- How these returns were delivered: Our September 2020 note Defensive growth: explaining downside resilience noted why PE outperforms in downturns. ICG Enterprise Trust plc (LON:ICGT) further reduces risk with a “defensive growth” strategy. 4QFY’21 saw a strong performance in two of its largest listed holdings, PetSmart and Telos.
- Outlook: The growth side of “defensive growth” is now likely to be evident. ICGT is investing heavily in historically above-average-return HC investments and £201m of resources to take strong pipeline opportunities. In the first two months, FY’22 realisations are two thirds of the five-year annual average.
- Valuation: Valuations are conservative (uplifts on realisations averaging 36% over 10 years). The ratings are undemanding, and the carry value against cost modest. The 23% discount to NAV is anomalous, we believe, with defensive market-beating returns. The yield is 2.2%.
- Risks: PE is an above-average cost model, but post-expense returns are market-beating. Even though actual experience has been continued NAV outperformance in economic downturns, sentiment is likely to be adverse. ICGT’s permanent capital structure is right for unquoted and illiquid assets.
- Investment summary: ICG Enterprise Trust has consistently generated superior returns, by adding value in an attractive market, having a defensive growth investment policy and exploiting synergies from being part of ICG since 2016. The valuations and governance appear conservative. It has an appropriate balance between risks and opportunities. The risks are primarily sentiment-driven on costs and cyclicality, and the underlying assets’ liquidity. As noted, it seems anomalous to have a consistent record of outperformance and to trade at an 18% discount to NAV.
ICG Enterprise Trust: FY’21 results – blew the roof off, not just the doors
- Written by: Amilia Stone
Latest Company News
NB Private Equity Partners: Analyst Mark Thomas explains how rising exits, midlife co-investments and accelerated buybacks suggest NBPE is on track for a rebound. Could the second half of 2025 be the turning point investors have been waiting for?
Jason Streets of Hardman & Co explains why Cavendish Plc’s strong cash position and consistent earnings make it one of the UK’s most resilient small-cap investment banks — even as M&A volumes slide.
In a recent interview with DirectorsTalk, Mark Thomas of Hardman & Co discussed his report on ICG Enterprise Trust, highlighting the firm’s continued resilience and growth.
ICG Enterprise Trust has completed the realisation of its investment in Froneri, generating cash proceeds of €41 million. Froneri, a leading ice cream manufacturer and distributor, was ICGT’s largest portfolio holding at 2.7% of total assets as of 31 July 2025.
Volta Finance gives everyday investors access to outperforming private credit via CLOs — a space usually reserved for institutions. Analyst Mark Thomas breaks down the structural advantages, income strategy and manager performance behind the Hardman & Co report: “Liquid Access to Outperforming Private Credit”.
Mark Thomas, Analyst at Hardman & Co outlines Real Estate Credit Investments’ strong 10% dividend yield, portfolio resilience, and effective risk management under Cheyne Capital.
