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9 October 2017
ICG ENTERPRISE TRUST PLC
UNAUDITED INTERIM RESULTS
FOR THE SIX MONTHS ENDED 31 JULY 2017
ICG Enterprise Trust plc ('ICG Enterprise' or the 'Company') presents its
unaudited interim results for the six months ended 31 July 2017.
STRONG PERFORMANCE AND EXCELLENT PROGRESS AGAINST STRATEGIC GOALS
* NAV per share of 937p - total return of 8.7% in the six months * Continued
strong operating performance and realisation activity across the portfolio
* Largest 30 underlying companies generating earnings growth of 15%
* Highly cash generative portfolio - record period of proceeds * £117m
received in the period; 20% of the opening portfolio value
* Realisations at 36% uplift to carrying value; 3.1x multiple to cost
* Selective investment into compelling opportunities * £65m invested in the
six months
* Capital deployed into high conviction investments gaining momentum; 54% of
new investment in H1
* Flexibility to adapt investment mix according to where we see the best
relative value
* Strategic benefits of move to ICG continue to add significant value * £16m
co-investment in Domus Vi alongside ICG Europe VI
* £8m co-investment in Visma alongside ICG Europe VI completed in September
2017
* £24m of commitments to two US based managers
* £10m secondary investment in restructuring of ICG Recovery Fund 2008B
* Continued excellent short, medium and long-term outperformance
Performance to 31 July 2017 * 6 months 1 year 3 year 5 year 10 ** year
Net asset value per share (total return) +8.7% +20.1% +45.9% +77.4% +120.7%
Share price (total return) +8.1% +29.5% +38.2% +116.0% +102.2%
FTSE All-Share Index (total return) +7.1% +14.9% +25.7% +65.0% +70.4%
* All figures are on a Total Return basis ** As the Company changed its year end in 2010, the ten year figures are for the 121 month period to 31 July 2017.
Jeremy Tigue, Chairman, commented:
"These results continue your Company's excellent long-term performance, with
both the net asset value and share price outperforming the FTSE All-Share
Index over one, three, five and ten years.
"I have been a Board member of the Company for almost a decade and have
observed first-hand the evolution of the investment portfolio and the
significant shareholder value created by the team's excellent long-term track
record and highly selective investment approach.
"The team's move to ICG early in 2016 has allowed ICG Enterprise Trust to
further build on its flexible mandate. I am delighted with the excellent
progress we have made against a number of strategic goals and believe that the
strategic benefits of the team's move to ICG will continue to add significant
shareholder value and drive outperformance of the wider market."
Emma Osborne, Head of Private Equity Fund Investments, ICG, commented:
"The portfolio is well positioned with strong underlying profit growth and
realisation activity continuing to drive performance.
"Whilst reinvesting capital in the current market is challenging, our flexible
strategy enables us to adapt the mix of investments to where we see best
relative value. In the half year our focus has been on high quality,
defensive direct co-investments and secondary investments. We believe the
portfolio is well positioned to continue to generate significant shareholder
value."
Enquiries
Analyst / Investor enquiries:
Emma Osborne, Head of Private Equity Fund Investments, ICG: +44 (0) 20 3201
7700
Nikki Edgar, Finance and investor relations, ICG: +44 (0) 20 3201 7700
Media
Susan Tether, Acting Head of Corporate Communications, ICG: +44 (0) 20 3201
7917
Tom Eckersley, Associate Partner, Maitland: +44 (0) 20 7379 5151
Important notes:
1. 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 IFRS measures, where appropriate.
2. In the Chairman's Statement, Manager's Review and Supplementary
Information, reference is made to the "Portfolio". This is an APM. The
Portfolio is defined as the aggregate of the investment portfolios of the
Company and of its subsidiary limited partnerships. The rationale for this APM
is discussed in detail in the glossary.
3. ICG Alternative Investment Limited, a regulated subsidiary of Intermediate
Capital Group plc, acts as the Manager of the Company.
