TIDMICGT 
 
   17 June 2020 
 
   ICG Enterprise Trust Plc 
 
   Quarterly Update 
 
   For the 3 months to 30 April 2020 
 
   FOCUS ON DEFENSIVE GROWTH DRIVES RESILIENT PERFORMANCE IN THE QUARTER 
 
   Highlights 
 
 
   -- NAV per share of 1,100p; a total return of -4.1% 
 
   -- Investment portfolio return of -3.8% 
 
   -- Resilient performance reflects our focus on defensive growth 
 
   -- Q1 dividend declared of 5.0p 
 
 
 
 
   Business review 
 
   Resilient performance with single digit decline in Portfolio valuation 
 
 
   -- Investment Portfolio valued at GBP774m1 
 
          -- Return of -3.8% on the Investment Portfolio; -7.0% in local 
             currency 
 
          -- High conviction investments (42% of Portfolio). 
 
                 -- Underlying fall in local currency valuations of less than 
                    3% 
 
                 -- Significant bias to defensive sectors or investments that 
                    benefit from structural downside protection 
 
          -- Top 30 companies (46% of Portfolio) weighted towards high 
             conviction investments 
 
                 -- A number of the Top 30 investments are continuing to trade 
                    well 
 
          -- Third party funds portfolio (58% of Portfolio) 
 
                 -- Underlying fall in local currency valuation of 10% 
 
                 -- Portfolio is focused on top tier managers in the mid-market 
                    and large segment of the market. 
 
          -- Portfolio performance during the first quarter of the year is 
             encouraging given the sharp decline seen in public markets 
 
                 -- We anticipate the impact from COVID-19 on global economic 
                    activity and on company valuations will continue to weigh 
                    on valuations in the coming months 
 
 
 
   Portfolio is well positioned in current environment 
 
 
   -- The majority of Portfolio falls into a low to moderate range when 
      assessing the impact of COVID-19 
 
          -- Detailed assessment covered 84% of the Portfolio and is based on 
             discussions we with the underlying managers and a review of recent 
             financial performance and liquidity of the underlying companies 
 
          -- Portfolio is well balanced across a range of developed markets and 
             has large exposures to more resilient sectors such as healthcare 
             and education (24%), business services (14%) and technology (15%). 
 
          -- Exposure to Industrials (15%) and Consumer (16%) sectors with 
             higher potential impact of COVID-19, is concentrated in 'High 
             Conviction' investments with defensive characteristics and in a 
             number of cases, structural downside protection. 
 
                 -- Limited exposure to energy and financials 
 
          -- We continue to closely monitor the impact of global macroeconomic 
             events on our Portfolio and are in regular contact with our third 
             party managers and colleagues at ICG 
 
   -- 10 full realisations in the quarter with GBP34m of proceeds received (4% 
      of opening portfolio value). 
 
          -- Majority of the proceeds derived from transactions agreed before 
             the impact of the COVID-19 pandemic had become apparent 
 
          -- Full realisations were at a 7% uplift to carrying value and at an 
             average of a 2.1x multiple of cost 
 
                 -- Largest realisation was French vinyl floor manufacturer, 
                    Gerflor, from ICG funds, generating total proceeds in the 
                    period of GBP6m 
 
          -- GBP5m received from the completion of a secondary sale at a 
             premium to the underlying manager's valuation 
 
          -- We continue to actively manage the Portfolio, drawing on the 
             team's significant expertise in the secondary market 
 
 
   Continued cash generation and uplifts 
 
   Selective new commitments 
 
 
   -- GBP32m of new investments in the quarter 
 
          -- All new investment cashflows related to drawdowns on existing 
             commitments with no new co-investment or secondary activity 
 
   -- GBP13m new primary commitments to two funds in the quarter 
 
          -- EUR10m (GBP9m) commitment to Apax X, a global buyout fund, focused 
             on the Technology & Telecoms, Services, Healthcare, and Consumer 
             sectors 
 
          -- $5m (GBP4m) commitment to Hg Saturn 2, a fund managed by Hg 
             Capital. 
 
