REG - ICG Enterprise Trust - Interim Management Statement <Origin Href="QuoteRef">ICGT.L</Origin>

ICG Enterprise TrustAnnouncement

14/06/2016 12:50

RNS Number : 1564B
ICG Enterprise Trust PLC
14 June 2016
14 June 2016
ICG ENTERPRISE TRUST PLC
INTERIM MANAGEMENT STATEMENT
QUARTER ENDED 30 APRIL 2016
ICG Enterprise Trust plc ("ICG Enterprise" or "the Company") presents its Interim Management Statement for the quarter ended 30 April 2016. 
Performance overview1
In the three months to 30 April, the net asset value per share increased by 1.9% to 745.2p. In the same period the share price fell 0.6% against a 3.9% increase in the FTSE All-Share Index.
In the last twelve months the net asset value per share increased by 9.9%, while the share price fell 3.0% against a 5.7% fall in the FTSE All-Share Index.
In the three months to 30 April, the value of the portfolio in local currencies increased by 1.8%. The impact of currency movements on non-sterling investments and cash balances increased the net asset value by a net 0.6%, with expenses and other items reducing it by 0.5%. Overall, the net asset value increased by 1.9%.
The long term performance of the Company remains strong, with both the net asset value and the share price comfortably outperforming the Index over one, three, five and ten years.
Performance to 30 April 2016
1
3
5
10*
Netassetvaluepershare
9.9%
24.3%
43.7%
101.9%
Shareprice
-3.0%
18.0%
59.8%
70.3%
FTSE All-ShareIndex
-5.7%
12.0%
29.4%
60.1%
* As the Company changed its year end in 2010, the ten year figures are for the 121 month period to
30 April 2016.
Further details about performance and activity in the quarter are presented below.
Performance and activity in the quarter
Valuation of the portfolio
Approximately two-thirds of the 1.8% increase in the local currency valuation of the portfolio was driven by full exits or refinancings.
Proceeds
The portfolio generated 29.3 million of proceeds in the three months to 30 April. 
Ten full realisations were completed, accounting for 18.3 million of the proceeds received for an average return of 1.6 times cost. Eight post-crisis investments generated an average uplift on realisation of 21% for a return of 2.7 times cost. Two pre-crisis investments dragged the average return down to 1.6 times cost.
The remaining 11.0 million of total proceeds was generated by a combination of refinancings, sell-downs of listed holdings by third party managers and other partial realisations.
Additions and new commitments
New investment activity in the quarter totalled 17.1 million, with fund drawdowns of 8.3 million and secondary purchases and co-investments of 8.8 million.
New commitment activity was led by a commitment of $15 million to the ICG Strategic Secondary Fund II and a $15 million co-investment in a new secondary transaction alongside that fund. This investment increases the exposure of the Company to private equity investments in the US and should be a good source of future co-investment opportunities.
We also committed 20 million to the Sixth Cinven Fund and 15 million to Advent GPE Fund VIII. Both are existing manager relationships for ICG Enterprise. 
Cash and liquid assets2
The portfolio generated a net 10.0 million of cash in the three months to 30 April. Expenses and positive currency movements reduced cash by a net 0.1 million. Overall, cash and liquid assets increased by 9.9million to 113.7 million.
Movement in liquid assets
3 months to
m
30 April 2016
Opening cash and liquid assets
103.8
Additions 
(17.0)
Cash proceeds generated by the portfolio*
27.0
Net cash generated by the investment portfolio
10.0
Non-investment cash flows
(0.6)
Effect of changes in foreign exchange rates
0.5
Net cash movement
9.9
Closing cash and liquid assets
113.7
*Including income

Balance sheet2 and commitments
The summary balance sheet and commitment position at 30 April 2016 is set out below. The Company was 79% invested at that date.

30 April 2016
m
% of total assets
31 January 2016
m
% of total assets
Total portfolio
428.6
78.7%
428.2
80.3%
Cash and liquid assets
113.7
20.9%
103.8
19.5%
Other net current assets
2.2
0.4%
1.3
0.2%
Total assets
544.5
100.0%
533.3
100.0%
Equity shareholders' funds
531.5

