TIDMICGT
ICG Enterprise Trust plc
21 June 2021
Q1 Update for the period to 30 April 2021
Highest ever quarter of Realisation Proceeds; twelve Full Exits
executed at 42% Uplift to Carrying Value
Highlights
-- NAV per Share of 1,402p, NAV per Share Total Return during the quarter of
1.6%1
-- Portfolio Return on a Local Currency Basis during the quarter of 3.4%1
(Sterling return: 2.2%)
-- Record Realisation Proceeds of GBP100m in the quarter, representing
approximately 70% of the average annual Realisation Proceeds for the last
five years
-- Twelve Full Exits generated 42%1 uplift to Carrying Value and 3.9x1
Multiple to Cost
-- GBP32m of investments made during the period, 63% into High Conviction
Investments including two Direct Investments
-- Substantial pipeline of further investment opportunities with a number
expected to close in the coming months, anticipating a very strong year
for High Conviction Investments
-- Recent realisation activity has resulted in expanded capacity to execute
on investment opportunities. Available liquidity of GBP290m, comprising
GBP116m of cash and GBP174m undrawn revolving credit facility
-- First quarter dividend of 6p per share for the quarter ended 30 April
2021, an increase of 1p compared to the quarter ended 30 April 2020. In
the absence of any unforeseen circumstances it is the Board's current
intention to declare total dividends of at least 27p per share for the
financial year ended 31 January 2022, an increase of 3p (12.5%) per share
compared to the financial year ended 31 January 2021
Comparison to prior periods
Performance to 30 April 2021 3 months 1 year 3 years 5 years 10 years
-------------------------------- -------- ------ ------- ------- --------
NAV per Share Total Return +1.6% +29.8% +53.1% +108.7% +199.9%
Share Price Total Return +12.8% +51.4% +37.0% +129.0% +265.9%
FTSE All-Share Index Total
Return +10.6% +25.9% +7.7% +39.9% +81.0%
12 months to 12 months to Quarter ended Quarter ended
30 April 2021 30 April 2020 30 April 2021 31 January 2021
Portfolio
Return on a
Local
Currency
Basis 37.0% 6.1% 3.4% 17.1%
NAV per
Share 1,402.2p 1,100.2p 1,402.2p 1,384.4p
NAV per
Share Total
Return 29.8% 5.0% 1.6% 11.8%
Realisation GBP208m GBP142m GBP100m GBP43m
Proceeds
Total New GBP139m GBP170m GBP32m GBP57m
Investment
Oliver Gardey, Head of Private Equity Fund Investments, ICG,
commented:
"We were pleased with the performance delivered by the Portfolio
in this quarter, generating a 3.4% Return on a Local Currency
Basis. This is despite the reduction in Chewy's share price during
the quarter which impacted the value of our largest single
investment. The performance of our Portfolio builds on the strong
track record of our investments, which over the last twelve months
have generated a Portfolio Return on a Local Currency Basis of
37.0%.
"In particular, I would highlight that the value of our
Portfolio was underpinned during the quarter by a record level of
realisations, generating GBP100m of proceeds. Twelve Full Exits
occurred and were executed at an average 42% Uplift to Carrying
Value, significantly above our five year historical average of 35%.
I believe that our long term track record of realising investments
at a material Uplift to Carrying Value underlines the substantial
value within our Portfolio.
"We expect to invest these proceeds in the coming quarters into
a number of exciting opportunities. Our long-standing relationships
in the sector and the opportunities we get by being managed by ICG
plc are strategic advantages in originating a large number of
investment opportunities. We remain selective and disciplined in
our investment approach as we navigate the current market
conditions.
"Looking ahead, we believe the quality and breadth of investment
opportunities we are seeing will lead to a very strong year of
deployment for our High Conviction Investments. Our Portfolio is
balanced by sector, geography and investment type, and we are well
positioned to continue executing our investment strategy. This is
an exciting time for ICG Enterprise Trust and I believe we are well
placed to continue to deliver significant long-term shareholder
value."
Enquiries
Analyst / Investor enquiries: +44 (0) 20 3545 2000
Oliver Gardey, Head of Private Equity Fund Investments, ICG
Colm Walsh, Managing Director, ICG
James Caddy, Investor Relations, ICG
Media:
Clare Glynn, Corporate Communications, ICG: +44 (0) 20 3545
1395
Ed Gascoigne Pees, Eddie Livingstone-Learmonth, Camarco: +44 (0)
20 3757 4993
Website:
www.icg-enterprise.co.uk
Company timetable
Ex-dividend date: 12 August 2021
Record date: 13 August 2021
Payment of dividend: 3 September 2021
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 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.