 
 
   Signs of slowdown in activity since quarter end(2) 
 
 
   -- Further GBP5m of proceeds received since the quarter end and GBP1m of new 
      investment, both significantly below the trend observed in recent years. 
 
          -- We believe that the level of drawdowns and new realisations are 
             likely to remain low over the next 3-6 months before returning to 
             a normal pace as economic activity begins to recover 
 
   The balance sheet remains robust 
 
 
   -- Closing net asset value of GBP757m; investment Portfolio represents 102% 
      of net asset value 
 
   -- During the quarter GBP40m was drawn down from the bank facility as a 
      precautionary short term liquidity measure 
 
   -- Gross cash balance of GBP49m (GBP9m cash, GBP40m drawn from facility); 
      uncalled commitments of GBP451m 
 
          -- GBP164m total liquidity (including GBP40m drawn and GBP115m 
             undrawn bank facility) 
 
          -- GBP91m of commitments outside their investment periods. 
 
 
   Q1 dividend of 5.0p 
 
 
   -- Q1 interim quarterly dividend of 5.0p declared 
 
          -- Maintained at Q1 2019 level 
 
          -- Will be paid 4 September 2020 
 
          -- The ex-dividend date will be 13 August 2020 and the record date 14 
             August 2020 
 
 
   Significant outperformance of public markets over the medium and long 
term 
 
 
   -- The Company continues out-performed the FTSE All Share Index over 1,3, 5 
      and 10 years in terms of both its NAV growth and share price growth. 
 
 
 
 
Performance to 30 April      3 months  1 year  3 years  5 years  10* years 
--------------------------   --------  ------  -------  -------  --------- 
Net asset value per share 
 (TR)                           -4.1%   +5.0%   +34.1%   +76.7%    +177.9% 
Share price (TR)               -23.4%  -14.3%    +8.1%   +46.7%    +181.8% 
FTSE All-Share Index (TR)      -18.8%  -16.7%    -7.5%    +4.8%     +61.1% 
---------------------------  --------  ------  -------  -------  --------- 
 
 
 
   * As the Company changed its year end in 2010, the 10-year figures are 
for the 121 month period to 30 April 2020. 
 
   Oliver Gardey, Head of Private Equity Fund Investments, ICG, commented: 
 
   "We are encouraged by the resilience shown by the Portfolio in the first 
quarter of the year, with the majority of our portfolio companies 
expected to experience only short term headwinds or to be minimally 
impacted by the COVID-19 pandemic and its economic fallout. We note a 
number of our portfolio companies are performing well as their business 
models have adapted to current market conditions. We are also seeing the 
benefits of the private equity model in more challenged investments, 
where the ability to react quickly and decisively to the changing 
economic environment is now more vital than ever. 
 
 
 
   Our investment approach means that we have built a Portfolio that is 
focused almost exclusively on buy-outs in developed markets and has 
minimal exposure to early stage investments or sectors such as 
financials and energy. Our focus on top tier managers with experience of 
managing through cycles gives the portfolio access to strong in-house 
operating capabilities and dedicated support in areas such as managing 
liquidity and financing, which we believe means they are well placed to 
manage through current market volatility. 
 
 
 
   We are pleased with the seamless transition of our team's remote working 
capabilities which has allowed our business operations to continue 
uninterrupted during these challenging times; our staff are the most 
important part of the business and we are still taking the necessary 
actions to protect them. Having navigated the initial stages of the 
crisis, our focus is on actively managing the Portfolio and remaining 
nimble. While in the short term, we do not expect to see significant new 
investment activity, when markets stabilise we are well placed to 
benefit from more favourable entry valuations and take advantage of the 
opportunities as they arise" 
 
 
 