4. In the Chairman's Statement, 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), which is defined in the
glossary.
5. Shares will trade without rights to the final dividend from 19 October 2017
("ex-dividend date"). The last date for registering transfers to receive the
dividend is 20 October 2017 ("record date").
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. This report contains information
which, prior to this announcement, was inside information.
CHAIRMAN'S STATEMENT
Strong performance and excellent progress against strategic goals
In my first interim report as Chairman, I am pleased to report that your
Company has continued to build on its strong long-term performance and has
made excellent progress against a number of strategic goals.
Continued outperformance
The growth in net asset value and share price has again outperformed the FTSE
All-Share Index, with the net asset value per share increasing to 937p, a
total return of 8.7%( 1 ) and the share price generating a total return of
8.1%(1).
This performance was driven by both our high conviction portfolio of
co-investments, secondary investments and ICG managed funds, as well as our
third-party private equity funds, with the investment portfolio as a whole
reporting a total return of 9.8%, including 1.1% of favourable currency
movements. Unsurprisingly, given the strong exit environment, it was a record
period for distributions, with the portfolio benefiting from 28 full
realisations at an aggregate uplift of 36% to carrying value and a multiple of
3.1x cost.
These results continue your Company's strong long-term performance, with the
growth in both the net asset value and share price outperforming the FTSE
All-Share Index over one, three, five and ten years.
Strategic benefits of the move to ICG continue to add significant value
I have been a Board member of the Company for almost a decade and have
observed first-hand the evolution of the investment portfolio and the
significant shareholder value created by the team's excellent long-term track
record and highly selective investment approach.
Our flexible mandate allows the team to enhance returns through proactively
adjusting the portfolio's weighting to specific investment opportunities,
dependent on market conditions. These high conviction investments are
underpinned by a portfolio of leading private equity funds, which not only
provide a diversified base of strong returns, but also insights and deal-flow
for the high conviction portfolio.
With the team's move to ICG early in 2016, your Company now has access to a
significantly deeper investment opportunity set. Since joining ICG over £260m
has been committed to new funds and co-investments of which more than 40% has
been directly sourced from the wider ICG network. I expect this trend to
continue. The team also now benefit from insights gained from interacting with
the wider team at ICG, who are transacting with private equity managers or
their portfolio companies worldwide on a regular basis through various
strategies. These insights inform the management of the portfolio and give the
team a competitive advantage when making new investments.
I am delighted with the progress we have made against a number of the
strategic goals, including becoming more fully invested, broadening the
geographic diversification and increasing the proportion of the portfolio
directly managed by ICG.
I believe that the strategic benefits of the team's move to ICG will continue
to add significant shareholder value and drive outperformance of the wider
market.
Strong balance sheet
The record level of distributions in the first half has resulted in cash
balances increasing to £75m, or 11% of net assets. Our long-term objective
remains to be broadly fully invested through the cycle, but, as always,
investment discipline is key and the team continues to be highly selective in
adding new investments to the portfolio.
The Company made five new commitments in the first half and uncalled
commitments stood at £346m at July 2017. We expect these commitments to be
drawn down over the coming three to five years. We have a strong balance sheet
and a highly cash generative portfolio and are well positioned to fund our
uncalled commitments and investment pipeline.
Accretive share buybacks
The Company bought back 882,437 shares at an average discount of 17.5%, adding
0.3% to the net asset value per share. The Board believe the Company has a
high-quality portfolio with strong growth prospects and will continue to
purchase shares on an opportunistic basis.
Interim dividend in line with guidance
The Board recognise that a reliable source of income is an important
consideration for shareholders. Accordingly, an interim dividend of 10.0p
per share will be paid on 3 November 2017. This is in line with the previously
announced policy of paying a minimum dividend of 20.0p per share each
year( 2 ).