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
Solid performance across the Portfolio
-- Investment portfolio valued at GBP893m
-- Underlying Portfolio gains of GBP32m, comprising gains of GBP53m and
losses of GBP21m, resulting in a Portfolio Return on a Local Currency
Basis of 3.4%
-- High Conviction Investments (48% of the Portfolio) experienced local
currency returns of 0.5% during the quarter, or 4.3% when excluding the
decrease in value of our investment in in PetSmart/Chewy
-- Third Party Funds (52% of the Portfolio) generated 6.3% local currency
returns
-- Gains of GBP53m in the quarter were broad-based across our High
Conviction and Third Party Fund investments
-- The main driver of the GBP21m losses was the reduction in the share price
of Chewy, which is reflected in the valuation of the PetSmart/Chewy
investment. The decrease in Chewy's share price from $102 to $80 during
the period reduced the Portfolio value by circa GBP16m on a Local
Currency Basis and circa GBP17m on a Sterling basis. Excluding the impact
of PetSmart/Chewy on this quarter's performance, we estimate the
Portfolio Return on Local Currency Basis would have been circa 5.6%. ICG
Enterprise Trust's investment in PetSmart/Chewy has generated a
mid-to-high single digit multiple on cost at current valuations and
therefore significant value for our shareholders
-- Sterling's appreciation against the USD and EUR during the period
resulted in a GBP11m reduction in the Portfolio value on a Sterling basis
and therefore a Portfolio Return on a Sterling basis of 2.2%
Record Realisation Proceeds and at significant Uplift to
Carrying Value
-- Total Proceeds of GBP109m over the quarter, our most active quarter for
realisations on record
-- Realisation Proceeds of GBP100m, of which GBP77m was generated
from 12 Full Exits that were executed at an average of 42% Uplift
to Carrying Value and 3.9x Multiple to Cost, materially above our
five year historical average of 35% and 2.4x respectively
-- Fund Disposals generated GBP9m proceeds and released GBP10m of
Undrawn Commitments
Investment opportunities across High Conviction Investments and
Third Party Funds
-- GBP32m of Total New Investment in the quarter; 63% (GBP20m) invested into
High Conviction Investments with the remaining GBP12m being drawdowns on
commitments to Third Party Funds
-- Within our High Conviction Investments we invested GBP6m in two new
Direct Investments during the quarter:
Company Manager Company sector / ICG Enterprise Trust
description investment during the
quarter
----------- ----------- ------------------------- -------------------------
Ivanti Charlesbank Provider of enterprise IT GBP6m
software
----------- ----------- ------------------------- -------------------------
AMEOS Group ICG Private hospital operator n/a(1)
in the DACH region
----------- ----------- ------------------------- -------------------------
(1) Commitment made in April 2021 but not funded until after the
quarter end
-- Third Party Funds are important to our strategy of having an
appropriately balanced portfolio and to sourcing High Conviction
Investments. During the quarter we committed GBP83m in aggregate to two
ICG funds and two third party managers:
Fund Focus ICG Enterprise Trust
Commitment during the
quarter
------------------------- ------------------------- ------------------------
Resolute V North American mid-market $15m (GBP11m)
buyouts
------------------------- ------------------------- ------------------------
Bregal Unternehmerkapital European mid-market EUR10m (GBP9m)
III buyouts
------------------------- ------------------------- ------------------------
ICG Europe Fund VIII Mezzanine and equity in EUR40m (GBP35m)
mid-market buy-outs
------------------------- ------------------------- ------------------------
ICG Strategic Equity IV Secondary fund $40m (GBP29m)
restructurings
------------------------- ------------------------- ------------------------
Quoted Companies
-- We do not invest in publicly quoted companies but gain listed investment
exposure when IPOs are used to exit an investment
-- At 30 April 2021, we had 42 investments in quoted companies, representing
14.3% of the Portfolio value compared to 20.4% at 31 January 2021. The
reduction was largely driven by the sale of our entire stake in Telos
during February, as well as by the reduction in Chewy's share price
-- During the quarter Signify Health listed on the NYSE and therefore became
a quoted company within our Portfolio. It now represents 0.5% of our
Portfolio by value. The company provides technology-enabled healthcare
payor services, and we have exposure through our investment via New
Mountain V
-- At 30 April 2021 there were three quoted investments that individually
accounted for 0.5% or more of the Portfolio value:
Company Ticker % value of Portfolio
------- --------------------------- ------- --------------------
1 Chewy (part of PetSmart)(1) CHWY-US 8.2%
------- --------------------------- ------- --------------------
2 Allegro ALE-PL 0.9%
------- --------------------------- ------- --------------------
3 Signify Health SGFY-US 0.5%
------- --------------------------- ------- --------------------
Other 4.7%
------- --------------------------- ------- --------------------
Total 14.3%
------- --------------------------- ------- --------------------
(1) % value of Portfolio includes entire holding of
PetSmart and Chewy. This investment is referred to
generally within this announcement as PetSmart/Chewy.