   Enquiries Analyst / Investor enquiries:  +44 (0) 20 3201 7700 
 
   Oliver Gardey, Head of Private Equity Fund Investments, ICG 
 
   Colm Walsh, Managing Director, ICG 
 
   Ian Stanlake, Investor Relations, ICG 
 
 
 
   Media: 
 
   Alicia Wyllie, Co-Head of Corporate Communications, ICG   +44 (0) 20 
3201 7994 
 
   Ed Gascoigne Pees, Eddie Livingstone-Learmonth, Camarco  +44 (0) 20 3757 
4993 
 
   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 30 April 2020. 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  DomusVi + 
 Operator of retirement homes                                         ICG          2017            France       3.9% 
  2  PetSmart + 
                                                                       BC 
 Retailer of pet products and services                           Partners          2015               USA       3.4% 
  3  Minimax + 
 Supplier of fire protection systems and services                     ICG          2018           Germany       3.0% 
  4  City & County Healthcare Group 
                                                                 Graphite 
 Provider of home care services                                   Capital          2013                UK       2.6% 
  5  Leaf Home Solutions 
 Provider of gutter protection solutions                         Gridiron          2016               USA       2.5% 
  6  Roompot + 
                                                                      PAI 
 Operator and developer of holiday parks                         Partners          2016       Netherlands       2.1% 
  7  Yudo + 
 Manufacturer of components for injection moulding                    ICG          2018         Hong Kong       1.9% 
  8  Visma + 
 Provider of accounting software and accounting outsourcing 
  services                                                            ICG          2017            Norway       1.9% 
  9  Doc Generici + 
 Retailer of pharmaceutical products                                  ICG          2019             Italy       1.8% 
 10  Supporting Education Group +^ 
 Provider of temporary staff for the education sector                 ICG          2014                UK       1.8% 
 11  Froneri^ 
                                                                      PAI 
 Manufacturer and distributor of ice cream products              Partners          2019                UK       1.8% 
 12  IRI + 
 Provider of data and predictive analytics to consumer                New 
  goods manufacturers                                            Mountain          2018               USA       1.5% 
 13  System One + 
                                                                 Thomas H 
                                                                      Lee 
 Provider of specialty workforce solutions                       Partners          2016               USA       1.5% 
 14  Endeavor Schools + 
                                                                    Leeds 
                                                                   Equity 
 Operator of schools                                             Partners          2018               USA       1.4% 
 15  nGAGE 
                                                                 Graphite 
 Provider of recruitment services                                 Capital          2014                UK       1.3% 
 16  Beck & Pollitzer 
 Provider of industrial machinery installation and               Graphite 
  relocation                                                      Capital          2016                UK       1.2% 
 17  Berlin Packaging + 
                                                                 Oak Hill 
                                                                  Capital 
 Provider of global packaging services and supplies              Partners          2019               USA       1.2% 
 18  YSC 
 Provider of leadership consulting and management assessment     Graphite 
  services                                                        Capital          2017                UK       1.2% 
 19  ICR Group 
 Provider of repair and maintenance services to the              Graphite 
  energy industry                                                 Capital          2014                UK       1.2% 
 20  VitalSmarts + 
                                                                    Leeds 
 Provider of corporate training courses focused on                 Equity 
  communication skills and leadership development                Partners          2019               USA       1.1% 
 21  U-POL^ 
 Manufacturer and distributor of automotive refinishing          Graphite 
  products                                                        Capital          2010                UK       1.0% 
 22  PSB Academy + 
 Provider of private tertiary education                               ICG          2018         Singapore       1.0% 
 23  Compass Community 
 Provider of fostering services and children residential         Graphite 
  care                                                            Capital          2017                UK       0.9% 
 24  David Lloyd Leisure + 
                                                                      TDR 
 Operator of premium health clubs                                 Capital          2013                UK       0.8% 
 25  Cognito +^ 
                                                                 Graphite 
 Supplier of communications equipment, software & services        Capital   2002 & 2014                UK       0.7% 
 26  EG Group 
                                                                      TDR 
 Operator of petrol station forecourts                            Capital          2014                UK       0.7% 
 27  Alerian^ 
 Provider of data and investment products focused on 
  natural resources                                                   ICG          2018               USA       0.7% 
 28  TeamViewer 
 Provider of secure remote support and online meeting 
  software                                                        Permira          2014           Germany       0.6% 
 29  RegEd + 
 Provider of regulatory compliance and management software        Gryphon 
  products                                                      Investors          2019               USA       0.6% 
 30  Ceridian + 
                                                                 Thomas H 
                                                                      Lee 
 Provider of payroll and human capital software                  Partners          2007               USA       0.6% 
 ------------------------------------------------------------  ----------                ----------------  --------- 
 Total of the 30 largest underlying investments                                                                45.9% 
 ----------------------------------------------------------------------------------------------------      --------- 
 