Well positioned to adapt to changing markets and capitalise on investment
opportunities
Financial markets remain buoyant, notwithstanding macroeconomic and
geopolitical uncertainties, with asset prices across many markets trading at
record highs. As highlighted by the significant cash generation from our
portfolio over recent years, private equity managers have taken advantage of
these markets to realise assets and crystallise value. Whilst the current
environment provides a fertile exit environment, maintaining investment
discipline is key and our flexible investment mandate allows us to actively
adapt to the market environment and focus on attractive investment
opportunities across strategies and capital structures.
We have a portfolio of high quality assets, a disciplined and selective
investment process, and an excellent track record of strong performance and
conservative balance sheet management through multiple cycles. We are
confident that we are well positioned to adapt to changing market conditions
and capitalise on investment opportunities as they arise.
Jeremy Tigue
9 October 2017
MANAGER'S REVIEW
Performance overview
Strong growth across the portfolio
The portfolio has continued to deliver strong performance, rising in value by
9.8% in sterling, or 8.7% on an underlying local currency basis in the six
months. These returns build on the average 15% p.a.( 3 ) growth the portfolio
has generated over the last five years and have been driven by both operating
performance and realisation activity.
Our underlying portfolio companies are performing well. Strategic change and
operational improvements remain a key driver of earnings growth, which
combined with a modest increase in valuation multiples, have translated into
strong write-ups across the portfolio. In particular, our largest 30
investments, which represent 45% of the portfolio, continue to report strong
earnings growth of 15%( 4 ) and as we look across the entire portfolio, the
growth and valuation trends are similar, reflecting the high quality of the
portfolio overall.
This strong growth has been augmented by our managers continuing to take
advantage of the benign exit environment to crystallise value. Almost a third
of portfolio write-ups in the six months were driven by realisation activity
and sales completed in the period were at an aggregate uplift to carrying
value of 36% and a multiple of 3.1x cost.
Six months ended
31 July 2017 £m
Opening Portfolio** 594.3
Third-party funds portfolio drawdowns 29.9
High conviction investments - ICG funds, secondary investments and co-investments 34.9
Total new investment 64.8
Realisation Proceeds (117.1)
Net cash inflow (52.3)
Underlying Valuation Movement* (,) 51.7
% underlying Portfolio growth 8.7%
Currency movement 6.7
% currency movement 1.1%
Closing Portfolio** 600.4
* In this interim report 91% of the Portfolio is valued using 30 June 2017 (or
later) valuations.
** Refer to the Glossary for reconciliation to the portfolio balance presented
in the unaudited results.
Portfolio overview
High conviction assets underpinned by portfolio of leading private equity
funds
ICG Enterprise's portfolio is unique in the listed private equity sector in
combining in-house directly controlled investments with those managed by
third-parties, in each case both directly and through funds.
Our flexible mandate allows us to enhance returns through proactively taking
overweight positions in attractive investment opportunities in our high
conviction portfolio of ICG directly controlled investments, third party
co-investments and secondary investments. The common theme in our high
conviction portfolio is that we, or the wider ICG team, have made the decision
to invest in the underlying company, unlike in a pure fund of funds model
where the third-party managers make the underlying investment decisions. This
is underpinned by a portfolio of leading private equity funds, providing a
diversified base of strong returns and a valuable source of deal flow for our
high conviction portfolio.
We believe that our strategy leads to a portfolio which strikes the right
balance between concentration and diversification. While diversification at
both the manager and company level reduces risk, concentration in our high
conviction portfolio ensures that individual winners can make a difference to
performance. The portfolio has exposure to more than 450 underlying companies,
of which the largest 30 represent 45% of the portfolio value. The balance of
the investments provides valuable insights, which in turn inform the
management of the portfolio.
