
--------------------------
3 months 1 year 3 years 5 years 10 years
-------------------------------- -------- ------ ------- ------- --------
Performance to 30 April 2022
NAV per Share Total Return 4.5% 27.9% 20.3% 17.4% 13.8%
Share Price Total Return (6.7%) 5.2% 10.9% 11.5% 13.3%
FTSE All-Share Index Total
Return 1.1% 8.7% 4.5% 4.8% 7.2%
Three months to: 12 months to:
-------------------------- --------------------------
30 Apr. 2022 30 Apr. 2021 30 Apr. 2022 30 Apr. 2021
------------------- ------------ ------------ ------------ ------------
Portfolio Return on
a Local Currency
Basis 2.0% 3.4% 30.2% 37.0%
NAV per Share Total
Return 4.5% 1.6% 27.9% 29.8%
Realisation Proceeds GBP49m GBP100m GBP282m GBP208m
Total New Investment GBP59m GBP32m GBP331m GBP139m
ENQUIRIES
Investor / Analyst enquiries:
Oliver Gardey, Head of Private Equity Fund Investment, ICG: +44
(0) 20 3545 2000
Colm Walsh, Managing Director of Private Equity Fund
Investments, ICG
Chris Hunt, Head of Shareholder Relations, ICG
Livia Bridgman Baker, Shareholder Relations, ICG
Media enquiries:
Clare Glynn, Corporate Communications, ICG: +44 (0) 20 3545
1395
Website:
www.icg-enterprise.co.uk
Company timetable
Ex-dividend date: 7 July 2022
Record date: 8 July 2022
Payment of dividend: 22 July 2022
ABOUT ICG ENTERPRISE TRUST
ICG Enterprise Trust is a leading listed private equity investor
focused on creating long-term growth by delivering consistently
strong returns through selectively investing in profitable private
companies, primarily in Europe and the US.
As a listed private equity investor, our purpose is to provide
shareholders with access to the attractive long-term returns
generated by investing in private companies, with the added benefit
of daily liquidity.
We invest in companies directly via co-investments and through
funds managed by ICG and other leading private equity managers who
focus on creating long-term value and building sustainable growth
through active management and strategic change.
We have a long track record of delivering strong returns through
a flexible mandate and highly selective approach that strikes the
right balance between concentration and diversification, risk and
reward.
NOTES
Included in this document 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 in the Company's H1 results includes further
details of APMs and reconciliations to International Financial
Reporting Standards ("IFRS") measures, where appropriate.
In the Manager's Review and Supplementary Information, all
performance figures are stated on a Total Return basis (i.e.,
including the effect of re-invested dividends). ICG Alternative
Investment Limited, a regulated subsidiary of Intermediate Capital
Group plc, acts as the Manager of the Company.
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.
BUSINESS REVIEW
Portfolio Structure
We invest in businesses directly, through ICG managed funds, and
through third-party private equity managers. We believe that this
combination of investments results in a differentiated and balanced
portfolio construction, striking the right balance between
concentration and diversification, risk and reward.
