ICG Enterprise Trust Plc: Q3 Update for the three months ended 31 October 2023

ICG Enterprise Trust plc

1 February 2023

Q3 Update for the three months ended 31 October 2023

NAV per Share Total Return of 33.2% in the last 12 months,
strong momentum continuing

Highlights NAV per Share of 1,628p (31 July 2023: 1,523p), NAV per Share Total Return of 7.3%1 during the quarter; 33.2% during the last twelve months Portfolio Return on a Local Currency Basis during the quarter of 8.3%1 (Sterling return: 8.5%); 44.7% during the last twelve months. Portfolio valued at £1,090m on 31 October 2023 Realisation Proceeds of £90.0m during the quarter, including 27 Full Exits at a weighted-average of 40%1 Uplift to Carrying Value and 4.2x1 Multiple to Cost £75.2m of investments during the quarter, 40.1% into High Conviction Investments including £16.9m into two Direct Investments Third quarter dividend of 6p per share, taking total for the nine months to 31 October 2023 to 18p. Intention reaffirmed to declare total dividends of at least 27p per share in respect of the financial year ending 31 January 2023, which would represent an increase of 12.5% per share compared to the previous financial year Actively managed Portfolio well positioned to navigate dynamic market conditions

Oliver Gardey Head of Private Equity Fund Investments, ICG

This has been another very strong quarter for ICG Enterprise Trust, delivering NAV per share Total Return of 33.2% over the last twelve months. All parts of the business have produced good results, building on the continued positive momentum we reported for the first half of our financial year. The Portfolio return was broad-based, with our High Conviction investments generating an enhanced return on top of our diversified Third Party fund investments. This composition of growth underlines the benefits our shareholders receive from our active portfolio construction. Our LP secondaries programme is progressing well. The investment we made during the first half of this financial year is performing above expectations and we signed a second transaction after the end of the quarter covered in this report. Realisation and investment levels remain high. As we continue to benefit from realisations within the Portfolio, we are finding attractive opportunities to deploy our shareholders’ capital, particularly into new High Conviction investments. Looking ahead, we have an attractive and actively managed portfolio focussed on defensive growth and invested in high quality companies. The portfolio is well positioned to navigate dynamic market conditions, with balanced exposures across different vintages, sectors and countries. Activity remains robust and we have a healthy pipeline of both investments and realisations as we look to the fourth quarter of our financial year and beyond.

PERFORMANCE OVERVIEW

		Three months to:		Nine months to:		12 months to:
		31 Oct. 2023	31 Oct. 2020	31 Oct. 2023	31 Oct. 2020	31 Oct. 2023	31 Oct. 2020
Portfolio Return on a Local Currency Basis		8.3%	12.1%	23.8%	7.9%	44.7%	11.9%
NAV per Share Total Return		7.3%	10.7%	19.1%	9.6%	33.2%	11.1%
Realisation Proceeds		£90m	£72m	£265m	£94m	£308m	£127m
Total New Investment		£75m	£30m	£209m	£82m	£266m	£131m

				Annualised
	3 months	9 months	1 year	3 years	5 years	10 years
Performance to 31 October 2023
NAV per Share Total Return	7.3%	19.1%	33.2%	18.1%	17.1%	13.2%
Share Price Total Return	15.7%	31.6%	56.3%	17.7%	16.8%	15.4%
FTSE All-Share Index Total Return	3.5%	16.6%	35.4%	5.6%	5.6%	7.5%

ENQUIRIES

Investor / Analyst enquiries:

Oliver Gardey, Head of Private Equity Fund Investment, ICG: +44 (0) 20 3545 2000

Colm Walsh, Managing Director, Private Equity Fund Investments, ICG

Chris Hunt, Head of Shareholder Relations, ICG        

Media enquiries:

Clare Glynn, Corporate Communications, ICG: +44 (0) 20 3545 1395

Ed Gascoigne Pees, Georgina Whittle, Camarco: +44 (0) 20 3757 4987

Website:

www.icg-enterprise.co.uk

Company timetable

Ex-dividend date: 10 February 2023

Record date: 11 February 2023  

Payment of dividend: 4 March 2023  

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 performance

• Portfolio valued at £1,090m on 31 October 2023
• Portfolio Return on a Local Currency Basis of 8.3% during the quarter and 23.8% during the nine months to 31 October 2023
• High Conviction Investments (48.9% of the Portfolio) generated local currency returns of 9.3% during the quarter
• Third Party Funds (51.1% of the Portfolio) generated local currency returns of 7.3% during the quarter
• Gains were broad-based, including a number of successful Full Exits and Partial Realisations within the Portfolio
• Our portfolio of secondary investments performed particularly strongly during the quarter, and at 31 October 2023 secondary investments represented 17.0% of our Portfolio (31 July 2023: 12.0%)