521.3

Undrawn bank facility *
98.4

97.1

Total liquidity **
212.0

200.9

Outstanding commitments
294.7

253.8

Overcommitment ***
82.6

52.9

Overcommitment as % of shareholders' funds
15.6%

10.1%

* 50.0 million and 61.7 million translated into sterling at period end
** Cash and liquid assets plus undrawn borrowing facilities
*** Outstanding commitments less total liquidity
Outstanding commitments increased by a net 40.9 million to 294.7 million in the quarter, primarily due to new primary commitments of 37.8 million. The overcommitment at the quarter end represented 15.6% of the net assets of the Company.
Events since the quarter end
Other than as discussed above, the Directors are not aware of any events or transactions which have taken place between 30 April 2016 and the date of publication of this statement which have had a material effect on the financial position of the company.
Not audited or reviewed
This information has not been audited or reviewed by the Company's auditors.
For further information please contact:
Emma Osborne
Portfolio Manager
020 3201 1302
Mark Crowther
Investor Relations
020 3201 7842
Michael Pote
Finance
020 3201 1307
1. All performance figures are on a total return basis, including the effect of re-invested dividends.
2. 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.
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 2016. 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 investment portfolio
1
Micheldever +





Distributor and retailer of tyres
Graphite Capital
2006
UK
5.4%
2
City & County Healthcare Group





Provider of home care services
Graphite Capital
2013
UK
3.2%
3
Education Personnel +





Provider of temporary staff for the education sector 
ICG 
2014
UK
2.9%
4
nGAGE





Provider of recruitment services
Graphite Capital
2014
UK
2.9%
5
Skillsoft +





Provider of off-the-shelf e-learning content
Charterhouse
2014
USA
2.1%
6
Standard Brands +





Manufacturer of fire lighting products
Graphite Capital
2001
UK
2.0%
7
R&R Ice Cream +





Manufacturer and distributor of ice cream products
PAI Partners
2013
UK
2.0%
8
David Lloyd Leisure +





Operator of premium health and fitness clubs
TDR Capital
2013
UK
1.8%
9
TMF





Provider of management and accounting outsourcing services 
Doughty Hanson 
2008
Netherlands 
1.7%
10
U-POL





Manufacturer and distributor of automotive refinishing products
Graphite Capital
2010
UK
1.5%
11
PetSmart +





Retailer of pet products and services
BC Partners
2015
USA
1.5%
12
Parques Reunidos





Operator of attraction parks 
Arle Capital 
2007
Spain 
1.5%
13
The Laine Pub Company +





Operator of pubs and bars
Graphite Capital
2014
UK
1.5%
14
ICR Group





Provider of repair and maintenance services to the energy industry
Graphite Capital
2014
UK
1.5%
15
Frontier Medical +





Manufacturer of medical devices
Kester Capital
2013
UK
1.5%
16
Algeco Scotsman





Supplier and operator of modular buildings 
TDR Capital 
2007
USA 
1.5%
17
CPA Global +





Provider of patent and legal services
Cinven
2012
UK
1.4%
18
Co-investment + / *





Provider of business services
Large buy-out manager
2014
Europe
1.3%
19
TMP





Provider of recruitment services
Graphite Capital
2006
UK
1.1%
20
Cognito +





Supplier of communications equipment, software and services
Graphite Capital
2002
UK
1.1%
21
Formel D





Provider of quality control for automotive services
Deutsche Beteiligungs
2013
Germany
1.0%
22
Swiss Education +





Provider of hospitality training
Invision Capital
2015
Europe
0.9%
23
Ceridian +





Provider of payment processing services
Thomas H. Lee Partners
2007
USA
0.9%
24
Odgers +





Provider of recruitment services
Graphite Capital
2009
UK
0.8%
25
Gerflor





Manufacturer of vinyl flooring
ICG
2011
France
0.8%
26
Technogym





Manufacturer of premium fitness equipment and wellness products
Arle Capital
2006
Italy
0.8%
27
InVentiv Health





Provider of healthcare and pharmaceutical consulting
Thomas H. Lee Partners
2010
USA
0.8%
28
Aero Technics





Provider of civil aircraft maintenance
Graphite Capital
2015
UK
0.8%
29
Quironsalud





Provider of private healthcare services
CVC Capital
2011
Spain
0.7%
30
The Groucho Club





Operator of members' club
Alcuin Capital
2015
UK
0.7%

Total of the 30 largest underlying investments


47.6%
+ All or part of this investment is held directly as a co-investment or other direct investment.
* We are not permitted to disclose the details of this co-investment under the terms of a confidentiality agreement.
The 30 largest fund investments
The 30 largest funds by value at 30 April 2016 are set out below:

Fund
Outstanding commitment  million
Year of commitment
Country/
region
Value
 million
1
Graphite Capital Partners VIII *