Investment category % of portfolio
High conviction portfolio ICG 14.1
Third party co-investments 21.3
Third party secondary investments 8.0
Total High Conviction investments 43.4
Third party funds' portfolio Graphite Capital primary funds 12.4
Third party primary funds Total diversified fund investments 44.2 56.6
Total 100.0%
High conviction portfolio of actively sourced investments
The high conviction portfolio accounted for 43% of value at the half year and
our three to five-year target is to increase this weighting to around 50% to
60% of the portfolio. Almost a third of the portfolio is weighted towards
third-party co-investments and secondary investments, which account for 21%
and 8% respectively. These investments enhance returns through selectively
investing in attractive investment opportunities, on an opportunistic basis.
The exposure to ICG managed investments increased to 14% in the first six
months from less than 7% at the time ICG became Manager of the Company. Within
the ICG weighting, we are invested in three of ICG's strategies with a focus
on funds that have a bias to equity returns, targeting gross IRRs of at least
15% to 20% p.a. We would expect our exposure to ICG investments to increase to
20% to 30% over time as recent commitments are drawn and further funds added.
Portfolio of leading private equity funds
Our portfolio of private equity funds is made up of 38 leading private equity
managers. As mentioned above, this portfolio provides a base of strong
diversified returns and is a source of co-investment and secondary investment
deal flow for the high conviction portfolio. The funds portfolio has a bias to
mid-market and large cap European private equity managers, with the remainder
focused on the US private equity market, and the latter is likely to increase
in the short to medium term.
Investment activity
Record period for realisations at significant uplifts to carrying value and
cost
Our managers took advantage of current market conditions to successfully
realise 28 portfolio companies in the six months, generating proceeds of
£117m, or 20% of the opening portfolio value. Distributions were at a 36%
uplift to carrying value, and a multiple of 3.1x cost. These significant
uplifts are consistent with the portfolio's track record; over the last five
years, realisations from the portfolio have generated average uplifts of 32%
and a multiple of 2.1x cost.
The largest realisation in the six months was the sale of Micheldever, the UK
tyre distributor, which completed in February 2017 generating £36m of
proceeds. Three other companies from the 30 largest underlying companies
were also sold in the period: Quironsalud, Formel D and Proxes. In addition
the disposal of Standard Brands, the manufacturer of domestic fire lighting
products, was announced in July 2017 but did not complete until September.
Largest realisations in the six months to 31 July 2017
Investment Manager Year of investment Realisation Type Proceeds £m
Micheldever Graphite Capital 2006 Trade 36.0
Formel D Deutsche Beteiligungs 2013 Financial buyer 7.1
Proxes Deutsche Beteiligungs 2013 Financial buyer 6.4
Quironsalud CVC 2011 Trade 5.9
Parques Reunidos Arle Capital 2007 Public sell down post IPO 3.8
Xella PAI Partners 2008 Financial buyer 3.5
Cerba PAI Partners 2010 Financial buyer 3.5
Findis Activa 2011 Financial buyer 3.3
Autodata Bowmark 2014 Trade 2.9
Host Europe Group Cinven 2013 Trade 2.5
Total of 10 largest underlying realisations 74.9
Total realisations 117.1
Selective investment into compelling opportunities
As highlighted by the level of distributions from our portfolio, high pricing
and intense competition for good quality assets has meant that the market for
new investments is undoubtedly challenging. Our investment strategy allows us
to be nimble. This gives us greater control over the portfolio, enabling us to
increase exposure to companies we believe will outperform through the cycle,
and the flexibility to adapt to market conditions and invest where we see the
best relative value. We favour more defensive businesses; companies that are
relatively uncorrelated to economic cycles and highly cash generative.
As always, it is important to maintain discipline and despite this challenging
market we have been able to identify a number of attractive investment
opportunities, investing a total of £65m in the first half compared with
£128m in the year to January 2017. Of the capital invested, 54% was
invested in high conviction investments, up from 39% in the year to January
2017 and we are encouraged by the broader range of deal flow we have been able
to access since joining ICG, including from in-house strategies, namely:
* ICG Europe (10% of the portfolio): mid-market buyout investments across the
capital structure aiming for private equity returns with subordinated debt
risk profile. Investments made in this strategy included a £16m
co-investment in the acquisition of Domus Vi, and a £10m secondary investment
in ICG Recovery Fund 2008B.