Movement in the Portfolio to 31 October 2023	Three months £m	Nine months £m
Opening Portfolio	1,019.0	949.2
Total New Investments	75.2	208.5
Total Proceeds	(90.0)	(274.7)
Net cash (inflow)/outflow	(14.8)	(66.2)
Valuation movement*	84.2	225.8
Currency movement	1.9	(18.5)
Closing Portfolio	1,090.3	1,090.3
% Portfolio growth (local currency)	8.3%	23.8%
% currency movement	0.2%	(2.0)%
% Portfolio growth (Sterling)	8.5%	21.8%
Expenses and other	(1.2)%	(2.7)%
NAV per share Total Return	7.3%	19.1%
* 91% of the Portfolio is valued using 30 September 2023 (or later) valuations.

New investment and commitment activity

• £75.2m of Total New Investment in the quarter; 40.0% (£30.1m) invested into High Conviction Investments with the remaining 60.0% (£45.1m) being drawdowns on commitments to Third Party Funds
• This brings the Total New Investment in the nine months to 31 October to £208.5m, of which 63.1% (£131.6m) was into High Conviction Investments and 36.9% (£76.9m) was in the form of drawdowns from commitments to Third Party Funds
• Within the £30.1m of High Conviction Investments made during the quarter, we invested a total of £16.9m in two new Direct Investments:

Company	Manager	Company sector	Description	Investment
Davies Group	BC Partners	TMT	Provider of business outsourcing services to the insurance sector	£8.7m
Planet	Eurazeo / Advent	Financials	Provider of integrated payments services focused on hospitality and luxury retail	£8.2m

• The remaining £13.2m of High Conviction Investments made in the quarter were through ICG funds (£10.3m) and add-on investments for existing portfolio companies (£2.9m)
• We made no new commitments to Third Party Funds during the quarter

Realisation activity

• Realisation proceeds of £90.0m received during the quarter, of which £61.5m was generated from 27 Full Exits executed at an average of 40% Uplift to Carrying Value and 4.2x Multiple to Cost. This includes proceeds from the sale of U-POL that was announced in our H1 results
• For the nine months to 31 October 2023, Full Exits have been executed at an average of 30% Uplift to Carrying Value and 3.1x 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
• At 31 October 2023, we had 54 investments in quoted companies, representing 13.5% of the Portfolio (31 July 2023; 14.2%)
• There were five quoted investments that 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	6.2%
2	Olaplex	OLPX	0.9%
3	Allegro	ALE-WA	0.6%
4	Synlab	SYAB-F	0.6%
5	Autostore	AUTO.OL	0.5%
Other			4.7%
Total			13.5%
1 % value of Portfolio includes entire holding of PetSmart and Chewy. Majority of value is within Chewy

Balance sheet and financing

• Total liquidity of £246.9m, comprising £76.2m cash and £170.7m undrawn bank facility

	£m
Cash at 31 July 2023	69.5
Realisation Proceeds	90.0
Third Party Fund drawdowns	(45.1)
High Conviction Investments	(30.1)
Shareholder returns	(4.1)
FX and other	(4.0)
Cash at 31 October 2023	76.2
Available undrawn debt facilities	170.7
Cash and undrawn debt facilities (total available liquidity)	246.9

• Portfolio represented 97.7% of net assets

	£m	% of net assets
Total Portfolio	1,090.3	97.7%
Cash	76.2	6.8%
Current liabilities	(50.7)	(4.5)%
Net assets	1,115.8	100%

• Undrawn commitments of £442.5m, of which 22.7% (£100.3m) were to funds outside of their investment period

DIVIDEND

• Continued commitment to provide a progressive dividend in line with current policy
• Third quarter dividend of 6p per share, taking total for the nine months to 31 October 2023 to 18p. Intention reaffirmed to declare total dividends of at least 27p per share in respect of the financial year ending 31 January 2023, which would represent an increase of 12.5% per share compared to the previous financial year

ACTIVITY SINCE THE QUARTER END (TO 31 DECEMBER 2023)

• Total Proceeds of £61.7m
• New Investments of £47.2m, 36.3% into High Conviction Investments
• New Fund Commitments
  • ICG Ludgate Hill II: $20.0m (£15m) – secondary portfolio

ICG Private Equity Fund Investments Team
1 February 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 31 October 2023.