Most of the value in this investment is within Chewy
-----------------------------------------------------------------
Robust balance sheet
-- Closing NAV of GBP964m; investment portfolio represents 93% of NAV
-- Strong liquidity position of GBP290m, comprising GBP116m cash and GBP174m
undrawn bank facility
-- Uncalled commitments of GBP473m (GBP87m of which are to funds outside of
their investment period)
Dividend
-- Continued commitment to progressive dividend in line with current policy
-- First quarter dividend of 6p per share for the quarter ended 30 April
2021, an increase of 1p compared to the quarter ended 30 April 2020. The
Board's current intention is to declare quarterly dividends of at least
6p per share, and a final dividend of at least 9p per share for the
financial year ended 31 January 2022
-- In the absence of any unforeseen circumstances, it is therefore the
Board's current intention to declare total dividends of at least 27p per
share for the financial year ended 31 January 2022. This would represent
an increase of 3p (12.5%) per share compared to the financial year ended
31 January 2021
Board
-- Lucinda Riches retires from the Board today having served for ten years.
We would like to thank Lucinda for her contributions to ICG Enterprise
Trust
-- David Warnock will replace Lucinda as the Senior Independent Director,
subject to his election at the forthcoming AGM
Activity since the period end (to 31 May 2021)
-- Total Proceeds
Proceeds of GBP5m received
-- Deployment
Invested GBP26m, 70% into High Conviction Investments
-- New Fund Commitments
Hellman & Friedman X, focused on large buyouts in North
America: $10m (GBP7m)
Thomas H. Lee Partners IX, focused on mid-market buyouts in
North America: $20m (GBP14m)
Supplementary information
The 30 largest underlying investments
The table below presents the 30 companies in which ICG
Enterprise Trust had the largest investments by value at 30 April
2021. 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 Portfolio.
Value as
Year of a % of
Company Manager investment Country Portfolio
----------------------------------------------------------- -------------- ----------- ------------ ---------
1 PetSmart/Chewy+^
Retailer of pet products and services BC Partners 2015 United States 8.2%
2 DomusVi+
Operator of retirement homes ICG 2017 France 4.1%
3 Minimax+
Supplier of fire protection systems and services ICG 2018 Germany 3.5%
4 IRI+
Provider of mission-critical data and predictive analytics New Mountain
to consumer goods manufacturers Capital 2018 United States 2.4%
5 Leaf Home Solutions
Gridiron
Provider of gutter protection solutions Capital 2016 United States 2.2%
6 Visma+
Provider of business management software and outsourcing ICG /
services HgCapital 2017 / 2020 Norway 2.2%
7 DOC Generici+
Retailer of pharmaceutical products ICG 2019 Italy 2.2%
8 Yudo+
Manufacturer of components for injection moulding ICG 2017 Hong Kong 2.0%
9 Supporting Education Group+^
Provider of temporary staff for the education sector ICG 2014 United Kingdom 1.9%
10 Froneri^
Manufacturer and distributor of ice cream products PAI Partners 2019 United Kingdom 1.8%
11 Berlin Packaging+
Oak Hill
Provider of global packaging services and supplies Capital 2018 United States 1.7%
12 Endeavor Schools+
Leeds Equity
Provider of paid private schooling Partners 2018 United States 1.5%
13 U-POL^
Manufacturer and distributor of automotive refinishing Graphite
products Capital 2010 United Kingdom 1.3%
14 PSB Academy+
Provider of private tertiary education ICG 2018 Singapore 1.1%
15 Curium Pharma+
Supplier of nuclear medicine diagnostic pharmaceuticals ICG 2020 United Kingdom 1.0%
16 Allegro
Cinven /
Operator of an online marketplace and price comparison Permira
website Advisers 2017 Poland 0.9%
17 VitalSmarts+
Provider of corporate training courses focused on Leeds Equity
communication skills and leadership development Partners 2019 United States 0.9%
18 AML RightSource+
Provider of compliance and regulatory services and Gridiron
solutions Capital 2020 United States 0.8%
19 David Lloyd Leisure+