Domus is our largest co-investment to date and is the third
largest nursing home operator in Europe with leading market positions in
France and Spain. The business and the management team were well known to ICG,
which originally invested in the company in 2003. The business has delivered
strong financial performance, with further organic growth underpinned by
positive demographic and economic trends. The company has also demonstrated
its ability to successfully execute significant acquisitions, creating a solid
platform for further expansion across the fragmented European market.
* ICG Strategic Secondaries (3% of the portfolio): mature vintage fund
recapitalisations led by a specialist team whose innovative, direct investment
style approach to this part of the market has resulted in the fund acquiring
portfolios for highly attractive valuations of approximately 6x to 7x EBITDA
across six transactions to date.
* ICG Asia Pacific (1% of portfolio): mid-market buyout investments in
subordinated debt and equity focused on the developed markets in the region.
As further outlined below, in addition to the investments in ICG strategies,
we also completed £5m of third-party secondary investment in Oak Hill Funds
II and III.
Largest underlying new investments in the six months to 31 July 2017
Investment Description Manager Country Cost £m
Domus Operator of retirement homes ICG France 17.5
Gerflor * Manufacturer of vinyl flooring ICG France 7.1
Cyxtera Operator of data centres BC Partners USA 2.3
Allegro Operator of online marketplace Cinven / Permira Poland 2.2
Stada Manufacturer of generic prescription drugs Cinven Germany 2.0
Park Holidays Operator of caravan parks ICG UK 1.9
Rough Country Provider of off-road suspension Gridiron USA 1.5
CCC Provider of auto collision software and service Advent / Oak Hill USA 1.4
Material Handling Systems Provider of e-commerce/logistics infrastructure Thomas H Lee USA 1.1
Checkers Operator of quick-service restaurants Oak Hill USA 1.1
Total of 10 largest underlying new investments 38. 1
Total new investment 64.8
* Represents a secondary position via ICG Recovery Fund 2008B; Gerflor was
already in the portfolio at 31 January.
Selective commitments to both ICG and third-party funds
We completed five new third-party fund commitments totalling £58m and
increased the ICG Strategic Secondaries Fund commitment, resulting in a total
of £66m of primary fund commitments. Two of the new third-party funds were
raised by managers we have backed successfully for many years (CVC Capital
Partners and Hollyport) while three are new to the portfolio (New Mountain,
Oak Hill Capital Partners and Hg Capital).
All new commitments are to established managers with track records of
investing and adding value through cycles. In the case of New Mountain and Oak
Hill, these are both US mid to upper mid-market managers and the addition of
these funds to the portfolio is consistent with our strategy of gaining more
exposure to this part of the market. The Oak Hill IV commitment had two
pre-existing portfolio companies and, in addition, we were able to secure a
secondary position in the manager's two predecessor funds which was completed
concurrently with the new fund commitment. Situations such as this suit our
style of investment by applying our bottom-up, underlying company focused due
diligence style and targeting opportunities with short term capital deployment
opportunities alongside primary fund commitments. Since joining ICG, we have
completed 15 new fund commitments of which five were late primary investments.
New commitments during the six months to 31 July 2017
Fund Strategy Geography £m
Primary commitments
CVC VII Large buyouts Europe/USA 20.9
Oak Hill IV Mid-market buyouts USA 12.0
New Mountain V Mid-market buyouts USA 11.5
ICG Strategic Secondaries II* Secondary fund recapitalisations USA/Europe 8.0
Hollyport VI Mature secondary portfolios Global 7.6
Hg Capital 8 Mid-market buyouts Europe 5.5
Total primary commitments 65.5
Commitments relating to co-investments and secondary investments 8.7
Total new commitments 74.2
*The new commitment to ICG Strategic Secondaries II increased the existing
exposure to this fund to take the total commitment to £27m at the end of the
period.
