covid-19 update from ICG Enterprise – “Given the rapid escalation of the crisis, we currently have limited visibility on the short and longer-term impact of COVID-19 on the global economy. It is therefore difficult to accurately gauge the impact on the portfolio at this stage. Performance will vary between geographies, sectors and companies and be dependent on business models and end markets.
ICG Enterprise has a high-quality portfolio that is well-diversified and weighted towards more resilient sectors, such as healthcare, consumer staples, business services and technology. Our portfolio also has a bias to managers who have a strong operational focus and demonstrable experience of successfully managing investments through periods of economic stress; while the situation is rapidly evolving, our managers have moved decisively to address immediate risks and are implementing plans to protect and preserve long term value.
Private equity is a long-term asset class with an active ownership model and an ability to react quickly to issues. We have significant expertise within our investment team and, more broadly, ICG has a long track record of managing private companies through multiple financial and economic cycles.
At 31 January 2020, the financial year end, ICG Enterprise had available liquidity of GBP163m (GBP15m cash and GBP148m undrawn bank facility). GBP40m was recently drawn from our bank facility, taking total gross cash balances to GBP56 million at 20 March 2020.
ICG Enterprise will be reporting full year results for the 12 months to 31 January 2020 in the second half of April 2020.”
ICG Enterprise’s shares were close to £10 ahead of the sell off and closed at 600p last night. At that price, Morningstar estimates that it was trading at a 47% discount to NAV, although that NAV is out of date. It may be that the shares are trading at a real discount in the high teens/ early 20s, which would not be too far out of line with its recent history.