TIDMICGT
ICG Enterprise Trust plc
27 June 2023
Q1 update for the three months ended 30 April 2023
NAV per Share of 1,876p
Highlights
-- Portfolio continuing to grow on underlying basis;
strengthening of Sterling impacting Sterling returns
-- NAV per Share of 1,876p (31 January 2023: 1,903p);
NAV per Share Total Return of (1.1)% during the
quarter and 8.3% over the last twelve months (5 year
annualised: 16.2%)
-- Portfolio Return on a Local Currency Basis of 0.5%
during the quarter and 10.2% on an LTM basis (5 year
annualised: 18.6%)
-- Balance sheet strength and Portfolio performance
enabling us to make GBP72m of new fund Commitments
(including GBP42m to ICG-managed funds)
-- Proceeds of GBP68m, including from the sale of
Endeavor Schools (previously our third largest
portfolio company). 10 Full Exits completed, at a
weighted average Uplift to Carrying Value of 20%
-- First quarter dividend of 8p per share (Q1 FY23: 7p).
Board intends to pay total dividends of at least 32p
per share for FY24 (FY23: 30p)
-- GBP7.1m returned so far via share buybacks at
weighted average discount to last reported NAV of
41.0% since programme initiated in October 20221
(1) Up to and including 23 June 2023
PERFORMANCE OVERVIEW
Annualised
----------------------------------------------
Performance
to 30 April
2023 3 months 1 year 3 years 5 years 10 years
------------ --------------- --------------- -------------- -------------- --------------
Portfolio
Return on a
Local
Currency
Basis 0.5 % 10.2 % 23.6 % 18.6 % 13.1 %
NAV per
Share Total
Return (1.1) % 8.3 % 21.6 % 16.2 % 13.6 %
Share Price
Total
Return (7.3) % (2.2) % 15.9 % 7.1 % 10.8 %
FTSE
All-Share
Index Total
Return 1.9 % 6.0 % 13.2 % 4.4 % 6.1 %
Portfolio
activity
overview for
Q1 FY24 Primary Direct Secondary Total ICG-managed
------------ -------------- --------------- --------------- --------------- --------------
Portfolio
Return on a
Local
Currency
Basis 1.7 % (1.4) % (0.5) % 0.5 % 0.4 %
Portfolio
Return in
Sterling 0.8% (2.4%) (2.0%) (0.6%) (0.9%)
New
Investments GBP18m GBP5m GBP2m GBP25m GBP4m
Proceeds GBP31m GBP31m GBP6m GBP68m GBP10m
New fund
Commitments GBP51m -- GBP20m GBP72m GBP42m
------------ -------------- --------------- --------------- --------------- --------------
Closing
Portfolio
value GBP754m GBP349m GBP252m GBP1,354m GBP401m
% Total
Portfolio 55.7 % 25.7 % 18.6 % 100.0 % 29.6 %
ENQUIRIES
Institutional investors and analysts: Chris Hunt, Head of
Shareholder Relations, ICG: +44 (0) 20 3545 2000
Media: Clare Glynn, Corporate Communications, ICG: +44 (0) 20
3545 1395
www.icg-enterprise.co.uk
COMPANY TIMETABLE
FY23 Final Dividend FY24 First Interim Dividend
Ex-dividend date 6 July 2023 17 August 2023
Record date 7 July 2023 18 August 2023
Dividend payment date 21 July 2023 1 September 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,
cash-generative private companies, primarily in Europe and the US,
while offering the added benefit to shareholders of daily
liquidity.
We invest in companies directly as well as through funds managed
by Intermediate Capital Group ('ICG') and other leading private
equity managers who focus on creating long-term value and building
sustainable growth through active management and strategic
change.
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 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
The information contained herein and on the pages that follow
does not constitute an offer to sell, or the solicitation of an
offer to acquire or subscribe for, any securities in any
jurisdiction where such an offer or solicitation is unlawful or
would impose any unfulfilled registration, qualification,
publication or approval requirements on ICG Enterprise Trust PLC
(the "Company") or its affiliates or agents. Equity securities in
the Company have not been and will not be registered under the
applicable securities laws of the United States, Australia, Canada,
Japan or South Africa (each an "Excluded Jurisdiction"). The equity
securities in the Company referred to herein and on the pages that
follow may not be offered or sold within an Excluded Jurisdiction,
or to any U.S. person ("U.S. Person") as defined in Regulation S
under the U.S. Securities Act of 1933, as amended (the "U.S.
Securities Act"), or to any national, resident or citizen of an
Excluded Jurisdiction.