Portfolio analysis
Modest increase in valuation multiples
Within the largest 30 companies, the valuation multiple has increased to
10.6x, up from 9.7x at the year end. This increase has been driven by a
combination of a change in the mix and overall weightings of the largest
underlying companies and a modest increase in aggregate multiples overall.
Looking across the wider portfolio, the aggregate valuation multiples are
in-line with our largest 30 companies.
The net debt/EBITDA ratio of the largest 30 companies increased to 4.1x from
3.6x, a result of the change of mix and weightings of the underlying
companies.
Focus on mid-market companies
Our strategy is focused exclusively on the buyout segment of the private
equity market, in which target companies are almost invariably established,
profitable and cash generative. The portfolio is biased towards the
mid-market (48%) and large deals (40%) which we view as more defensive,
benefitting from experienced management teams and often leading market
positions. The portfolio has no venture capital exposure.
Exposure to US increasing
The portfolio is focused on developed private equity markets: primarily
continental Europe (39%), the UK and the US, with almost no emerging markets
exposure. In line with one of our strategic objectives, our weighting to the
US increased to 23% from 14% at the time of the move to ICG 18 months ago
while the UK bias has reduced to 37% from 45% over the same period.
We expect both of these trends to gather pace as the benefits of being part of
ICG's global alternative asset manager platform are further realised. We
have a three to five-year target to increase the US focus to 30% to 40% of the
portfolio. The US is the largest and most developed private equity market in
the world, and we believe will provide the portfolio with attractive returns
and further geographic diversification.
Sector bias towards structural growth
The portfolio is weighted towards structural growth, with 22% of the portfolio
invested in the healthcare and education sectors and 17% in business services.
The remainder of the portfolio is broadly split across the industrial (16%),
consumer goods and services (16%) and leisure (12%) sectors with smaller
weightings to the TMT and financials sectors.
Attractive and well balanced vintage year exposure
The portfolio has an attractive maturity profile which balances near term
realisation prospects with a strong pipeline of medium to longer term
growth.
Investments completed in 2014 or earlier, which are more likely to generate
gains from realisations in the shorter-term, represent 57% of the portfolio.
Against this, 43% of value is in investments made between 2015 and 2017,
providing the portfolio with medium to longer term growth as value created
within these businesses translates into gains.
Within the more mature holdings relatively little value remains in companies
acquired prior to the financial crisis. At the half year only 9% fell within
this category and the recently announced sale of Standard Brands, will reduce
this weighting further.
Balance sheet and financing
Strong balance sheet and positive financing outlook
The exceptionally high level of distributions of £117m far outweighed capital
deployed of £65m, resulting in an increase in cash balances to £75m from
£39m.
Undrawn commitments of £346m compares with total liquidity of £180m,
including the undrawn bank facility of £105m. Commitments therefore exceeded
liquidity by £166m, or 25% of net asset value, which remains within the
Company's historical conservative parameters.
Of the total undrawn commitments, funds in their investment period represented
£254m, providing the Company with a good medium-term investment pipeline.
Commitments are typically drawn down over a period of four to five years with
approximately 10% to 15% retained at the end of the investment period to fund
follow-on investments and expenses. If outstanding commitments were to follow
a linear investment pace to the end of their respective remaining investment
periods, we estimate that approximately £80m to £90m of commitments would be
called over the next 12 months.
Our objective is to be broadly fully invested through the cycle while ensuring
that we have sufficient liquidity to be able to take advantage of attractive
investment opportunities as they arise. We do not intend to be geared
other than, potentially, for short term working capital purposes.
Outlook
Continued investment activity since the period end
Since July 2017, the portfolio has continued to generate a net cash inflow
with realisations of £40m exceeding new investment of £26m. The sale of
Standard Brands completed in September and the sales of CPA Global and ista
were recently announced. The latter two realisations are expected to complete
before the year end.
On the investment front, we completed a £8m co-investment alongside ICG
Europe VI in Visma, the provider of accounting software and business process
outsourcing services. This new investment takes the proforma value of our
holding in Visma to £17m. The transaction completed in September.
