The key takeaways from ICG Enterprise Trust plc (LON:ICGT) investor seminar on 18 June 2025 were on slide 33. PE remains a structurally attractive asset class, and ICGT has i) a unique portfolio of profitable, cash-generative, private companies ‒ nearly impossible to replicate in public markets, ii) balance sheet strength, adding flexibility, iii) nimble portfolio construction, and iv) a holistic approach to maximising shareholder value. In our view, the most interesting new information in the seminar was the multiple statistics showing the value added by the manager, with superior IRRs, lower-than-peer loss rates in co-investments, and faster-than-market EBITDA growth.
- Manager value-add: Across the day, slides revealed benchmark-beating IRRs in primary and secondary fund investments, lower-than-peer loss rates in co-investments (none since 2016), and faster-than-market EBITDA growth. Unsurprisingly, this has delivered material long-term share outperformance.
- Seminar topics: The meat of the seminar came in sessions on i) proactive approach to portfolio management (slides 7-13), ii) investing for long-term growth (slides 15-24, with a Gridiron Capital case study), and iii) the role of secondaries in the portfolio (slides 26-31).
- Valuation: ICG Enterprise Trust’s NAV valuations are conservative, demonstrated by continued realisations above reported book values. The ratings are undemanding. The 31% discount to NAV is anomalous, we believe, with defensive, market-beating returns, and twice the levels seen pre-COVID-19. The 2026E yield is 2.8%.
- Risks: PE is an above-average cost model, but post-expense returns have consistently beaten public markets. Actual experience has been of continued NAV outperformance in economic downturns, but sentiment may be adverse. ICGT’s permanent capital structure is right for unquoted/illiquid assets.
- Investment summary: ICG Enterprise Trust has consistently generated superior returns by adding value in an attractive market, having a strategic focus on defensive growth and leveraging synergies from being part of ICG since 2016. Valuations appear conservative, and governance is strong. ICGT focuses on delivering resilient, risk-adjusted returns, and balancing risk and reward. The risks are primarily sentiment-driven on costs, cyclicality and the underlying assets’ liquidity. A 31% discount to NAV appears anomalous with ICGT’s performance.