 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 30 April 2020 are: 
 
 
 
 
                                                                               Outstanding 
                                          Year of                       Value  commitment 
     Fund                              commitment      Country/ region  GBPm      GBPm 
     -------------------------  -----------------  -------------------  -----  ----------- 
     Graphite Capital Partners 
  1  VIII * 
 Mid-market buyouts                      2013                       UK   69.3         14.7 
  2  Gridiron Capital Fund III 
 Mid-market buyouts                      2016            North America   24.6          4.5 
     CVC European Equity 
  3  Partners VI 
 Large buyouts                           2013               Europe/USA   18.5          3.0 
  4  ICG Europe VI ** 
 Mezzanine and equity in 
  mid-market buyouts                     2015                   Europe   18.2          3.4 
  5  ICG Europe VII 
 Mezzanine and equity in 
  mid-market buyouts                     2018                   Europe   15.9         21.3 
     Thomas H Lee Equity Fund 
  6  VII 
 Mid-market and large 
  buyouts                                2015                      USA   15.9          1.6 
     ICG Strategic Secondaries 
  7  Fund II 
 Secondary fund 
  restructurings                         2016               Europe/USA   15.7         14.6 
  8  BC European Capital IX ** 
 Large buyouts                           2011               Europe/USA   15.6          1.5 
  9  PAI Europe VI 
 Mid-market and large 
  buyouts                                2013                   Europe   15.3          1.6 
     PAI Strategic 
 10  Partnerships ** 
 Mid-market and large 
  buyouts                                2019                   Europe   14.9          1.6 
 11  Sixth Cinven Fund 
 Large buyouts                           2016                   Europe   13.9          4.3 
     Graphite Capital Partners 
 12  VII * / ** 
 Mid-market buyouts                      2007                       UK   13.7          2.8 
     Advent Global Private 
 13  Equity VIII 
 Large buyouts                           2016               Europe/USA   13.1          0.9 
 14  Silverfleet II 
 Mid-market buyouts                      2014                   Europe   13.1          1.0 
 15  One Equity Partners VI 
 Mid-market buyouts                      2016               Europe/USA   11.7          0.9 
 16  BC European Capital X 
 Large buyouts                           2016                   Europe   11.5          2.1 
 17  Permira V 
 Large buyouts                           2013               Europe/USA   11.3          0.9 
 18  TDR Capital III 
 Mid-market and large 
  buyouts                                2013                   Europe   10.5          1.6 
     CVC European Equity 
 19  Partners VII 
 Large buyouts                           2017     Europe/North America   10.4         10.4 
 20  Gryphon V 
 Mid-market buyouts                      2019            North America   10.4          2.1 
 21  ICG Asia Pacific Fund III 
 Mezzanine and equity in 
  midmarket buyouts                      2016             Asia Pacific   10.1          2.8 
 22  Resolute II ** 
 Mid-market buyouts                      2018                      USA    9.5          1.9 
 23  Activa Capital Fund III 
 Mid-market buyouts                      2013                   France    9.2          0.9 
     Oak Hill Capital Partners 
 24  IV 
 Mid-market buyouts                      2017                      USA    8.7          2.8 
 25  New Mountain Partners V 
 Mid-market buyouts                      2017            North America    8.7          3.8 
 26  IK VIII 
 Mid-market buyouts                      2016                   Europe    8.4          0.8 
 27  Permira VI 
 Large buyouts                           2016                   Europe    8.1          0.9 
 28  Resolute IV 
 Mid-market buyouts                      2018                      USA    7.8          5.6 
 29  Bain Capital Europe IV 
 Mid-market buyouts                      2014                   Europe    7.5          0.6 
     Charterhouse Capital 
 30  Partners X 
 Large buyouts                           2015                   Europe    7.5          5.9 
 Total of the largest 30 fund investments                               429.0        120.8 
 Percentage of total investment Portfolio                               55.4% 
 -----------------------------------------------------------------      -----  ----------- 
 * 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 
 ICG                                     22.9% 
Third party co-investments                   14.1% 
Third party secondary investments             5.2% 
Total High Conviction investments            42.2% 
Third party primary funds                    57.8% 
----------------------------------  -------------- 
Total                                       100.0% 
----------------------------------  -------------- 
 