Portfolio well positioned to continue to generate significant shareholder
value
The market outlook continues to favour realisations despite a number of
continuing macro uncertainties. Against this backdrop it is more challenging
to redeploy the high levels of cash generated by the portfolio without
diluting quality. Our strategy gives us the flexibility to adapt the mix of
investment types according to where we see the best relative value. In the
current market conditions, we remain focused on identifying new investment
opportunities that we have a high conviction will generate superior returns
through the cycle.
We have a high-quality portfolio, generating strong revenue and profit growth
and we believe it is well positioned to generate significant shareholder value
through the cycle.
Supplementary information
This section presents supplementary information regarding the Portfolio (see
Manager's Review and the Glossary for further details and definitions).
The 30 largest underlying investments
The table below presents the 30 companies in which ICG Enterprise had the
largest investments by value at 31 July 2017. 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 City & County Healthcare Group
Provider of home care services Graphite Capital 2013 UK 3.2%
2 DomusVi+^
Operator of retirement homes ICG 2017 France 3.0%
3 Standard Brands+ -
Manufacturer of fire lighting products Graphite Capital 2001 UK 2.7%
4 Froneri+^
Manufacturer and distributor of ice cream products PAI Partners 2013 UK 2.2%
5 Gerflor^
Manufacturer of vinyl flooring ICG 2017 France 2.1%
6 Education Personnel+^
Provider of temporary staff for the education sector ICG 2014 UK 2.1%
7 nGAGE
Provider of recruitment services Graphite Capital 2014 UK 2.0%
8 PetSmart+
Retailer of pet products and services BC Partners 2015 USA 2.0%
9 David Lloyd Leisure+
Operator of premium health clubs TDR Capital 2013 UK 1.8%
10 Frontier Medical+
Manufacturer of medical devices Kester Capital 2013 UK 1.7%
11 Skillsoft+
Provider of off the shelf e-learning content Charterhouse 2014 USA 1.6%
12 The Laine Pub Company+
Operator of pubs and bars Graphite Capital 2014 UK 1.6%
13 TMF^
Provider of management and accounting outsourcing services Doughty Hanson 2008 Netherlands 1.5%
14 CPA Global+
Provider of patent and legal services Cinven 2012 UK 1.4%
15 Roompot+
Operator and developer of holiday parks PAI Partners 2016 Netherlands 1.4%
16 System One+
Provider of specialty workforce solutions Thomas H Lee Partners 2016 USA 1.4%
17 Visma+
Provider of accounting software and business outsourcing services Cinven 2014 Norway 1.3%
18 ICR Group
Provider of repair and maintenance services to the energy industry Graphite Capital 2014 UK 1.3%
19 Beck & Pollitzer
Provider of industrial machinery installation and relocation Graphite Capital 2016 UK 1.2%
20 Swiss Education+
Provider of hospitality training Invision Capital 2015 Switzerland 1.2%
21 New World Trading Company
Operator of distinctive pub restaurants Graphite Capital 2016 UK 1.1%
22 Cambium
Provider of educational solutions and services ICG 2016 USA 1.1%
23 U-POL^
Manufacturer and distributor of automotive refinishing products Graphite Capital 2010 UK 1.0%
24 Cognito+
Supplier of communications equipment, software & services Graphite Capital 2002 UK 1.0%
25 Ceridian+
Provider of payment processing services Thomas H Lee Partners 2007 USA 0.9%
26 Algeco Scotsman
Supplier and operator of modular buildings TDR Capital 2007 USA 0.8%
27 inVentiv Health
Provider of commercial solutions for healthcare companies Advent 2016 USA 0.7%
28 ista^
Provider of heat and water submetering services CVC 2013 Germany 0.7%
29 AVS Group
Manufacturer of traffic safety products Fynamore Advisers 2013 Germany 0.7%
30 Sky Betting and Gaming
Operator of digital Betting and Gaming websites CVC 2015 UK 0.7%
Total of the 30 largest underlying investments 45.4%
+ 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.