Mid-market buy-outs
56.0
2013
UK
35.8
2
Graphite Capital Partners VI **





Mid-market buy-outs
2.1
2003
UK
23.8
3
CVC European Equity Partners V **





Large buy-outs
1.3
2008
Europe/ USA
16.3
4
BC European Capital IX **





Large buy-outs
4.7
2011
Europe
15.4
5
Thomas H. Lee Parallel Fund VI





Large buy-outs
0.9
2007
USA
14.4
6
Graphite Capital Partners VII */**





Mid-market buy-outs
7.6
2007
UK
13.3
7
Deutsche Beteiligungs Fund V





Mid-market buy-outs
3.4
2006
Germany
11.8
8
Activa Capital Fund II





Mid-market buy-outs
0.7
2007
France
11.6
9
TDR Capital II 





Mid-market and large buy-outs
0.8
2006
Europe
11.5
10
Fifth Cinven Fund





Large buy-outs
5.1
2012
Europe
11.2
11
Candover 2005 Fund **





Large buy-outs
0.1
2005
Europe
10.7
12
Bowmark Capital Partners IV





Mid-market buy-outs
1.0
2007
UK
10.5
13
Doughty Hanson & Co V **





Mid-market and large buy-outs
6.0
2006
Europe
8.8
14
PAI Europe V **





Mid-market and large buy-outs
1.0
2007
Europe
8.7
15
ICG European Fund 2006 B **





Mezzanine
9.2
2014
Europe
8.3
16
ICG Velocity Partners **





Mid-market buy-outs
2.2
2016
USA
8.1
17
ICG Europe V





Mezzanine
0.5
2012
Europe
8.0
18
IK VII





Mid-market buy-outs
1.2
2013
Europe
7.2
19
Permira V





Large buy-outs
2.6
2013
Europe
5.5
20
CVC Capital Partners VI





Large buy-outs
10.0
2013
Global
5.2
21
Deutsche Beteiligungs Fund VI





Mid-market buy-outs
2.9
2012
Germany
5.0
22
Piper Private Equity Fund V





Small buy-outs
1.3
2010
UK
4.8
23
PAI Europe VI





Mid-market and large buy-outs
10.9
2013
Europe
4.5
24
TDR Capital III





Mid-market and large buy-outs
4.2
2013
Europe
4.2
25
Hollyport Secondary Opportunities IV





Tail-end secondary portfolios
0.8
2013
Global
4.1
26
Nordic Capital Partners VIII





Mid-market and large buy-outs
3.8
2013
Nordic
4.1
27
Egeria Private Equity Fund IV





Mid-market buy-outs
3.9
2012
Europe
3.5
28
Fourth Cinven Fund **





Large buy-outs
2.9
2006
Europe
3.3
29
Advent Global Private Equity VII





Large buy-outs
0.8
2012
Europe/ USA
3.3
30
Hollyport Secondary Opportunities V





Tail-end secondary portfolios
5.6
2015
Global
3.3

Total of the largest 30 fund investments
153.5


286.2

Percentage of total investment portfolio



66.8%
* Includes the associated Top Up funds.
** All or part of interest acquired through a secondary fund purchase.
Portfolio analySIS
The following five tables analyse the companies in which ICG Enterprise had investments at
30 April 2016.
Portfolio - Investment type

% of value of underlying investments
Large buy-outs

46.8%
Mid-market buy-outs

41.0%
Mezzanine

8.5%
Small buy-outs

3.7%
Total

100.0%
Portfolio - Geographic distribution*

% of value of underlying investments
UK

45.8%
North America

15.1%
Germany

10.2%
France

10.2%
Scandinavia

5.5%
Benelux

5.2%
Italy

2.8%
Spain

2.7%
Other Europe

2.2%
Rest of world

0.3%
Total

100.0%
NB: Total Continental Europe

38.8%
* Location of headquarters of underlying companies in the portfolio. Does not necessarily reflect countries to which companies have economic exposure.
Portfolio - Year of investment

