27th Jun 2019 15:30
ICG Enterprise Trust Plc: Quarterly Update for the three months to 30 April 2019
27 June 2019ICG ENTERPRISE TRUST PLCQuarterly UpdateFor the three months to 30 April 2019
Highlights
NAV per share of 1,068.2p; total return of 1.6% in the quarter Continued strong performance across the portfolioPortfolio remains cash generativeThree new primary commitments during the quarterNAV and share price continue to outperform FTSE All-ShareStrong performance across the portfolio
Investment portfolio valued at £703.4m1 2.3% portfolio return for the quarter; 2.8% on a constant currency basisPerformance driven by both write-ups in high conviction and third-party funds portfolio and realisationsRealisations outweighed new investment
12 full realisations in the quarter; £27.7m of proceeds received Realisations continue to be at an uplift to carrying value and cost £20.3m of new investment in the quarter High conviction investments (ICG directly controlled investments, third-party co-investments and secondary investments) represented 23% of capital deployedHigh conviction investments represent 41% of investment portfolio - focus remains on defensive growth, structural downside protection and relative value £44.0m new primary commitments during the quarter, including two new US manager relationships (Gryphon and AEA Investors) $15m (£11.5m) late primary commitment to Gryphon V. Late primary - fund was already 48% invested at the time the commitment was made. $20m (£15.3m) commitment to AEA VII, a mid-market buyout fund with a North American focus€20m (£17.2m) commitment to the seventh Cinven fund; focused on large European buyoutsContinued activity since quarter end
Further £12.6m of proceeds received since the quarter end2; realisations continue at uplifts to carrying value€15m (£13.2m) primary commitment made to Advent IX, a fund seeking control buyouts primarily in Europe and North America Closing net asset value of £738.7m; investment portfolio represents 95% of net asset valueOur liquidity position was strengthened during the quarter following the refinancing of the bank facility in April 2019. The facility size was increased to €176m (£151.4m) reflecting the growth in the level of commitments since the facility was last refinanced.Cash balance of £61.5m; uncalled commitments of £443.4m £212.9m total liquidity (including £151.4m undrawn bank facility)Strong balance sheet
Dividend
Q1 interim quarterly dividend of 5.0p declared Will be paid on 6 September 2019The ex-dividend date will be 15 August 2019 and the record date 16 August 2019Consistent strong performance The performance of the Company remains strong over the short, medium and long term
| Performance to 30 April 2019 | 3 months | 1 year | 3 years | 5 years | 10* years | |
| Net asset value per share | +1.6% | +12.4% | +53.2% | +74.6% | +187.0% | |
| Share price | +7.7% | +5.6% | +76.5% | +77.4% | +542.5% | |
| FTSE All-Share Index | +7.8% | +2.6% | +33.3% | +35.2% | +194.5% | |
| * As the Company changed its year end in 2010, the ten-year figures are for the 121 month period to 30 April 2019.Emma Osborne, Head of Private Equity Fund Investments, ICG, commented: “We are pleased with the performance of the portfolio in what is typically a quarter in which managers tend not to revalue unrealised investments significantly. All parts of the portfolio contributed to growth, and the portfolio remains cash generative with several full and partial realisations in the three months. We remain highly selective in redeploying capital and have a strong pipeline of new opportunities, and the portfolio is well positioned to continue to generate shareholder value.” Enquiries Analyst / Investor enquiries: +44 (0) 20 3201 7700 Emma Osborne, Head of Private Equity Fund Investments, ICG Owen Jones, Investor Relations, ICG Media:Alicia Wyllie, Co-Head of Corporate Communications, ICG +44 (0) 20 3201 7994Vikki Kosmalska, Associate Partner, Maitland +44 (0) 20 7379 5151Disclaimer 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. This report contains information which, prior to this announcement, was inside information. | ||||||
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 2019. 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.