- Sale completed in September 2017
The 30 largest fund investments
The 30 largest funds by value at 31 July 2017 are:
Fund Year of commitment Country/ region Value £m Outstanding commitment £m
1 Graphite Capital Partners VIII *
Mid-market buyouts 2013 UK 56.8 39.8
2 BC European Capital IX **
Large buyouts 2011 Europe 22.8 0.1
3 CVC European Equity Partners V **
Large buyouts 2008 Europe/USA 17.5 0.5
4 ICG Europe VI **
Mezzanine and equity in mid-market buyouts 2015 Europe 16.4 7.7
5 Fifth Cinven Fund
Large buyouts 2012 Europe 14.8 1.7
6 Graphite Capital Partners VII * / **
Mid-market buyouts 2007 UK 14.4 4.7
7 Thomas H Lee Parallel Fund VI
Large buyouts 2007 USA 13.8 1
8 CVC European Equity Partners VI
Large buyouts 2013 Global 11.7 8
9 PAI Europe VI
Mid-market and large buyouts 2013 Europe 11.6 8.1
10 ICG Velocity Partners Co-Investor **
Mid-market buyouts 2016 USA 10.8 2.2
11 Bowmark Capital Partners IV
Mid-market buyouts 2007 UK 9.9 -
12 Deutsche Beteiligungs Fund VI
Mid-market buyouts 2012 Germany 9.8 1
13 Permira V
Large buyouts 2013 Europe 9.8 0.9
14 IK VII
Mid-market buyouts 2013 Europe 9.6 0.4
15 TDR Capital III
Mid-market and large buyouts 2013 Europe 9.5 3.1
16 Thomas H Lee Equity Fund VII
Mid-market and large buyouts 2015 USA 8.9 9.3
17 Doughty Hanson & Co V **
Mid-market and large buyouts 2006 Europe 8.9 6.8
18 TDR Capital II
Mid-market and large buyouts 2006 Europe 8.8 0.9
19 ICG Strategic Secondaries Fund II
Secondary fund recapitalisations 2016 Europe/USA 8.7 19.3
20 Nordic Capital Partners VIII
21 Hollyport Secondary Opportunities V
Mature secondary portfolios 2015 Global 8.6 2.3
22 ICG Europe V **
Mezzanine and equity in mid-market buyouts 2012 Europe 8.6 1.2
23 Graphite Capital Partners VI **
Mid-market buyouts 2003 UK 8.2 2.1
24 ICG European Fund 2006 B
Mezzanine and equity in mid-market buyouts 2014 Europe 7.9 2.2
25 One Equity Partners VI
Mid-market buyouts 2016 USA/Europe 7.7 4.4
26 PAI Europe V **
Mid-market and large buyouts 2007 Europe 7.5 1.1
27 Steadfast Capital III
Mid-market buyouts 2011 Europe 7 0.2
28 Egeria Private Equity Fund IV
Mid-market buyouts 2012 Europe 6.7 2.9
29 Activa Capital Fund III
Mid-market buyouts 2013 France 6.5 7
30 Gridiron Capital Fund III
Mid-market buyouts 2016 USA 5.9 5.9
Total of the largest 30 fund investments 357.8 148.0
Percentage of total investment Portfolio 59.6%
* Includes the associated Top Up funds.
** All or part of an interest acquired through a secondary fund purchase.
Portfolio analysis
Closing Portfolio by type
Portfolio by investment type % of value of underlying investments
Large buyouts 40.4%
Mid-market buyouts 47.9%
Small buyouts 7.5%
Other 4.2%
Total 100.0%
Portfolio by calendar year of investment % of value of underlying investments
2017 9.8%
2016 19.7%
2015 13.9%
2014 20.3%
2013 15.4%
2012 5.3%
2011 2.6%
2010 3.2%
2009