Valuation as multiple of cost
% of value of underlying investments
2016

1.0x
2.1%
2015

1.1x
12.0%
2014

1.2x
22.9%
2013

1.6x
18.1%
2012

1.7x
7.9%
2011

1.4x
6.0%
2010

1.6x
6.3%
2009

2.8x
1.7%
2008

1.0x
5.6%
2007

1.7x
6.5%
2006 and before

1.4x
10.9%
Total

1.4x
100.0%
Portfolio - Sector analysis

% of value of
underlying 
investments
Business services

21.9%
Healthcare and education

16.7%
Consumer goods and services

14.9%
Industrials

14.8%
Leisure

10.5%
Automotive supplies

8.2%
Financials

6.0%
Technology and telecommunications

3.5%
Media

2.2%
Chemicals

1.3%
Total

100.0%
Quoted equity holdings at 30 April 2016
All quoted holdings are held indirectly through third party funds and may have restrictions on their sale. The timing of any disposal of these interests is determined by the managers of those funds.
Underlying investment
Ticker
 million
% of investment portfolio
VWR International
VWR
2.4
0.6%
JRP
JRP
2.4
0.5%
Party City
PRTY
1.8
0.4%
ComHem
COMH
1.6
0.4%
Saga
SAGA
1.6
0.4%
Black Knight
BKFS
1.6
0.4%
Tumi
TUMI
1.4
0.3%
Fogo de Chao
FOGO
0.9
0.2%
West Corporation
WSTC
0.7
0.2%
Sunrise Communications
SRCG
0.7
0.2%
Univar N.V
UNVR
0.7
0.2%
FleetCor
FLT
0.6
0.1%
Evonik
EVK
0.5
0.1%
Others (less than 0.5 million)

2.4
0.6%
Total

19.3
4.6%
The following table analyses the closing portfolio by value.
Third party, Graphite Capital and ICG investments at 30 April 2016
Portfolio
Third party
 million
Graphite Capital
 million
ICG
 million
Total
 million
% of investment portfolio
Primary investments in funds
190.3
60.6
8.1
259.0
60.4%
Secondary investments in funds
42.3
12.3
16.4
71.0
16.6%
Direct and co-investments
52.7
34.0
11.9
98.6
23.0%
Total portfolio
285.3
106.9
36.4
428.6
100.0%
% of portfolio
66.6%
24.9%
8.5%
100.0%

Investment activity
Largest new underlying investments
Investment
Description
Manager
Country
Cost
 million
Factory-CRO *
Provider of contract research organisation to medical industry
Kester Capital
Europe/USA
1.0
TEG
Provider of recruitment and payroll services
Egeria
Netherlands
0.7
The Masai Clothing Company
Retailer of female clothing
Silverfleet
Denmark
0.7
Cigierre
Operator of casual diners
BC Partners
Italy
0.5
Coventbridge
Provider of insurance investigative services
Harwood
UK
0.5
Total of 5 largest new underlying investments


3.4 
* Completed post period end.
Largest underlying realisations 
Investment
Manager
Year of investment
Realisation type
Proceeds
 million
Spheros
Deutsche Beteiligungs
2011
Trade
8.1
David Lloyd Leisure
TDR Capital
2013
Recapitalisation
3.7
Swissport
PAI Partners
2011
Trade
3.4
PetSmart
BC Partners
2015
Recapitalisation
2.0
Frontier Medical
Kester Capital
2013
Recapitalisation
1.9
Total of 5 largest underlying realisations


19.1
Commitments analysis
The following three tables analyse ICG Enterprise's commitments at 30 April 2016.
Commitments 
Original commitment*  million
Outstanding commitment  million
Average drawdown percentage
% of commitments
Investment period not commenced
27.4
27.4
n/a
9.3%
Funds in investment period
352.0
213.2
39.4%
72.4%
Funds post investment period
521.3
54.1
89.6%
18.3%
Total
900.7
294.7
67.3%
100.0%
* Original commitments are translated at 30 April 2016 exchange rates.
Commitments - remaining investment period
% of commitments
Investment period not commenced
9.3%
4-5 years
17.1%
3-4 years
15.9%
2-3 years
32.1%
1-2 years
2.3%
<1 year
5.0%
Investment period complete
18.3%
Total
100.0%
Movement in outstanding commitments in the quarter to
30 April 2016
 million
Opening
253.8
New primary commitments
37.8
New commitments arising through secondary purchase of fund interests
2.3
Drawdowns
(8.3)
Currency and other movements
9.1
Closing
294.7
CURRENCY EXPOSURE

30 April
2016
 million
30 April
2016
% 
31 January
2016
 million
31 January
2016
% 
Portfolio*




- Sterling
213.2
49.7%
209.1
48.8%
- Euro
112.2
26.2%
122.8
28.7%
- US dollar
69.9
16.3%
60.9
14.2%
- Other European
31.3
7.3%
33.5
7.8%
- Other
2.0
0.5%
1.9
0.5%
Total
428.6
100.0%
428.2
100.0%
*Currency exposure is calculated by reference to the location of the underlying portfolio companies' headquarters.

30 April
2016
 million
30 April
2016
%
31 January
2016
 million
31 January
2016
%
Outstanding commitments




- Sterling
100.9
34.2%
102.3
40.3%
- Euro
162.1
55.0%
131.2
51.7%
- US dollar
29.7
10.1%
18.4
7.2%
- Other European
2.0
0.7%
1.9
0.8%
Total
294.7
100.0%
253.8
100.0%
END

This information is provided by RNS
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