ICG Enterprise Trust reports solid first half performance

The FTSE 250 company said its net asset value per share total return was 10.9% in the six months ended 31 July, down from 11.1% year-on-year, and was 24.2% over the last 12 months.

It said its portfolio was delivering “strong” performance, with a portfolio return on a local currency basis of 7.4% and a sterling return of 12.4%, while 99.6% of the portfolio had a valuation date of 30 June or later.

Realisation proceeds totalled £106.8m in the period, including £73.2m from 30 full exits at an average uplift To carrying value of 25.2%.

New investments totalled £143.7m, including £30.1m direct and £49.2m in secondary Investments, with the firm focussing on investments with “enhanced downside protection”.

New commitments to funds came in at £164.1m, including £65.9m to secondary funds.

The board declared a second quarter dividend of 7p per share, taking total dividends for the period to 14p, up from 12p a year ago.

ICG also reaffirmed its intended full-year dividend of at least 30p per share - an increase of 11.1% on the 2022 period.

“Against a macroeconomic backdrop that became increasingly challenging, we are proud of the resilience of our investments during the first half of the 2023 financial year,” said Oliver Gardey, head of private equity fund investments at ICG.

“Delivering defensive growth through economic cycles defines our approach at ICG Enterprise Trust - it shapes how we construct the portfolio and evaluate potential investments, as well as how we allocate capital between reinvestments and shareholder distributions.

“We entered the financial year with a portfolio aligned with this strategy and during the period it has delivered on our ambition, generating a 7.4% portfolio return on a local currency basis.”

Gardey said the firm’s investment team had “reacted effectively” to “evolving market dynamics”, allocating capital in a disciplined fashion to opportunities it believed offered “attractive” risk-adjusted returns in this environment, such as secondary portfolios, while also selectively making primary commitments to third party funds.

“There are great opportunities to be captured by successfully navigating challenging markets.

“We believe that our clear investment strategy and flexible mandate, supported by the experience and network of our dedicated team, position us well to generate long-term value.”

At 0909 BST, shares in ICG Enterprise Trust were up 2.04% at 1,002p.

Reporting by Josh White at Sharecast.com.