The information on the pages that follow may contain forward
looking statements. Any statement other than a statement of
historical fact is a forward looking statement. Actual results may
differ materially from those expressed or implied by any forward
looking statement. The Company does not undertake any obligation to
update or revise any forward looking statements. You should not
place undue reliance on any forward looking statement, which speaks
only as of the date of its issuance.
MANAGER'S REVIEW
Our investment strategy
We focus on investing in buyouts of profitable, cash-generative
businesses in developed markets that exhibit defensive growth
characteristics which might support strong and resilient returns
across economic cycles.
We take an active approach to portfolio construction, with a
flexible mandate that enables us to deploy capital in Primary,
Secondary and Direct investments. Geographically we focus on the
developed markets of North America and Europe, including the UK,
which have deep and mature private equity markets supported by a
robust corporate governance framework.
Medium-term target Five-year average Q1 FY24
------------------------------ ------------------ ----------------- -------
1. Target Portfolio
composition (1)
Investment category
------------------------------
Primary 50% 59% 56%
Direct 25% 27% 26%
Secondary 25% 14% 19%
Geography(2)
------------------------------
North America 50% 37% 42%
Europe (inc. UK) 50% 63% 51%
2. Balance sheet
(Net cash)/net debt(3) 0% (3)% 1%
1 As percentage of Portfolio; 2 Excludes Other geographical
exposure (30 April 2023: 7%); 3 (Net cash)/net debt
as a percentage of NAV
Investments managed by ICG accounted for 29.6% of the
Portfolio.
Performance overview
-- At 30 April 2023, our Portfolio was valued at GBP1,354m, and the
Portfolio Return on a Local Currency Basis for the quarter was 0.5%. In
Sterling terms the Portfolio value reduced by 0.6%
-- The net result was that ICG Enterprise Trust generated a NAV per Share
Total Return of (1.1)% during the quarter, ending the period with a NAV
per Share of 1,876p
-- Over the last five years, ICG Enterprise Trust has generated an
annualised NAV per Share Total Return of 16.2%
Movement in the Portfolio Three months to 30 April 2023
----------------------------------------------- -----------------------------
Opening Portfolio GBP1,406m
Total New Investments GBP25m
Total Proceeds GBP(68)m
Net (proceeds)/investments GBP(44)m
Valuation movement(1) GBP7m
Currency movement GBP(16)m
----------------------------------------------- -----------------------------
Closing Portfolio GBP1,354m
----------------------------------------------- -----------------------------
% Portfolio growth (local currency) 0.5 %
% currency movement (1.1) %
----------------------------------------------- -----------------------------
% Portfolio growth (Sterling) (0.6) %
Impact of (net cash)/net debt (0.1) %
Expenses and other income (0.6) %
Co-investment Incentive Scheme Accrual -- %
Impact of share buybacks and dividend
reinvestment 0.2 %
----------------------------------------------- -----------------------------
NAV per Share Total Return (1.1) %
----------------------------------------------- -----------------------------
1. 80% of the Portfolio is valued using 31 March 2023 (or later) valuations
(Q1 FY23: 83%). All fund valuations converted to GBP at 30 April 2023 FX
rate
Quoted company exposure
-- We do not actively invest in publicly quoted companies but gain listed
investment exposure when IPOs are used as a route to exit an investment.
In these cases, exit timing typically lies with the manager with whom we
have invested
-- At 30 April 2023, ICG Enterprise Trust's exposure to quoted companies was
valued at GBP96m, equivalent to 7.1% of the Portfolio value (31 January
2023: 7.8%). There was one quoted investment that individually accounted
for 0.5% or more of the Portfolio value:
30 April 2023 % of
Company Ticker Portfolio value
----------------------------------------- --------------- ---------------------
Chewy (part of PetSmart)(1) CHWY-US 2.8 %
Other companies 4.3 %
---------------------------------------------------------- ---------------------
Total 7.1 %
---------------------------------------------------------- ---------------------
1 Value includes entire holding of PetSmart and Chewy.
Majority of value is within Chewy
Realisation activity
-- Total Realisation proceeds of GBP68m during the quarter
-- 10 Full Exits completed during the quarter, at a weighted average Uplift
to Carrying Value of 20% and a 4.2x Multiple to Cost. This included the
sale of Endeavor Schools, announced on 2 February 2023, which at 31
January 2023 was our third largest portfolio company
New investment activity
-- Total New Investment of GBP25m during the quarter, of which 16% (GBP4m)
was alongside ICG
-- The split of Total New Investment was split by category as follows:
Investment Category Cost % of New Investments
-------------------- --------- --------------------
Primary GBP17.5m 71 %
-------------------- --------- --------------------
Direct GBP4.8m 20 %
Secondary GBP2.2m 9 %
-------------------- --------- --------------------
Total GBP24.5m 100 %
-------------------- --------- --------------------
-- The GBP5m of direct investments were all follow-on investments in
existing portfolio companies
Commitments
-- We made five new fund Commitments totalling GBP72m during the quarter,
including GBP42m in aggregate to two ICG-managed funds
Fund Manager Focus Commitment during the
period
--------------- --------------- --------------- ---------------------------
Local currency GBP
ICG Europe ICG Mezzanine and EUR25.0m GBP22.0m
Mid-Market II equity in
mid-market
buyouts
ICG Strategic ICG GP-led $25.0m GBP20.3m
Equity V secondary
transactions
Cinven VIII Cinven Mid-market and EUR15.0m GBP13.2m
large buyouts
Hellman Hellman & Large buyouts $10.0m GBP8.0m
Friedman XI Friedman
Audax Private Audax Group Mid-market $10.0m GBP8.0m
Equity VII buyouts
-- At 30 April 2023 we had Total Undrawn Commitments of GBP419m to funds in
their investment period and a further GBP126m to funds outside their
investment period
Liquidity
-- During the period there was particular volatility in certain areas of the
banking sector, and as a prudent approach to risk management we drew down
a portion of our RCF. Both our cash and debt positions at the period end
were therefore higher than they would be in the normal course of
business. Our net debt position and gearing were unaffected
-- At 30 April 2023 we had a cash balance of GBP87m (31 January 2023:
GBP21m) and drawn debt of GBP102m (31 January 2023: GBP65m). As a result,
we had net debt of GBP15m. As previously announced, at 26 May 2023 net
debt was GBP13m
-- Total available liquidity at 30 April 2023 was GBP195m
-- As announced on 1 June 2023, ICG Enterprise Trust entered into a new
EUR240m revolving credit facility (RCF) which was effective from 31 May
2023. This replaced the previous EUR240m facility, and extended the
maturity of the Company's financing facility by one year, through to 30
May 2027. Terms of the new RCF were outlined in the announcement of 1
June 2023
GBPm
-------------------------------------------------- ------
Cash at 31 January 2023 20.7
Realisation Proceeds 68.1
New investments (24.5)
Debt drawn down 37.6
Shareholder returns (8.0)
Management fees (3.5)
FX and other expenses (3.0)
-------------------------------------------------- ------
Cash at 30 April 2023 87.4
-------------------------------------------------- ------
Available undrawn debt facilities 108.0
-------------------------------------------------- ------
Cash and undrawn debt facilities (total available
liquidity) 195.4
-------------------------------------------------- ------
-- At 30 April 2023 the Portfolio represented 106.1% of net assets (31
January 2022: 108.1%)
GBPm % of net assets
--------------------------------------- ----- ---------------
Portfolio 1,354 106.1 %
Cash 87 6.8 %
Drawn debt (102) (8.0) %
Co-investment Incentive Scheme Accrual (58) (4.6) %
Other net current liabilities (4) (0.3) %
--------------------------------------- ----- ---------------
Net assets 1,276 100.0 %
--------------------------------------- ----- ---------------
Dividend and share buyback
-- Progressive dividend policy maintained: first quarter dividend of 8p per
share (Q1 FY23: 7p)
-- In the absence of any unforeseen circumstances, it is the Board's current
intention to declare total dividends of at least 32p per share for the
financial year ended 31 January 2024. This would represent an increase of
2p (6.7%) per share compared to the financial year ended 31 January 2023
-- The following purchases have been made under the Company's long-term
share buyback programme:
Q1 FY24 Since 19 October 2022(1)
------------------------------------ -------------- ------------------------
Number of shares purchased 280,698 632,178
------------------------------------ -------------- ------------------------
Aggregate consideration GBP3.1m GBP7.1m
------------------------------------ -------------- ------------------------
Weighted average discount to last
reported NAV 42.0 % 41.0 %
------------------------------------ -------------- ------------------------
(1) Being the date the long-term share buyback programme was
announced, up to and including 23 June 2023
Activity since the period end
Notable activity between 1 May 2023 and 31 May 2023 has
included:
-- Realisation Proceeds of GBP13m
-- New investments of GBP6m
ICG Private Equity Fund Investments Team
27 June 2023
(END) Dow Jones Newswires
June 27, 2023 09:00 ET (13:00 GMT)
Copyright (c) 2023 Dow Jones & Company, Inc.
Icg Enterprise (LSE:ICGT)
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