Icg Enterprise Trust Plc Gbp · LSE:ICGT
Icg Enterprise Trust Plc Gbp — ICG Enterprise Trust — H1 FY2025 Earnings Presentation
23 slides from Icg Enterprise Trust Plc Gbp's earnings presentation, Oct 8, 2024
Slide 1: Results for the six months to 31 July 2024
Results for the six months to 31 July 2024 8 OCTOBER 2024 For professional investors only. Not for onward distribution Note: All data as at 31 July 2024 unless specified PRIVATE AND CONFIDENTIAL
Slide 2: Clear investment strategy
Clear investment strategy Reducing risk Generating alpha Buyouts Developed Mid-market and Top-tier markets larger deals managers Defensive More consistent Primarily in North More likely to be Track records of growth returns profile, with America and Europe; resilient and attract investing well less
Slide 3: Actively constructed and diversified portfolio
Actively constructed and diversified portfolio BALANCED GEOGRAPHICAL EXPOSURE RESILIENT SECTOR EXPOSURE TMT Target weighting Consumer goods & services North Business services ~50% America Healthcare “I am confident in the Europe ~50% Industrials Financials transatlantic Portfolio we have Other Educa
Slide 4: ICG Enterprise Trust delivers long-term growth
ICG Enterprise Trust delivers long-term growth LTM 3 years (ann.) 5 years (ann.) 10 years (ann.) 17.3% 13.5% 13.2% 12.5% 11.7% 11.5% NAV per Share Total Return 10.3% 10.1% Share Price Total Return FTSE All-Share Total Return 8.3% 6.3% 5.8% 4.0% Long-term double-digit NAV per Share Total Return and S
Slide 5: H1 results
H1 results PRIVATE AND CONFIDENTIAL
Slide 6: H1: Portfolio Manager observations
H1: Portfolio Manager observations • Portfolio companies delivering continued earnings momentum (14% LTM1) • Portfolio growth on a local currency basis showing positive quarter-on-quarter trajectory (Q1 +0.5%; Q2 +3.2%) • Third consecutive six-month period of higher new investment levels • Nine Full
Slide 7: Period in review H1 FY25
Period in review H1 FY25 PERFORMANCE OF OUR INVESTMENT STRATEGY RETURNS TO SHAREHOLDERS Portfolio Total Return Capital Return 3.8% NAV per Share 2.6% 1,946p Share Price Total Return £33m1 NAV per Share Total Return 10.3% ~2/3 from buyback 2.8% Portfolio Return on a Portfolio Return on a Local Curren
Slide 8: Our portfolio companies are growing
Our portfolio companies are growing LTM REVENUE GROWTH LTM EBITDA GROWTH EV / EBITDA NET DEBT / EBITDA Top 30 companies 40% 6.8% 1 10.4% 1 15.3x 1 4.3x 1 of Portfolio value FY24: 10.1% FY24: 12.8% FY24: 14.6x FY24: 4.4x Enlarged perimeter2 63% 9.4% 3 13.9% 3 14.9x 3 4.4x 3 of Portfolio value FY24: 1
Slide 9: H1 activity
H1 activity PRIVATE AND CONFIDENTIAL
Slide 10: Executing our investment strategy
Executing our investment strategy H1 FY25 A Commitments £72m Commitments (H1 FY24: £110m) B Total New £104m Investments Total Total New (H1 FY24: £64m) Proceeds Investments C Growth £51m (H1 FY24: £65m) Growth D Total Proceeds £86m (H1 FY24: £94m) Source: ICG Enterprise Trust, as of 31 July 2024 Pas
Slide 11: New fund commitments
A New fund commitments CAPITALISING ON OPPORTUNITIES TO ACCESS TOP-TIER MANAGERS H1 FY25 Primary £72m Secondary • Commitments made to five funds • One commitment to an ICG-managed fund – Strategic Equity V ($25m) Commitments made in this period are expected to be invested over the next 3-5 years Not
Slide 12: Manager relationship case study