Operator of premium health clubs TDR Capital 2013 / 2020 United Kingdom 0.7%
20 RegEd+
Provider of SaaS-based governance, risk and compliance Gryphon
enterprise software solutions Investors 2018 United States 0.6%
21 Ivanti+
Charlesbank
Capital
Provider of IT management solutions Partners 2021 United States 0.6%
22 IRIS Accountancy Solutions
Provider of business-critical software and services
for the accountancy and payroll sectors ICG 2018 United Kingdom 0.6%
23 EG Group
Operator of petrol station forecourts TDR Capital 2014 United Kingdom 0.6%
24 Compass Community
Provider of fostering services and children residential Graphite
care Capital 2017 United Kingdom 0.6%
25 CCC Information Services
Advent
International
/ Oak Hill
Provider of auto collision software and service Capital 2017 United States 0.5%
26 WCT^
The Jordan
Drug development services Company 2007 United States 0.5%
27 Trust Holding
Distributor of branded consumer electronics accessories
in the value-for-money segment Egeria 2018 Netherlands 0.5%
28 proALPHA
Developer and vendor of resource planning software ICG 2017 Germany 0.5%
29 Springer^
Publisher of professional and academic media BC Partners 2013 Germany 0.5%
30 Synlab
Operator of medical diagnostic laboratories Cinven 2015 Germany 0.5%
----------------------------------------------------------- -------------- ---------------- ---------
Total of the 30 largest underlying investments 46.4%
------------------------------------------------------------------------------------------------------ ---------
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 2021 are:
Outstanding
Value commitment
Fund Year of commitment Country/ region GBPm GBPm
---------------------- ------------------- --------------------- -------- -----------
BC European Capital IX
1 **
Large buyouts 2011 Europe/North America 39.8 2.0
2 ICG Europe VII
Mezzanine and equity
in mid-market
buyouts 2018 Europe 30.7 11.9
Gridiron Capital Fund
3 III
Mid-market buyouts 2016 North America 26.4 4.0
Graphite Capital
4 Partners VIII *
Mid-market buyouts 2013 UK 24.7 4.4
ICG Strategic Equities
5 Fund III
Secondary fund
restructurings 2018 Global 23.6 11.3
6 Sixth Cinven Fund
Large buyouts 2016 Europe 23.6 2.1
Advent Global Private
7 Equity VIII
Large buyouts 2016 Europe/North America 21.5 0.6
8 ICG Europe VI **
Mezzanine and equity
in mid-market
buyouts 2015 Europe 20.9 4.5
CVC European Equity
9 Partners VI
Large buyouts 2013 Europe/North America 20.7 2.6
CVC European Equity
10 Partners VII
Large buyouts 2017 Europe/North America 16.3 7.5
11 BC European Capital X
Large buyouts 2016 Europe 16.3 1.6
PAI Strategic
12 Partnerships **
Mid-market and large
buyouts 2019 Europe 15.7 0.6
13 One Equity Partners VI
Mid-market buyouts 2016 Europe/North America 15.4 0.6
Graphite Capital
14 Partners VII * / **
Mid-market buyouts 2007 UK 15.1 2.8
15 PAI Europe VI
Mid-market and large
buyouts 2013 Europe 14.9 1.4
16 Resolute IV
Mid-market buyouts 2018 North America 14.3 1.9
New Mountain Partners
17 V
Mid-market buyouts 2017 North America 14.2 1.3
Thomas H Lee Equity
18 Fund VIII
Mid-market and large
buyouts 2017 North America 13.2 7.5
19 Permira V
Large buyouts 2013 Europe/North America 12.7 0.5
20 Permira VI
Large buyouts 2016 Europe 12.0 2.0
21 Gryphon V
Mid-market buyouts 2019 North America 12.0 1.4
ICG Asia Pacific Fund
22 III
Mezzanine and equity
in mid-market
buyouts 2016 Asia Pacific 11.5 2.8
Charterhouse Capital
23 Partners X
Large buyouts 2015 Europe 10.9 3.9
24 TDR Capital III
Mid-market and large
buyouts 2013 Europe 10.8 1.6
Leeds Equity Partners
25 VI
Mid-market buyouts 2017 North America 10.5 0.7
26 Resolute II **
Mid-market buyouts 2018 North America 10.3 1.6
27 PAI Europe VII
Mid-market and large
buyouts 2017 Europe 10.1 12.1
Egeria Private Equity
28 Fund IV
Mid-market buyouts 2012 Netherlands 9.2 1.1
Thomas H Lee Equity
29 Fund VII
Mid-market and large
buyouts 2015 North America 8.9 1.6
Oak Hill Capital
30 Partners IV
Mid-market buyouts 2017 North America 8.3 0.7
Total of the largest 30 fund investments 494.6 98.6
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 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 % of portfolio