| Company | Manager | Year of investment | Country | Value as a % of Portfolio | |
| 1 | DomusVi+ | ||||
| Operator of retirement homes | ICG | 2017 | France | 3.7% | |
| 2 | City & County Healthcare Group | ||||
| Provider of home care services | Graphite Capital | 2013 | UK | 3.3% | |
| 3 | Minimax+ | ||||
| Supplier of fire protection systems and services | ICG | 2018 | Germany | 2.7% | |
| 4 | Visma+ | ||||
| Provider of accounting software and accounting outsourcing services | Cinven / ICG | 2014 / 2017 | Europe | 2.5% | |
| 5 | Froneri+^ | ||||
| Manufacturer and distributor of ice cream products | PAI Partners | 2013 | UK | 2.4% | |
| 6 | Yudo+ | ||||
| Manufacturer of components for injection moulding | ICG | 2018 | South Korea | 2.3% | |
| 7 | Roompot+ | ||||
| Operator and developer of holiday parks | PAI Partners | 2016 | Netherlands | 2.2% | |
| 8 | nGAGE | ||||
| Provider of recruitment services | Graphite Capital | 2014 | UK | 2.0% | |
| 9 | Ceridian+ | ||||
| Provider of payroll and human capital software | Thomas H Lee Partners | 2007 | USA | 1.9% | |
| 10 | Beck & Pollitzer | ||||
| Provider of industrial machinery installation and relocation | Graphite Capital | 2016 | UK | 1.9% | |
| 11 | ICR Group | ||||
| Provider of repair and maintenance services to the energy industry | Graphite Capital | 2014 | UK | 1.9% | |
| 12 | Education Personnel+^ | ||||
| Provider of temporary staff for the education sector | ICG | 2014 | UK | 1.8% | |
| 13 | System One+ | ||||
| Provider of specialty workforce solutions | Thomas H Lee Partners | 2016 | USA | 1.7% | |
| 14 | IRI+ | ||||
| Provider of data and predictive analytics to consumer goods manufacturers | New Mountain | 2018 | USA | 1.6% | |
| 15 | Gerflor^ | ||||
| Manufacturer of vinyl flooring | ICG | 2011 | France | 1.5% | |
| 16 | PetSmart+ | ||||
| Retailer of pet products and services | BC Partners | 2015 | USA | 1.4% | |
| 17 | YSC | ||||
| Provider of leadership consulting and management assessment services | Graphite Capital | 2017 | UK | 1.3% | |
| 18 | Endeavor Schools+ | ||||
| Operator of schools | Leeds Equity Partners | 2018 | USA | 1.3% | |
| 19 | PSB Academy+ | ||||
| Provider of private tertiary education | ICG | 2018 | Singapore | 0.9% | |
| 20 | U-POL^ | ||||
| Manufacturer and distributor of automotive refinishing products | Graphite Capital | 2010 | UK | 0.9% | |
| 21 | Cognito+^ | ||||
| Supplier of communications equipment, software & services | Graphite Capital | 2002 / 2014 | UK | 0.8% | |
| 22 | Abode Healthcare+ | ||||
| Provider of hospice and healthcare services | Tailwind Capital | 2018 | USA | 0.8% | |
| 23 | Compass Community | ||||
| Provider of fostering services and children residential care | Graphite Capital | 2017 | UK | 0.8% | |
| 24 | David Lloyd Leisure+ | ||||
| Operator of premium health clubs | TDR Capital | 2013 | UK | 0.7% | |
| 25 | LeafFilter | ||||
| Provider of gutter protection solutions | Gridiron | 2016 | USA | 0.7% | |
| 26 | Random42 | ||||
| Provider of medical animation and digital media services | Graphite Capital | 2017 | UK | 0.7% | |
| 27 | New World Trading Company | ||||
| Operator of distinctive pub restaurants | Graphite Capital | 2016 | UK | 0.7% | |
| 28 | Skillsoft+ | ||||
| Provider of off the shelf e-learning content | Charterhouse | 2014 | USA | 0.6% | |
| 29 | Drew Marine^ | ||||
| Manufacturer of advanced performance chemicals and safety solutions | Jordan Company | 2013 | USA | 0.6% | |
| 30 | Alerian^ | ||||
| Provider of data and investment products focused on natural resources | ICG | 2018 | USA | 0.6% | |