 
 
 
 
 
 
Portfolio by investment type                   % of value of underlying investments 
--------------------------------------------  -------------------------------------- 
Large buyouts                                                                  47.0% 
Mid-market buyouts                                                             40.0% 
Small buyouts                                                                  10.3% 
Other                                                                           2.7% 
--------------------------------------------  -------------------------------------- 
Total                                                                         100.0% 
--------------------------------------------  -------------------------------------- 
 
  Portfolio by calendar year of investment        % of value of underlying investments 
--------------------------------------------  ---------------------------------------- 
2020                                                                              1.8% 
2019                                                                             19.5% 
2018                                                                             20.3% 
2017                                                                             18.6% 
2016                                                                             14.7% 
2015                                                                              7.4% 
2014                                                                              8.2% 
2013                                                                              5.0% 
2012                                                                              1.3% 
2011                                                                              0.1% 
2010                                                                              1.4% 
2009                                                                              0.6% 
2008                                                                              0.0% 
2007                                                                              0.8% 
2006 and before                                                                   0.3% 
--------------------------------------------  ---------------------------------------- 
Total                                                                           100.0% 
--------------------------------------------  ---------------------------------------- 
 
 
 
 
 
 
 
 
 
Portfolio by sector            % of value of underlying investments 
----------------------------   ------------------------------------ 
Healthcare and education                                      23.9% 
Consumer goods and services                                   15.8% 
TMT                                                           14.7% 
Industrials                                                   14.5% 
Business Services                                             14.3% 
Leisure                                                        6.6% 
Financials                                                     6.0% 
Other                                                          4.2% 
Total                                                        100.0% 
-----------------------------  ------------------------------------ 
 
 
 
 
 
 
Portfolio by geographic distribution based on location 
 of Company headquarters                                    % of value of underlying investments 
Europe                                                                                     36.0% 
North America                                                                              32.3% 
UK                                                                                         24.8% 
Rest of world                                                                               6.9% 
--------------------------------------------------------  -------------------------------------- 
Total                                                                                     100.0% 
--------------------------------------------------------  -------------------------------------- 
 
 
   Balance sheet information 
 
   The summary balance sheet at 30 April 2020 is set out below. 
 
