Icg Enterprise Trust Plc Gbp · LSE:ICGT
Icg Enterprise Trust Plc Gbp — Graphite Enterprise Trust — Q1 2015 Earnings Presentation
23 slides from Icg Enterprise Trust Plc Gbp's earnings presentation, Jun 12, 2015
Slide 1: Graphite Enterprise Trust PLC Q1 results
Graphite Enterprise Trust PLC Investing in long term growth Q1 results 12 June 2015
Slide 2: Q1 results – June 2015 agenda
Graphite Enterprise Q1 results – June 2015 1. Performance and balance sheet Tim Spence Senior Partner, Finance Director 2. Investment activity and portfolio Kane Bayliss Partner, 3. Outlook Fund investment Page 1
Slide 3: Summary: Highlights of the quarter ended 30 Apr 15
Summary Highlights of the quarter ended 30 Apr 15 • Little new valuation info – mostly based on Dec valuations • NAV rose by 0.4% - up 3.7% over 12 months on a total return basis • Share price rose by 0.5% to 578p – discount was 17.2% • Relatively subdued new investment – lower level of drawdowns •
Slide 4: The NAV performance reflected the lack of new valuation information
1. Performance and balance sheet The NAV performance reflected the lack of new valuation information Apr Jan Total return Total return 2015 2015 3 months 12 months Net asset value per share 697.9p 695.2p +0.4% +3.7% Share price 578.0p 575.0p +0.5% +3.6% FTSE All-Share Index 3,760 3,622 +5.1% +7.5% ●
Slide 5: The Company was 83% invested at the quarter end
1. Performance and balance sheet The Company was 83% invested at the quarter end Apr-15 Apr-15 Jan-15 Jan-15 £m % £m % Investments 427 83% 432 84% Net current assets 90 17% 85 16% Total assets less current liabilities 517 100% 517 100% Outstanding commitments 228 234 Undrawn bank facility1 95 96 Tot
Slide 6: Share buy-backs are set to continue
1. Performance and balance sheet Share buy-backs are set to continue ● Cash at 10 June was £95.9m ─ Since Q1, the portfolio has generated a net inflow of £9.8m and buy-backs were £2.6m ● When adjusting for the £11.2m dividend to be paid 18-Jun, cash falls to £84.7m ● The secondary market remains cha
Slide 7: The portfolio has continued to generate net cash inflows
2. Investment activity and portfolio The portfolio has continued to generate net cash inflows Note Gross investment cash flows in the left-hand chart exclude proceeds from secondary sales. Page 6
Slide 8: Realisations have continued to be strong
2. Investment activity and portfolio Realisations have continued to be strong ● £28.8m was received in the period and £9.7m further proceeds from NFA received in May ● The total of £38.5m represents 8.9% of the opening portfolio, ─ This compares with 33% for year to Jan-15 ● 55% of proceeds was gene
Slide 9: New investment has been weaker than in recent periods
2. Investment activity and portfolio New investment has been weaker than in recent periods ● £18.4m invested in the period ● We completed one co-investment and one secondary purchase for a total of £10.4m ● Drawdowns of £8.0m were lower than previous periods ─ There were no drawdowns by Graphite VII
Slide 10: New secondary purchase – BC Partners IX
2. Investment activity and portfolio New secondary purchase – BC Partners IX Background ● £7.2m secondary purchase of an additional interest in BC European Capital IX – €6.7 billion 2011 vintage large cap buy-out fund ● Highly sought-after position in the secondary market ● Strong relationship with
Slide 11: New co-investment in PetSmart (£3.2m)
2. Investment activity and portfolio New co-investment in PetSmart (£3.2m) Background ● Largest US speciality retailer of pet products and services ● Sales of $7 billion and EBITDA of $1 billion from over 1,300 stores ● Listed on NASDAQ in 1993 ● Put up for sale in July 2014 following operational un
Slide 12: Discretionary investments make up 55% of the total portfolio
