Graphite Enterprise Trust has announced that Intermediate Capital Group plc (ICG) has been appointed as the trust’s investment manager. This follows ICG’s acquisition of the private equity fund investment business of Graphite Capital Management LLP. The change of manager is expected to take effect on 1 February 2016 and Graphite Enterprise will be renamed ICG Enterprise Trust plc on that date. The trust says that the five investment professionals currently dedicated to the management of its portfolio, including Emma Osborne and Kane Bayliss, will form a new business within ICG and so the trust will benefit from continuity of management.
Graphite Enterprise was a founding investor in ICG in 1989 and has subsequently invested in five ICG funds and nine ICG co-investments. The trust says the the performance of these investments has made ICG the Company’s most profitable third-party relationship. At 31 October 2015, investments in ICG funds accounted for 4% of the portfolio and direct investments managed by ICG for a further 3%.
At 31 October 2015, investments in Graphite funds accounted for 18% of the portfolio and direct investments managed by Graphite for a further 6%. However, as part of the revised fee arrangements discussed below, the company says that Graphite will continue to offer it a privileged allocation to future Graphite funds and ICG will not charge a fee on commitments to or investments in these funds.
Following the appointment of the new manager, the management fee rate will be reduced from 1.5% to 1.4% per annum. No fee will be charged on investments in or commitments to either ICG or Graphite funds.
Graphite Enterprise management moving to Intermediate Capital Group : GPE