 
 
 
                                                  31 January 
                 30 April 2020                       2020 
                                --------------                  -------------- 
                                   % of net                        % of net 
                     GBPm           assets           GBPm           assets 
---------------  -------------  --------------  --------------  -------------- 
Total portfolio          773.9          102.3%           806.4          101.6% 
Cash and liquid 
 assets                   48.9            6.5%            14.5            1.8% 
Bank facility 
 repayable              (40.0)          (5.3)%             0.0            0.0% 
Other net 
 current 
 liabilities            (26.2)          (3.5%)          (27.4)          (3.4)% 
                 -------------  --------------  --------------  -------------- 
Net assets               756.6          100.0%           793.5          100.0% 
 
 
 
 
 
 
 Movement in the portfolio                                        30 April 
 GBPm                                                                   20 
 ---------------------------------------------------------  -------------- 
 Opening Portfolio*                                                  806.4 
  Third-party funds portfolio drawdowns                               25.9 
  High conviction investments -- ICG funds, secondary 
   investments and co-investments                                      6.2 
                                                            -------------- 
 Total new investment                                                 32.1 
 Realisation Proceeds                                               (33.8) 
                                                            -------------- 
 Net cash (inflow)/outflow                                           (1.7) 
 Underlying Valuation Movement**                                    (56.2) 
 Currency movement                                                    25.4 
 Closing Portfolio*                                                  773.9 
                                                            -------------- 
 % underlying Portfolio growth (local currency)                     (7.0)% 
 % currency movement                                                  3.2% 
                                                            -------------- 
 % underlying Portfolio growth (Sterling)                           (3.8%) 
                                                            -------------- 
 
   ** 84% of the Portfolio is valued using 31 March 2020 
   (or later) valuations (31 Jan 20: 95%). 
 
 Movement in liquid assets 
                                                             3 months 30 
GBPm                                                            April 20 
----------------------------------------------------------  ------------ 
Additions                                                         (32.1) 
Cash proceeds generated by the portfolio (including 
 income)                                                            33.8 
                                                            ------------ 
Net cash generated by the investment portfolio                       1.7 
Drawn from credit facility                                          40.0 
Non-investment cash flows                                          33.3) 
Effect of changes in foreign exchange rates                          0.2 
                                                            ------------ 
Cash inflow before shareholder distributions                        38.6 
Dividends paid to shareholders                                     (3.4) 
Share buy backs                                                    (0.8) 
                                                            ------------ 
Net cash movement                                                   34.4 
Opening cash and liquid assets                                      14.5 
                                                            ------------ 
Closing cash and liquid assets                                      48.9 
Bank facility repayable                                           (40.0) 
                                                            ------------ 
Closing net cash position                                            8.9 
                                                            ------------ 
 
 
 
 
 
 
Uncalled commitment coverage 
                                            30 April 
                                               2020         31 January 
                                               GBPm               2020 
                                           ----------- 
                                                                  GBPm 
-----------------------------------------  -----------  -------------- 
Cash and liquid assets                            48.9            14.5 
Undrawn bank facility                            114.9           147.8 
-----------------------------------------  -----------  -------------- 
Total liquidity                                  163.8           162.3 
 
Outstanding commitments                          451.0           458.6 
Less: Total liquidity                          (163.8)         (162.3) 
-----------------------------------------  -----------  -------------- 
Over-commitment                                  287.2           296.3 
Over-commitment as % of net assets               38.0%           37.3% 
                    Original  Outstanding      Average 
 Total undrawn    commitment   commitment     drawdown              % of 
 commitments         GBP'000      GBP'000   percentage       commitments 
 --------------  -----------  -----------  -----------  ---------------- 
 Investment 
  period not 
  commenced                -            -         0.0%              0.0% 
 Funds in 
  investment 
  period             544,331      360,448        33.8%             79.9% 
 Funds post 
  investment 
  period             862,149       90,541        89.5%             20.1% 
 --------------  -----------  -----------  -----------  ---------------- 
 Total             1,406,480      450,989        67.9%            100.0% 
 --------------  -----------  -----------  -----------  ---------------- 
 
 
 
   (1) 84% of the Portfolio is valued using 31 March 2020 (or later) 
valuations from underlying managers. 
 
   (2) As at 31 May 2020 
 
 
 
 
 
 

(END) Dow Jones Newswires

June 17, 2020 09:00 ET (13:00 GMT)

Copyright (c) 2020 Dow Jones & Company, Inc.
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