ICGT's Portfolio composition as at 30 April 2022 is shown
below:
Investment category GBPm % of Portfolio
------------------------------------ ------- ---------------
ICG managed investments 358.7 28.8%
Third party Direct Investments 201.5 16.2%
Third party Secondary Investments 60.0 4.8%
------------------------------------ ------- ---------------
High Conviction Investments 620.2 49.9%
------------------------------------ ------- ---------------
Third Party Funds 623.5 50.1%
------------------------------------ ------- ---------------
Total 1,243.7 100.0%
------------------------------------ ------- ---------------
Portfolio performance
-- Portfolio valued at GBP1,244m on 30 April 2022
-- Portfolio Return on a Local Currency Basis of 2.0% during the quarter
-- High Conviction Investments (49.9% of the Portfolio) generated local
currency returns of 2.1% during the quarter and Third Party Funds (50.1%
of the Portfolio) generated local currency returns of 1.9%
Three months
Movement in the Portfolio to 30 April 2022 GBPm
----------------------------------------------------- ------------
Opening Portfolio 1,172.2
------------
Total New Investments 59.1
Total Proceeds (48.8)
------------
Net (proceeds)/investments 10.3
Valuation movement* 23.1
Currency movement 38.1
----------------------------------------------------- ------------
Closing Portfolio 1,243.7
% Portfolio growth (local currency) 2.0%
----------------------------------------------------- ------------
% currency movement 3.1%
------------
% Portfolio growth (Sterling) 5.2%
Effect of cash drag 0.1%
----------------------------------------------------- ------------
Expenses and other income (0.5)%
----------------------------------------------------- ------------
Co-investment Incentive Scheme Accrual (0.3)%
----------------------------------------------------- ------------
Impact of share buybacks and dividend reinvestment 0.0%
----------------------------------------------------- ------------
NAV per share Total Return 4.5%
----------------------------------------------------- ------------
* 83% of the Portfolio is valued using 30 March 2022 (or later)
valuations (Q1 22: 82%)
New investment
-- GBP59.1m of Total New Investment in the quarter; 52.8% (GBP31.2m)
invested into High Conviction Investments with the remaining 47.2%
(GBP27.9m) being drawdowns on a range of Commitments to Third Party Funds
-- Within our High Conviction Investments, we made a new co-investment of
GBP12.8m alongside our Manager and deployed GBP16.7m in drawdowns to
ICG-managed funds (principally LP Secondaries I and ICG Europe Fund
VIII). The detail of the co-investment made during the period is set out
below:
Company Manager Company sector Description Investment
------- ------- ----------------- ----------------------------- ----------
Newton ICG Business Services Provider of management GBP12.8m
consulting services
------- ------- ----------------- ----------------------------- ----------
-- The balance of GBP1.7m of High Conviction Investments made during the
quarter comprises co-investments alongside third-party managers and
drawdowns on commitments acquired through secondary transactions
New commitments
-- During the period we made a total of GBP119.0m of new fund Commitments,
of which GBP45.5m was to the ICG-managed LP Secondaries Fund I,
supporting our strategic target to increase our exposure to the secondary
market
-- The breakdown of new Commitments was as follows:
Fund Manager Focus ICG Enterprise Trust
Commitment during the
period
--------------------- ---------- -------------------- ---------------------
ICG LP Secondaries ICG Secondary portfolio $60.0m (GBP45.5m)
Fund I of mid-market and
large buyouts
--------------------- ---------- -------------------- ---------------------
PAI Europe VIII PAI Mid-market and large EUR25.0m (GBP20.9m)
buyouts
--------------------- ---------- -------------------- ---------------------
Advent X Advent Large buyouts EUR20.0m (GBP16.8m)
--------------------- ---------- -------------------- ---------------------
Gridiron V Gridiron Mid-market buyouts $20.0m (GBP15.0m)
--------------------- ---------- -------------------- ---------------------
Permira VIII Permira Large buyouts EUR15.0m (GBP12.6m)