	Company	Manager	Year of investment	Country	Value as a % of Portfolio
1	PetSmart/Chewy+^
	Retailer of pet products and services	BC Partners	2015	United States	6.2%
2	Minimax+
	Supplier of fire protection systems and services	ICG	2018	Germany	3.0%
3	IRI+
	Provider of mission-critical data and predictive analytics to consumer goods manufacturers	New Mountain	2018	United States	2.9%
4	Leaf Home Solutions
	Provider of home maintenance services	Gridiron	2016	United States	2.0%
5	Yudo+
	Manufacturer of components for injection moulding	ICG	2017	Hong Kong	1.9%
6	DOC Generici+
	Distributor of pharmaceutical products	ICG	2019	Italy	1.8%
7	Berlin Packaging+
	Provider of global packaging services and supplies	Oak Hill	2018	United States	1.8%
8	Froneri+
	Manufacturer and distributor of ice cream products	PAI	2019	United Kingdom	1.7%
9	Visma+
	Provider of business management software and outsourcing services	ICG / HgCapital	2017 / 2020	Norway	1.6%
10	Endeavor Schools+
	Operator of private-pay schools	Leeds Equity	2018	United States	1.6%
11	David Lloyd Leisure+
	Operator of premium health clubs	TDR	2013 / 2020	United Kingdom	1.4%
12	DomusVi+
	Operator of retirement homes	ICG	2021	France	1.4%
13	AML RightSource+
	Provider of compliance and regulatory services and solutions	Gridiron	2020	United States	1.3%
14	Ivanti+
	Provider of IT management software solutions	Charlesbank	2021	United States	1.2%
15	PSB Academy+
	Provider of tertiary education	ICG	2018	Singapore	1.0%

	Company	Manager	Year of investment	Country	Value as a % of Portfolio
16	Davies Group +
	Provider of business outsourcing services to the insurance sector	BC Partners	2021	United Kingdom	0.9%
17	Olaplex
	Provider of hair care products	Advent	2020	United Kingdom	0.9%
18	DigiCert+
	Provider of enterprise security solutions	ICG	2021	United States	0.8%
19	Curium Pharma+
	Supplier of nuclear medicine diagnostic pharmaceuticals	ICG	2020	United Kingdom	0.8%
20	Class Valuation+
	Provider of residential mortgage appraisal management services	Gridiron	2021	United States	0.8%
21	RegEd+
	Provider of Saas-based governance, risk and compliance enterprise software solutions	Gryphon Investors	2018	United States	0.8%
22	Planet+
	Provider of integrated payments services focused on hospitality and luxury retail	Eurazeo / Advent	2021	Ireland	0.8%
23	Crucial Learning+ (fka VitalSmarts)
	Provider of corporate training courses focused on communication skills and leadership development	Leeds Equity	2019	United States	0.7%
24	AMEOS Group+
	Provider of health care services	ICG	2021	Switzerland	0.7%
25	Allegro
	Operator of an online marketplace and price comparison website	Cinven / Permira	2017	Poland	0.6%
26	Synlab
	Operator of medical diagnostic laboratories	Cinven	2015	Germany	0.6%
27	HSE24
	Home shopping network in Germany	ICG	2020	Germany	0.6%
28	AutoStore
	Designer and manufacturer of automated storage and retrieval systems	TH Lee	2019	Norway	0.5%
29	proALPHA
	Developer and vendor of resource planning software	ICG	2017	Germany	0.5%
30	IRIS
	Provider of business-critical software	ICG	2018	United Kingdom	0.5%
	Total of the 30 largest underlying investments				41.3%

+ 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        

30 largest fund investments
The table below presents the 30 largest funds by value at 31 October 2023. The valuations are net of underlying managers’ fees and Carried Interest.