| Total of the 30 largest underlying investments | 46.2% | ||||
| ⁺ 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 2019 are:
| Fund | Year of commitment | Country/ region | Value £m | Outstanding commitment £m | |
| 1 | Graphite Capital Partners VIII * | ||||
| Mid-market buyouts | 2013 | UK | 88.6 | 16.9 | |
| 2 | ICG Europe VI ** | ||||
| Mezzanine and equity in mid-market buyouts | 2015 | Europe | 18.5 | 4.3 | |
| 3 | CVC European Equity Partners VI | ||||
| Large buyouts | 2013 | Europe/USA | 17.8 | 3.5 | |
| 4 | BC European Capital IX ** | ||||
| Large buyouts | 2011 | Europe/USA | 15.2 | 0.5 | |
| 5 | PAI Europe VI | ||||
| Mid-market and large buyouts | 2013 | Europe | 14.9 | - | |
| 6 | Thomas H Lee Equity Fund VII | ||||
| Mid-market and large buyouts | 2015 | USA | 14.5 | 3.1 | |
| 7 | One Equity Partners VI | ||||
| Mid-market buyouts | 2016 | Europe/USA | 14.5 | 1.1 | |
| 8 | Gridiron Capital Fund III | ||||
| Mid-market buyouts | 2016 | North America | 13.4 | 4.9 | |
| 9 | ICG Strategic Secondaries Fund II | ||||
| Secondary fund restructurings | 2016 | Europe/USA | 13.2 | 16.1 | |
| 10 | Activa Capital Fund III | ||||
| Mid-market buyouts | 2013 | France | 12.5 | 1.8 | |
| 11 | Graphite Capital Partners VII * / ** | ||||
| Mid-market buyouts | 2007 | UK | 12.5 | 4.7 | |
| 12 | Advent Global Private Equity VIII | ||||
| Large buyouts | 2016 | Europe/USA | 12.1 | 2.6 | |
| 13 | Resolute II ** | ||||
| Mid-market buyouts | 2018 | USA | 11.4 | 2.4 | |
| 14 | CVC European Equity Partners V ** | ||||
| Large buyouts | 2008 | Europe/USA | 11.0 | 0.5 | |
| 15 | Permira V | ||||
| Large buyouts | 2013 | Europe/USA | 10.4 | 1.4 | |
| 16 | Sixth Cinven Fund | ||||
| Large buyouts | 2016 | Europe | 9.4 | 8.0 | |
| 17 | IK VII | ||||
| Mid-market buyouts | 2013 | Europe | 9.2 | 0.4 | |
| 18 | Fifth Cinven Fund | ||||
| Large buyouts | 2012 | Europe | 9.2 | 1.3 | |
| 19 | ICG Asia Pacific Fund III | ||||
| Mezzanine and equity in midmarket buyouts | 2016 | Asia Pacific | 8.9 | 3.4 | |
| 20 | TDR Capital III | ||||
| Mid-market and large buyouts | 2013 | Europe | 8.4 | 2.2 | |
| 21 | Nordic Capital Partners VIII | ||||
| Mid-market and large buyouts | 2013 | Europe | 8.0 | 1.4 | |
| 22 | Bowmark Capital Partners V | ||||
| Mid-market buyouts | 2013 | UK | 7.9 | 0.1 | |
| 23 | Hollyport Secondary Opportunities VI | ||||
| Tail-end secondary portfolios | 2017 | Global | 7.5 | 2.7 | |
| 24 | Bowmark Capital Partners IV | ||||
| Mid-market buyouts | 2007 | UK | 7.4 | - | |
| 25 | Silverfleet II | ||||
| Mid-market buyouts | 2014 | Europe | 7.3 | 4.7 | |
| 26 | IK VIII | ||||
| Mid-market buyouts | 2016 | Europe | 7.3 | 2.5 | |
| 27 | Deutsche Beteiligungs Fund VI | ||||
| Mid-market buyouts | 2012 | Germany | 6.8 | 0.8 | |
| 28 | ICG European Fund 2006 B** | ||||
| Mezzanine and equity in mid-market buyouts | 2014 | Europe | 6.7 | 2.1 | |
| 29 | Hollyport Secondary Opportunities V | ||||
| Tail-end secondary portfolios | 2015 | Global | 6.6 | 2.3 | |
| 30 | Bain Capital Europe IV | ||||
| Mid-market buyouts | 2014 | Europe | 6.4 | 1.8 | |
| Total of the largest 30 fund investments | 397.5 | 97.5 | |||
| Percentage of total investment Portfolio | 56.5% | ||||
| * 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 portfolioICG | 20.5% |
| Third party co-investments | 15.7% |
| Third party secondary investments | 5.0% |
| Total High Conviction investments | 41.2% |
| Third party funds portfolioGraphite Capital primary funds | 14.2% |