--------------------- ---------- -------------------- ---------------------
Hg Genesis X Hg Capital Mid-market buyouts EUR5.0m (GBP4.2m)
--------------------- ---------- -------------------- ---------------------
Hg Saturn III Hg Capital Mid-market and large $5.0m (GBP4.0m)
buyouts
--------------------- ---------- -------------------- ---------------------
Realisation activity
-- Realisation proceeds of GBP48.8m received during the quarter, of which
GBP37.9m was generated from 17 Full Exits executed at an average of 23%
Uplift to Carrying Value and 2.7x Multiple to Cost
Quoted Companies
-- We do not invest directly in publicly quoted companies, but gain listed
investment exposure when IPOs are used to exit an investment. Public
market valuations are typically more volatile than those observed in
private markets
-- At 30 April 2022, quoted companies representing 9.2% of the Portfolio
were valued by reference to the latest market price (31 January 2022;
10.3%)
-- Only one quoted investment individually accounted for 0.5% or more of the
Portfolio value:
Company Ticker % value of Portfolio
----- ----------------------------------- ------- --------------------
1 Chewy (part of PetSmart holding)(1) CHWY-US 3.5%
----- ----------------------------------- ------- --------------------
Other 5.7%
----- ----------------------------------- ------- --------------------
Total 9.2%
----- ----------------------------------- ------- --------------------
(1) % value of Portfolio includes entire holding of
PetSmart and Chewy. Majority of value is within Chewy
Balance sheet and financing
-- Total liquidity of GBP166.4m, comprising GBP15.4m cash and GBP151.0m
undrawn bank facility
GBPm
---------------------------------------------------- ------
Cash at 31 January 2022 41.3
Realisation Proceeds 48.8
Third Party Fund drawdowns (27.9)
High Conviction Investments (31.2)
Shareholder returns (4.1)
FX and other (11.3)
---------------------------------------------------- ------
Cash at 30 April 2022 15.4
---------------------------------------------------- ------
Available undrawn debt facilities 151.0
---------------------------------------------------- ------
Cash and undrawn debt facilities (total available
liquidity) 166.4
---------------------------------------------------- ------
-- Portfolio represented 103.1% of net assets
GBPm % of net assets
-------------------------- ------- ---------------
Total Portfolio 1,243.7 103.1%
Cash 15.4 1.3.%
Net current liabilities (52.6) (4.4%)
-------------------------- ------- ---------------
Net assets 1,206.5 100%
-------------------------- ------- ---------------
-- Undrawn commitments of GBP491.9m, of which 19.1% (GBP93.9m) were to funds
outside of their investment period
DIVID
-- Maintaining a progressive dividend policy
-- First quarter dividend of 7p per share
-- In the absence of any unforeseen circumstances, it is the Board's current
intention to declare total dividends of at least 30p per share for the
financial year ended 31 January 2023. This would represent an increase of
3p (11.1%) per share compared to the financial year ended 31 January 2022
ACTIVITY SINCE THE QUARTER (TO 31 MAY 2022)
-- Total Proceeds of GBP45.0m
-- New investments of GBP4.8m, 14.6% into High Conviction Investments
-- Post period-end, we increased the size of our Revolving Credit Facility
("RCF") to EUR240m (from EUR200m previously), in keeping with the
Company's higher net asset value. In addition, the maturity of the RCF
was also extended by one year to February 2026. The other key terms
remain unchanged. The RCF is available for general corporate purposes,
including short-term financing of investments such as the Drawdown on
Commitments to funds
BOARD CHANGES
-- Adiba Ighodaro and Janine Nicholls have been appointed as Non-Executive
Directors of the Company, and will join the Board on 1 July 2022
-- Sandra Pajarola has retired from the Board, effective 28 June 2022,
having served as a Non-Executive Director of the Company for nine years
ICG Private Equity Fund Investments Team
28 June 2022
SUPPLEMENTARY INFORMATION
Top 30 companies
The table below presents the 30 companies in which ICG
Enterprise Trust had the largest investments by value at 30 April
2022.
