ICG Enterprise conviction pays off – ICG Enterprise has published results for the year ended 31 January 2019. Highlights include:
- NAV per share of 1,057p – total return of 12.4% in the year, annual dividend of 22p
- Growth driven by strong profit growth and realisation uplifts
- 10th consecutive year of double digit underlying portfolio growth
- 15.0% constant currency return on the portfolio;
- 16.6% return in sterling
- 16% average long-term earnings growth from top 30 Companies; 46% of the portfolio
- GBP163m of proceeds received
- Realisations at 35% uplift to carrying value; 2.4x multiple to cost
- GBP158m of new capital deployed; 50% into high conviction investments
- Focus remains on defensive growth, structural downside protection and relative value
- Five co-investments completed; two alongside ICG and three alongside third party managers
- GBP162m committed to 10 primary funds; four new relationships
- ICG managed investments now represents 20% of the portfolio, US now 26%
- Further realisations since the year end, GBP19m of distributions and GBP12m of calls paid
- Commitments to two new US mid-market manager relationships and one existing European manager
- $20m commitment to AEA Investors, $15m to Gryphon Investors and EUR20m to Cinven VII
- Closing net asset value of GBP731m; investment portfolio represents 95% of net asset value – cash GBP61m;
- Uncalled commitments of GBP411m against GBP211m total liquidity (including GBP150m undrawn bank facility)
- New EUR176m (GBP150m) bank facility agreed; more favourable terms and matures in two equal tranches in April 2021/2022
Emma Osborne, ICG, commented: “The portfolio has delivered its 10th consecutive year of double digit underlying growth, driven by continued strong profit growth and valuation uplifts on realisations. Against the current backdrop of high valuations for new investments and continuing macro uncertainties we remain highly selective in redeploying cash generated by the portfolio. We have a strong pipeline of new opportunities and believe the portfolio is well positioned to continue to generate shareholder value.”
The chairman said: “We have a target for high conviction investments to represent 50% – 60% of the portfolio and this year they made up 50% of capital deployed, up from 42% in the previous year and 33% in 2016. A key driver of this has been the increase in proprietary deal-flow from ICG. Over the last five years, high conviction investments have generated a return of 19% p.a. in local currencies, and we expect them to continue to produce strong returns.”
ICGT : ICG Enterprise conviction pays off