---------------------------------- --------------
High Conviction Investments
ICG funds and co-investments 26.8%
Third party co-investments 14.4%
Third party secondary investments 6.7%
Total High Conviction Investments 47.9%
Third Party Funds 52.1%
Total 100.0%
---------------------------------- --------------
Portfolio by investment type % of value of underlying investments
----------------------------- ------------------------------------
Large buyouts 53.9%
Mid-market buyouts 35.2%
Small buyouts 10.9%
Total 100.0%
----------------------------- ------------------------------------
Portfolio by calendar year of investment % of value of underlying investments
------------------------------------------- -------------------------------------
2021 2.6%
2020 11.8%
2019 19.5%
2018 20.9%
2017 17.0%
2016 8.5%
2015 10.0%
2014 and older 9.7%
-------------------------------------------- -------------------------------------
Total 100.0%
-------------------------------------------- -------------------------------------
Portfolio by sector % of value of underlying investments
---------------------------- ------------------------------------
Consumer goods and services 25.0%
Healthcare 18.9%
TMT 16.8%
Business services 12.1%
Industrials 8.1%
Education 6.7%
Financials 5.2%
Other 4.5%
Leisure 2.7%
Total 100.0%
----------------------------- ------------------------------------
Portfolio by geographic distribution based on location
of Company headquarters % of value of underlying investments
North America 39.7%
Europe 34.7%
UK 17.7%
Rest of world 7.9%
--------------------------------------------------------- -------------------------------------
Total 100.0%
--------------------------------------------------------- -------------------------------------
Summary balance sheet information
GBPm 30 April 21 % of net assets 31 January 21 % of net assets
Portfolio 892.8 92.6% 949.2 99.7%
Cash and liquid
assets 116.0 12.0% 45.2 4.7%
Other net
current
liabilities (44.6) (4.6%) (42.4) (4.4)%
----------- --------------- ------------- ---------------
Net assets 964.2 100.0% 952.0 100.0%
Movement in the Portfolio 3 months
GBPm 30 April 21
------------------------------------------------------ ---------------------
Opening Portfolio (31 January 2021) 949.2
Total New Investment 31.8
Total Proceeds (109.4)
---------------------
Net cash (inflow) / outflow (77.6)
Underlying Valuation Movement* 31.9
Currency movement (10.7)
Closing Portfolio 892.8
---------------------
% underlying Portfolio growth (local currency) 3.4%
% currency movement (1.2%)
---------------------
% underlying Portfolio growth (Sterling) 2.2%
---------------------
Expenses and other (0.6)%
---------------------
NAV per Share Total Return 1.6%
---------------------
* 82% of the Portfolio is valued using 31 March 2021
(or later) valuations. The remaining 18% is valued
using 31 December 2020 valuations.
Movement in liquid assets 3 months
GBPm 30 April 21
------------------------------------------------------- ---------------------
Net cash inflow / (outflow) generated by movement
in Portfolio 77.6
Non-investment cash flows (2.1)
Effect of changes in foreign exchange rates (1.3)
---------------------
Cash inflow before shareholder distributions 74.2
Dividends paid to shareholders (3.4)
Share buy backs -
---------------------
Net cash movement 70.8
Opening cash and liquid assets 45.2
---------------------
Closing cash and liquid assets 116.0
---------------------
Uncalled commitment coverage
GBPm 30 April 21 31 January 21
Cash and liquid assets 116.0 45.2
Undrawn bank facility 174.0 155.9
----------------------------------- ----------- -------------
Total liquidity 290.0 201.1
Outstanding commitments 473.3 418.5
Less: Total liquidity (290.0) (201.1)
----------------------------------- ----------- -------------
Over-commitment 183.3 217.4
Over-commitment as % of net assets 19.0% 22.8%
(1) Alternative Performance Measure
Attachment
-- 210621_ICGT Q1 FY22 RNS_FINAL
https://ml-eu.globenewswire.com/Resource/Download/0c045568-1724-4f88-acf4-e7e2c85df244
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