Year of Value as a %
Company Manager investment Country of Portfolio
----------------------------------------------------------- ----------- ----------- -------- -------------
1 PetSmart+
United
Retailer of pet products and services BC Partners 2015 States 3.5%
2 Minimax+
Supplier of fire protection systems and services ICG 2018 Germany 2.7%
3 IRI+
Provider of mission-critical data and predictive analytics New United
to consumer goods manufacturers Mountain 2018 States 2.6%
4 Yudo+
Designer and manufacturer of hot runner systems ICG 2017 / 2018 South Korea 2.1%
5 Leaf Home Solutions
United
Provider of home maintenance services Gridiron 2016 States 1.9%
6 DOC Generici+
Manufacturer of generic pharmaceutical products ICG 2019 Italy 1.6%
7 Endeavor Schools+
Leeds United
Provider of private schooling Equity 2018 States 1.6%
8 Froneri+
United
Manufacturer and distributor of ice cream products PAI 2013 / 2019 Kingdom 1.5%
9 Visma+
Provider of business management software and outsourcing Hg Capital
services / ICG 2017 / 2020 Norway 1.3%
10 AML RightSource+
Provider of compliance and regulatory services and United
solutions Gridiron 2020 States 1.2%
11 DomusVI+
Operator of retirement homes ICG 2017 / 2021 France 1.2%
12 David Lloyd Leisure+
United
Operator of premium health clubs TDR 2013 / 2020 Kingdom 1.2%
13 DigiCert+
United
Provider of enterprise internet security solutions ICG 2021 States 1.2%
14 Newton+
United
Provider of management consulting services ICG 2021 / 2022 Kingdom 1.2%
15 Ambassador Theatre Group+
ICG / United
Operator of theatres and ticketing platforms Providence 2021 Kingdom 1.1%
Year of Value as a %
Company Manager investment Country of Portfolio
------------------------------------------------------- ----------------- ----------- ------------ -------------
16 Curium Pharma+
Supplier of nuclear medicine diagnostic pharmaceuticals ICG 2020 United Kingdom 1.1%
17 Ivanti
Provider of IT management solutions Charlesbank / ICG 2021 United States 1.1%
18 PSB Academy+
Provider of private tertiary education ICG 2018 Singapore 1.0%
19 Planet Payment+
Provider of integrated payments services focused on
hospitality and luxury retail Advent / Eurazeo 2021 Ireland 1.0%
20 Class Valuation+
Provider of residential mortgage appraisal management
services Gridiron 2021 United States 0.8%
21 European Camping Group+
Operator of premium campsites and holiday parks PAI 2021 France 0.8%
22 Precisely
Provider of enterprise software ICG 2021 United States 0.8%
23 MoMo Online Mobile Services
Operator of remittance and payment services via mobile
e-wallet ICG 2019 Vietnam 0.7%
24 Brooks Automation+
Provider of semiconductor manufacturing solutions Thomas H. Lee 2021 / 2022 United States 0.7%
25 Davies Group+
Specialty business process outsourcing service provider BC Partners 2021 United Kingdom 0.7%
26 RegEd+
Provider of SaaS-based governance, risk and compliance
enterprise software solutions Gryphon 2018 / 2019 United States 0.7%
27 Crucial Learning+
Provider of corporate training courses focused on
communication skills and leadership development Leeds Equity 2019 United States 0.6%
28 Travel Nurse Across America
Provider of travel nurse staffing services Gridiron 2016 United States 0.6%
29 AMEOS Group+
Operator of private hospitals ICG 2021 Switzerland 0.6%
30 nGAGE
Provider of recruitment services Graphite 2014 United Kingdom 0.5%
------------------------------------------------------- ----------------- ---------------- -------------
Total of the 30 largest underlying investments 38.0%
----------------------------------------------------------------------------------------------------- -------------
+ All or part of this investment is held directly as a
Co-investment or other Direct Investment
30 largest fund investments
The table below presents the 30 largest funds by value at 30
April 2022. The valuations are net of underlying managers' fees and
Carried Interest.