Manager relationship case study Oak Hill Capital Partners $15M Top tier manager Leading middle-market private equity firm (35-year history) with an experienced team COMMITMENT TO OAK HILL VI Strong track Consistency of returns and alignment with defensive record growth strategy Oak Hill is a long-st
Slide 13: Investments in the period
B Investments in the period NEW INVESTMENTS TOP NEW INVESTMENTS BY SIZE New Investments / Opening Portfolio H1 FY25: 8% (16% annualised) Provider of SaaS L5Y Avg: 21% software focused on virtual data rooms £304m £287m Provider of business management software Q4 and outsourcing services £159m Q3 Manu
Slide 14: Portfolio growth
C Portfolio growth PORTFOLIO VALUATION BRIDGE (£M) Portfolio Return on a Local Currency Basis: +3.8% Portfolio Return on a Sterling Basis: +2.6% +5.0%1 1 +3.6%1 +2.5% 20 18 1,402 25 6 (16) 1,349 £51m growth in Portfolio Portfolio value Primary Secondary Direct FX Portfolio net cashflow Portfolio val
Slide 15: Realisation activity
D Realisation activity REALISATION PROCEEDS TOP REALISATIONS BY SIZE Realisation Proceeds / Opening Portfolio Provider of H1 FY25: 6% (12% annualised) financial indices L5Y Avg: 21% and data £334m Provider of business management software and outsourcing services £252m Provider of SaaS software focus
Slide 16: Continuing our track record of uplifts on exit
D Continuing our track record of uplifts on exit TRACK RECORD OF FULL EXITS 2.5x 2.7x 2.1x 2.1x 1.9x 1.9x 2.7x 2.4x 2.4x 2.4x 2.6x 2.7x 3.1x 9 Full Exits 51% £49m proceeds 49% 40% 36% 37% 36% 35% 35% 31% 30% 26% 24% 24% 22% FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 H1 FY25 Wei
Slide 17: Shareholder distributions
Shareholder distributions TOTAL SHAREHOLDER DISTRIBUTIONS (DIVIDENDS + BUYBACKS) £48m1 £35m Dividends £21m £22m Intended FY25 dividend £18m £17m Long-term buyback 2 Opportunistic buyback FY20 FY21 FY22 FY23 FY24 FY25 (to date) Of opening 2.5% 2.1% 2.2% 1.9% 2.7% 3.7%1 NAV 3 PROGRESSIVE DIVIDEND POLI
Slide 18: Looking ahead
Looking ahead • Actively managed Portfolio continuing to deliver long-term defensive growth • Market is experiencing an increased level of transaction activity • Ongoing implementation of capital allocation policy to optimise the shareholder experience Source: ICG Enterprise Trust, as at 31 July 202
Slide 19: Q&A
Q&A For follow-up questions after the event, please email: icg-enterprise@icgam.com PRIVATE AND CONFIDENTIAL
Slide 20: Appendix
Appendix PRIVATE AND CONFIDENTIAL
Slide 21: Well-capitalised balance sheet
Well-capitalised balance sheet TOTAL AVAILABLE LIQUIDITY OVERCOMMITMENT RATIO1 NET GEARING2 £126m 35% 6% Enabling us to maintain our investment programme through cycles Source: ICG Enterprise Trust, as at 31 July 2024 1. Overcommitment ratio is defined as (Outstanding commitments – Liquidity)/NAV 2.
Slide 22: Performance figures
Performance figures Performance for 12 months ending: 31 July 2024 31 July 2023 31 July 2022 31 July 2021 31 July 2020 NAV per Share Total Return 4.0% 4.1% 24.2% 37.5% (2.2)% Share Price Total Return 17.3% 2.8% 10.7% 40.7% (7.4)% FTSE All-Share Index Total Return 13.5% 6.1% 5.5% 26.6% (17.8)% Source
Slide 23: Legal notice
Legal notice What this document is for This document has been prepared by ICG Alternative Investment Limited (“ICG AIL”) as manager of ICG Enterprise Trust plc (“ICG Enterprise”). The information and any views contained in this document are provided for general information only. It is not intended t
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