	Fund	Year of commitment	Country/ region	Value £m	Outstanding commitment £m
1	ICG Ludgate Hill I
	Secondary portfolio	2021	Europe/North America	44.2	10.2
2	BC European Capital IX Mid-market and large buyouts	2011	Europe/North America	38.0	1.7
3	ICG Europe VII
	Mezzanine and equity in mid-market buyouts	2018	Europe	34.8	10.5
4	ICG Strategic Equities Fund III
	Secondary fund restructurings	2018	Global	33.2	10.1
5	Gridiron Capital Fund III
	Mid-market buyouts	2016	North America	26.9	4.0
6	Sixth Cinven Fund
	Large buyouts	2016	Europe	24.1	2.0
7	Graphite Capital Partners VIII
	Mid-market buyouts	2013	UK	23.7	3.1
8	Thomas H Lee Equity Fund VIII
	Mid-market and large buyouts	2017	North America	21.1	4.3
9	CVC European Equity Partners VI
	Large buyouts	2013	Europe/North America	20.0	2.6
10	CVC European Equity Partners VII
	Large buyouts	2017	Europe/North America	19.8	7.2
11	Advent Global Private Equity IX
	Large buyouts	2019	Europe/North America	19.0	5.5
12	Advent Global Private Equity VIII
	Large buyouts	2016	Europe/North America	18.0	0.6
13	PAI Strategic Partnerships
	Mid-market and large buyouts	2019	Europe	17.7	0.6
14	PAI Europe VI
	Mid-market and large buyouts	2013	Europe	17.3	1.4
15	BC European Capital X
	Mid-market and large buyouts	2016	Europe	17.3	0.6
16	TDR Capital III
	Mid-market and large buyouts	2013	Europe	15.8	1.6
17	PAI Europe VII
	Mid-market and large buyouts	2017	Europe	14.3	10.3
18	Gryphon V
	Mid-market buyouts	2019	North America	14.0	1.4

	Fund	Year of commitment	Country/ region	Value £m	Outstanding commitment £m
18	Gryphon V
	Mid-market buyouts	2019	North America	14.0	1.4
19	New Mountain Partners V
	Mid-market buyouts	2017	North America	13.7	1.5
20	Permira V
	Large buyouts	2013	Europe/North America	13.2	0.4
21	ICG Strategic Equity Fund IV
	Secondary fund restructurings	2021	Global	12.9	19.4
22	Gridiron Capital Fund IV
	Mid-market buyouts	2019	North America	12.9	4.2
23	Permira VI
	Large buyouts	2016	Europe	12.8	1.9
24	Resolute IV
	Mid-market buyouts	2018	North America	12.6	2.2
25	Charterhouse Capital Partners X
	Large buyouts	2015	Europe	11.9	3.8
26	Leeds Equity Partners VI
	Mid-market buyouts	2017	North America	10.8	0.8
27	Permira VII
	Large buyouts	2019	Global	10.4	3.6
28	ICG Strategic Secondaries II
	Secondary fund restructurings	2016	Europe/North America	9.9	15.2
29	One Equity Partners VI Mid-market buyouts	2016	Europe/North America	9.6	0.6
30	Resolute II Continuation Mid-market buyouts	2021	North America	9.5	–
	Total of the largest 30 fund investments			573.4	132.7
	Percentage of total investment Portfolio			52.6%

Portfolio at 31 October 2023
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

Investment category	£m	% of Portfolio
ICG managed investments	289.8	26.6%
Third party Direct Investments	185.2	17.0%
Third party Secondary Investments	58.1	5.3%
High Conviction Investments	533.1	48.9%
Third Party Funds	557.2	51.1%
Total	1,090.3	100%

Portfolio by calendar year of investment		% of value of underlying investments
2021		19.4%
2020		12.1%
2019		18.9%
2018		19.1%
2017		10.2%
2016		6.9%
2015		8.2%
2014 and older		5.2%
Total		100.0%

Portfolio by sector	% of value of underlying investments
Consumer goods and services	22.9%
TMT	20.2%
Healthcare	17.4%
Business services	13.8%
Industrials	8.9%
Education	5.4%
Financials	3.6%
Leisure	3.4%
Other	4.4%
Total	100.0%

Portfolio by geographic distribution based on location of company headquarters	% of value of underlying investments
North America	40.4%
Europe	31.4%
UK	19.4%
Rest of world	8.8%
Total	100.0%

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¹ Alternative Performance Measure

Attachment

• 220201_ICGT 31 October 2023 Result_FINAL