Icg Enterprise Trust Plc Gbp · LSE:ICGT
Icg Enterprise Trust Plc Gbp — ICG Enterprise Trust — H1 2021 Earnings Presentation
22 slides from Icg Enterprise Trust Plc Gbp's earnings presentation, September 2020
Slide 1: Supplementary information
Supplementary information For the six months ended 31 July 2020 Note: All data as at 31 July 2020 unless specified
Slide 2: Supplementary portfolio information
Supplementary portfolio information
Slide 3: ICG Strategies
ICG Strategies Investing in five out of ICG’s 21 strategies Strategy Gross Total Latest fund return Value Undrawn exposure (ICGT invested Description size target £m £m £m since) ICG Europe Subordinated debt and equity in mid- market companies with experienced €4.5 billion 15-20% p.a. 125 29 154 (198
Slide 4: Impact of COVID-19 – our Portfolio
Impact of COVID-19 – our Portfolio Performance and speed of recovery will vary by sector and company 1 Healthcare (18%) and Education (6%) 2 Consumer goods and services (18%) 3 TMT (16%) • Healthcare expected to be resilient • Consumer staples/essential consumer services and e- commerce are performi
Slide 5: Detailed portfolio overview
Detailed portfolio overview Single fee on almost half of the portfolio ICG Graphite Third party Primary 63.0% 7.4% 8.7% 46.9% Secondary 8.3% 3.2% 0.1% 5.0% Co- Investment/ direct 28.7% 12.9% 1.3% 14.5% 100.0% 23.5% 10.1% 66.4% No management fee at ICGT level 5 No management fee at underlying manager
Slide 6: Top underlying companies #1-15
Top 30 underlying companies #1-15 Year of Value as a % of Company Manager Country investment Portfolio 1 PetSmart + Retailer of pet products and services BC Partners 2015 USA 4.3% 2 DomusVi + Operator of retirement homes ICG 2017 France 4.1% 3 Roompot + Operator and developer of holiday parks PAI Pa
Slide 7: Top underlying companies #16-30
Top 30 underlying companies #16-30 Year of Value as a % of Company Manager Country investment Portfolio 16 VitalSmarts + Provider of corporate training courses focused on communication skills Leeds Equity Partners 2019 USA 1.1% and leadership development 17 PSB Academy + Provider of private tertiary
Slide 8: Portfolio geographic focus
Portfolio geographic focus Increasing geographical diversification Movement in geographic split ▪ Increasing exposure to the US market 100% 7% - Largest most developed private equity market 80% 41% - 35% of portfolio; up from 14% at Jan 16 37% Rest of World - Strategic objective for US focus to incr
Slide 9: Portfolio vintage year exposure
Portfolio vintage year exposure Balanced maturity Investment vintage 25% ▪ Investments completed in 2016 or earlier – 38% of the portfolio 21% 20% 19% ▪ 62% of value in investments made in 2017 or 18% later 15% 15% ▪ High relative weighting to recent investments reflects: - Higher level of realisati
Slide 10: Appendices
Appendices ENTERPRISE TRU:
Slide 11: Manager Overview
Manager Overview A leading specialist manager in private debt, credit and equity €46 31 year track record of lending to and investing in private equity backed Stockholm businesses through multiple cycles Amsterdam London Warsaw Paris Frankfurt New York Madrid Luxembourg San Francisco Tokyo to propri
Slide 12: ICG Enterprise Trust investment team
ICG Enterprise Trust investment team A strong combination of direct and fund investment experience ▪ Joined the team in ▪ Joined the team in 2010 ▪ Joined the team in 2009 September 2019. ▪ 15 years of PE experience ▪ 13 years of PE experience ▪ Over 25 years of private ▪ Graphite Capital (funds, ▪
Slide 13: ESG
ESG ICG is committed to responsible investing ICG’s approach to ESG ESG is an integral part of investment decision-making ▪ ICG has been a signatory to United Nations Principles for Responsible Investment (“PRI”) since 2013 - 2020 assessment rated Grade A+A+A ▪ Committed to action on climate change
Slide 14: NAV bridge
NAV bridge Flat sterling portfolio return NAV per share bridge 1200p Change in NAV 1180p Jul-20 (% of opening NAV) Underlying portfolio return in local currencies (3.6%) 1160p 1152.1 41.7 42.6 3.6 Currency 3.7% 1140p 7.2 2.9 0.7 Total portfolio valuation movement 0.1% 1120p 13.0 1126.9 Effect of cas
Slide 15: Management fees and expenses
Management fees and expenses Effective management fee of 1.3% of NAV Costs as a % of investment portfolio Incentive (excluding cash) 3% ▪ Headline management fee of 1.4%1 of portfolio value plus 0.5% of undrawn commitments to funds in investment period ▪ Excludes funds managed by both ICG and Graphi
Slide 16: Incentive arrangements
Incentive arrangements Strong alignment of interest through co-investment scheme Incentive net payments as a % of cash proceeds ▪ Average incentive accrual over the last 10 financial years of <7% of portfolio gain1 5% Incentive 10 year average ▪ Co-investment scheme in which the investment team and
Slide 17: Balance sheet
Balance sheet Liquidity position strengthened during period £m Jul-20 Jan-20 ▪ Objective is to be broadly fully invested through Investments 765 806 the cycle Cash 39 14 - Retain sufficient liquidity to take advantage of attractive opportunities Other net assets/(liabilities) (29) (26) - Do not inte
Slide 18: Balance sheet evolution
Balance sheet evolution Increasing balance sheet efficiency and long-term growth 850 650 450 695 806 765 601 428 594 433 432 250 265 415 192 231 357 378 50 133 140 113 104 90 £ million 43 46 55 69 39 78 61 39 14 43 46 55 69 39 14 39 113 30 90 104 78 61 133 140 59 58 37 15 98 103 148 -150 101 96 104
Slide 19: Dividends and buybacks
Dividends and buybacks Continuing to return capital to shareholders Dividends and share buy backs Dividends 40 Buybacks ▪ The Board has committed to a progressive annual Special div dividend policy with quarterly payments 35 Ordinary div ▪ Q2 dividend of 5p to be paid on 4 December 2020 30 ‒ Total d
Slide 20: Discount
Discount Sector discounts have significantly widened since year end Company vs sector long term discount Company vs sector discount (since 31 Jan 2020) 10 10 - - -10 -10 -20 -20 -30 -30 -40 -40 -50 -50 -60 -60 -70 -70 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 20
Slide 21: ICG Enterprise Trust Board
ICG Enterprise Trust Board Private equity, investment and commercial experience ▪ Appointed to the Board in ▪ Appointed to the Board in ▪ Appointed to the Board in 2019 2018 2011 ▪ Co-founder of Ruffer ▪ Over 25 years of private ▪ Former global head of Investment Management equity experience equity
Slide 22: 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