Outstanding
Year of Country/ commitment
Fund commitment region Value GBPm GBPm
--------------- -------------- -------------- ---------- ------------
ICG Ludgate
1 Hill I
Secondary Europe/North
portfolio 2021 America 43.1 13.8
ICG Strategic
Equity Fund
2 III
Secondary fund
restructurings 2018 Global 37.5 11.0
Graphite
Capital
3 Partners VIII
Mid-market
buyouts 2013 UK 36.6 4.4
4 ICG Europe VII
Mezzanine and
equity in
mid-market
buyouts 2018 Europe 34.8 10.1
Gridiron
Capital Fund
5 III
Mid-market
buyouts 2016 North America 31.4 4.3
CVC European
Equity Partners
6 VII
Europe/North
Large buyouts 2017 America 27.3 2.1
CVC European
Equity Partners
7 VI
Europe/North
Large buyouts 2013 America 25.2 2.1
Thomas H Lee
Equity Fund
8 VIII
Mid-market and
large buyouts 2017 North America 21.3 3.6
Sixth Cinven
9 Fund
Large buyouts 2016 Europe 20.5 1.3
ICG LP
Secondaries
10 Fund I
Secondary Europe/North
portfolio 2023 America 19.3 13.2
BC European
11 Capital IX
Mid-market and Europe/North
large buyouts 2011 America 19.1 0.7
PAI Strategic
12 Partnerships
Mid-market and
large buyouts 2019 Europe 18.8 0.6
New Mountain
13 Partners V
Mid-market
buyouts 2017 North America 18.1 1.0
14 Advent IX
Europe/North
Large buyouts 2019 America 17.2 3.8
15 Permira V
Europe/North
Large buyouts 2013 America 17.0 0.4
16 Oak Hill V
Mid-market
buyouts 2019 North America 17.0 1.8
Gridiron
Capital Fund
17 IV
Mid-market
buyouts 2019 North America 17.0 2.8
BC European
18 Capital X
Large buyouts 2016 Europe 16.9 2.5
Outstanding
Year of Country/ commitment
Fund commitment region Value GBPm GBPm
--------------- ------------ ------------- ---------- ---------------
19 Resolute IV
Mid-market
buyouts 2018 North America 16.4 1.7
Advent Global
Private Equity
20 VIII
Europe/North
Large buyouts 2016 America 16.4 0.0
ICG Strategic
21 Equity Fund IV
Secondary fund
restructurings 2021 Global 16.2 18.6
22 TDR Capital III
Mid-market and
large buyouts 2013 Europe 15.3 1.6
23 PAI Europe VI
Mid-market and
large buyouts 2013 Europe 15.2 1.3
24 Gryphon V
Mid-market
buyouts 2019 North America 14.0 1.9
ICG Augusta
Partners
25 Co-Investor
Secondary fund
restructurings 2018 Global 13.8 18.9
ICG Ludgate
26 Hill II
Secondary
portfolio 2022 North America 13.3 5.7
27 PAI Europe VII
Mid-market and
large buyouts 2017 Europe 13.3 10.3
Resolute II
Continuation
28 Fund
Secondary fund
restructurings 2018 North America 12.8 2.2
29 AEA VII
Mid-market
buyouts 2019 North America 12.2 4.1
Leeds Equity
30 Partners VI
Mid-market
buyouts 2017 North America 11.8 1.0
Total of the largest 30 fund investments 608.8 146.6
Percentage of total investment Portfolio 49.0%
-------------------------------------------- ---------- ---------------
Portfolio at 30 April 2022
All data is presented on a look-through basis to the investment
portfolio held by the Company, consistent with the commentary in
previous annual and interim reports
Portfolio by calendar year of
investment % of value of underlying investments
-------------------------------------- ------------------------------------
2022 3.7%
2021 25.5%
2020 11.8%
2019 15.5%
2018 17.2%
2017 9.1%
2016 5.4%
2015 5.0%
2014 and older 6.8%
-------------------------------------- ------------------------------------
Total 100.0%
-------------------------------------- ------------------------------------
Portfolio by sector % of value of underlying investments
---------------------------- ------------------------------------
TMT 24.1%
Consumer goods and services 19.5%
Healthcare 15.9%
Business services 12.3%
Industrials 8.4%
Financials 5.5%
Education 5.4%
Leisure 4.2%
Other 4.7%
---------------------------- ------------------------------------
Total 100.0%
---------------------------- ------------------------------------
% of value of
Portfolio by geographic distribution based on location underlying
of company headquarters investments
------------------------------------------------------- ---------------------
North America 42.3%
Europe 30.6%
Other 27.1%
Total 100.0%
------------------------------------------------------- -------------------
(END) Dow Jones Newswires
June 28, 2022 09:30 ET (13:30 GMT)
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