2. Investment activity and portfolio Discretionary investments make up 55% of the total portfolio Graphite portfolio Third party portfolio Direct co- 26% Funds 59% (of which secondaries: 14%) invests 15% ● 25 active third party manager relationships ● 3 Graphite Capital funds, 53 third party funds a
Slide 13: Six of the top ten holdings are managed directly by Graphite Capital
2. Investment activity and portfolio Six of the top ten holdings are managed directly by Graphite Capital Company Country Manager % of portfolio 1 Distributer and retailer of tyres UK Graphite 5.4% 2 Provider of home care services UK Graphite 3.2% 3 Provider of repair services to energy companies UK
Slide 14: The portfolio was valued at 1.4x cost and average maturity 4.5 years
2. Investment activity and portfolio The portfolio was valued at 1.4x cost1 and its average maturity was 4.5 years 33% 67% (1.5x) (1.3x) Note 1. Multiples of cost reflect managers’ gross valuations and include amounts realised by Page 13 current portfolio companies of 0.3 times. Weighted by value at
Slide 15: Outlook: The European buy-out market
3. Outlook The European buy-out market New buy-outs ● Prices are significantly higher than 2013, at 9-10x EBITDA vs 8-9x1 – Prices paid are now as high as in 2007 ● Debt levels are higher than 2013, at 5.0-5.5x vs 4.5-5.0x – Higher incidence of “covenant-lite” deals means lower default risk despite
Slide 16: Graphite Enterprise is well positioned to grow further
3. Outlook Graphite Enterprise is well positioned to grow further ● The environment for realisations remains strong – Private equity, trade buyers and public markets are all possible exit routes ● The portfolio continues to perform well – Realisations continue to generate strong valuation uplifts –
Slide 17: Further information
Further information Graphite Enterprise
Slide 18: Graphite Enterprise has a distinct offering in the listed private equity sector
Further information Graphite Enterprise has a distinct offering in the listed private equity sector FOCUSED STRATEGY DISTINCTIVE INVESTMENT STYLE European buy-outs - mature, profitable Focus on analysis of underlying companies companies - both through funds and directly and building long-term relati
Slide 19: Little new valuation information was received in the quarter
Further information Little new valuation information was received in the quarter % of opening % of opening Quarter to Apr-15 £m portfolio NAV Underlying valuation gains 2.8 % 2.3 % 11.9 Currency (1.7)% (1.5)% (7.5) Total portfolio 1.1 % 0.8 % 4.4 Expenses and other (0.4)% (3.4) NAV total return 0.4
Slide 20: Graphite Enterprise has outperformed the peer group over 3, 5 and 10 years
Further information Graphite Enterprise has outperformed the peer group over 3, 5 and 10 years Years to Apr-151,3 1 3 5 10 Total return Graphite Enterprise NAV growth 4% 24% 57% 134% Peer group2 average NAV growth 10% 22% 47% 127% ● The Company has taken lower balance sheet risk than the peer group
Slide 21: The portfolio is balanced and well diversified
Further information The portfolio is balanced and well diversified ● The portfolio strikes a good balance between diversification and concentration – Exposure to over 380 underlying companies – The top 30 underlying companies represent 45% of the portfolio value Note At 30-Apr-15. Geography denotes
Slide 22: Useful information
Useful information Structure: Company registered in England and Wales Ticker: GPE.LN Investment trust tax status ISIN: GB0003292009 Registered company number: 01571089 SEDOL: 0329200 Listing: Premium London listing Website: www.graphite-enterprise.com Broker: J.P. Morgan Cazenove Angus Wilton (sales
Slide 23: Legal notice
Legal notice What this document is for This document has been prepared by Graphite Capital Management LLP (“Graphite Capital”) as manager of Graphite Enterprise Trust PLC (“Graphite Enterprise”). The information and any views contained in this document are provided for general information only. It i
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