| Third party primary fundsTotal diversified fund investments | 44.6%58.8% |
| Total | 100.0% |
| Portfolio by investment type | % of value of underlying investments | ||||
| Large buyouts | 44.9% | ||||
| Mid-market buyouts | 46.5% | ||||
| Small buyouts | 5.3% | ||||
| Other | 3.3% | ||||
| Total | 100.0% | ||||
| Portfolio by calendar year of investment | % of value of underlying investments | ||||
| 2019 | 2.6% | ||||
| 2018 | 21.0% | ||||
| 2017 | 20.2% | ||||
| 2016 | 17.7% | ||||
| 2015 | 8.6% | ||||
| 2014 | 11.8% | ||||
| 2013 | 8.7% | ||||
| 2012 | 2.5% | ||||
| 2011 | 1.2% | ||||
| 2010 | 1.7% | ||||
| 2009 | 1.0% | ||||
| 2008 | 0.2% | ||||
| 2007 | 2.4% | ||||
| 2006 and before | 0.4% | ||||
| Total | 100.0% | ||||
| Portfolio by sector | % of value of underlying investments | |
| Healthcare and education | 21.2% | |
| Industrials | 20.6% | |
| Business services | 15.0% | |
| Consumer goods and services | 13.1% | |
| TMT | 12.1% | |
| Leisure | 8.6% | |
| Financials | 5.9% | |
| Other | 3.5% | |
| Total | 100.0% |
| Portfolio by geographic distribution based on location of Company headquarters | % of value of underlying investments | |
| UK | 30.7% | |
| North America | 26.5% | |
| Europe | 38.3% | |
| Rest of world | 4.5% | |
| Total | 100.0% |
Balance sheet information
The summary balance sheet at 30 April 2019 is set out below.
| 30 April 2019 | % of net assets | 31 January 2019 | % of net assets | |
| £m | £m | |||
| Total portfolio | 703.4 | 95.3% | 694.8 | 95.1% |
| Cash and liquid assets | 61.5 | 8.3% | 60.6 | 8.3% |
| Other net current liabilities | (26.2) | (3.6%) | (24.5) | (3.4)% |
| Net assets | 738.7 | 100.0% | 730.9 | 100.0% |
| Movement in the portfolio | 3 months | ||||||
| £m | 30 April 19 | ||||||
| Opening Portfolio* | 694.8 | ||||||
| Third-party funds portfolio drawdowns | 15.6 | ||||||
| High conviction investments – ICG funds, secondaryinvestments and co-investments | 4.7 | ||||||
| Total new investment | 20.3 | ||||||
| Realisation Proceeds | (27.7) | ||||||
| Net cash (inflow)/outflow | (7.4) | ||||||
| Underlying Valuation Movement** | 19.6 | ||||||
| Currency movement | (3.6) | ||||||
| Closing Portfolio* | 703.4 | ||||||
| % underlying Portfolio growth (local currency) | 2.8% | ||||||
| % currency movement | (0.5%) | ||||||
| % underlying Portfolio growth (Sterling) | 2.3% | ||||||
| ** 65% of the Portfolio is valued using 31 March 2019 (or later) valuations (31 Jan 19: 91%). | |||||||
| Movement in liquid assets | |||||||
| Additions2 | (20.3) | ||||||
| Cash proceeds generated by the portfolio (including income) | 27.7 | ||||||
| Net cash generated by the investment portfolio | 7.4 | ||||||
| Non-investment cash flows | (2.6) | ||||||
| Effect of changes in foreign exchange rates | (0.2) | ||||||
| Cash inflow before shareholder distributions | 4.6 | ||||||
| Dividends paid to shareholders | (3.5) | ||||||
| Share buy backs | (0.2) | ||||||
| Net cash movement | 0.9 | ||||||
| Opening cash and liquid assets | 60.6 | ||||||
| Closing cash and liquid assets | 61.5 | ||||||
| Uncalled commitment coverage | ||
| 30 April2019 | 31 January 2019 | |
| £m | £m | |
| Cash and liquid assets | 61.5 | 60.6 |
| Undrawn bank facility | 151.4 | 103.9 |
| Total liquidity | 212.9 | 164.5 |
| Outstanding commitments | 443.4 | 411.2 |
| Less: Total liquidity | (212.9) | (164.5) |
| Over-commitment | 230.5 | 246.7 |
| Over-commitment as % of net assets | 31.2% | 33.7% |
1 65% of the Portfolio is valued using 31 March 2019 (or later) valuations.
2 As at 31 May 2019
Related Shares:
ICG Enterprise Trust