Icg Enterprise Share Discussion Threads

[deadly] 11/6/2025 15:53:31

What made this take off rather than other PE trusts which linger in the doldrums?

[triskelion] 25/4/2025 15:58:02

From a quick search I can't find what ICGT paid for Minimax in 2018 and I haven't spent time tracing through the RNSs to try and figure out if NAV (preferably that allocated to it) has dropped over time. The RNS stating "The sale was executed in line with the last reported NAV and proceeds have been received." seemed a bit circumspect to me.
Also the share price hasn't yet recovered from the Tariffs kerfuffle either unlike eg DORE (I know, not a true comparison except for being another that has dropped significantly in recent times - but unlike ICGT, with some significant correction today).

[18bt] 16/4/2025 07:11:58

Decent realisation of cash at NAV from largest investment. Should provide confidence on valuations.

[elbrus55] 06/4/2025 15:26:36

Sorry, By MBO, I should have just said 'buyout'. It is what they mainly do - buy companies outright or at least where they can take a controlling interest.RCF is just a form of debt, similar an overdraft. It is a term used by ICGT in their accounts and RNSs - oops... I mean Regulatory News Statements.

[ali47fish] 04/4/2025 08:25:19

elbruss please sum up in easy language an no abbreviations

[elbrus55] 04/4/2025 07:56:25

If they don't sell some old investments and make some new ones then the portfolio will become very mature and it is no longer an enterprise / MBO investment strategy which is what ICGT is about.Realising investments at 5pc discount, when you can repurchase your own shares at about 37pc discount gives a good opportunity for risk-free NAV accretion. Probably fortunate timing given the market falls this week. They are paying swaps+300bp on the RCF, so should benefit by at least that much until the proceeds are reinvested.

[pyglet] 03/4/2025 09:29:06

Price now about 1250. A year ago 1250 is it really proving a brilliant investment

[apple53] 02/4/2025 20:25:24

Thanks for the commentary everyone.
As noted in the statement, this is the 4th time in 5 years. I was trying to check back for the amounts and discounts previously, but failed to find even one similar rns, and failed in a quick search through a full year.
If my memory is correct the last one was a similar discount, if not higher, and a similar amount. I guess the minor worry is that they might have shed 20%+ of the portfolio at a discount, suggesting a meaningful portion no better than fairly valued (accepting a transaction discount as axiomatic and 5% being pretty good). Still, despite these impacts, the NAV does keep rising......
I also am generally happy to see the active management, and further additions to the buyback pot.

[nexusltd] 02/4/2025 13:25:55

@1968jon. Points very well made and accepted. Q3 reported exits were good. Thanks.
@pvb 15% IRR does not include fees etc.

[pvb] 02/4/2025 13:04:46

nexusltd 2 Apr '25 - 12:05 - 389 of 390

That as secondary sale was best is not a good result. Secondary's are generally sold @ a discount to NAV; usually to prove to the market that stated valuations are realistic. The MOIC of 1.6 is well short of 2.5 which is a test of quality benchmark threshold. 64mn wrt 1200mn GAV is c 5%; so at least a twentieth of the portfolio is underperforming. Thoughts?

2.5x is all very well, but what's the effective IRR? From the RNS:

"It realises a return of 1.6x invested cost (15% IRR) to ICGT, and releases undrawn commitments of £10m."

That sounds perfectly satisfactory to me.

[1968jon] 02/4/2025 12:40:13

Well that kind of depends.......if the sales were of the best part of the portfolio, we're all knackered!
It stands in contrast to the stated uplift of 18% from 12 full exits in the Q3's at the end of Jan.

Theory is that the 1.6x should be offset by some of the 3x already sold. Not every one is a massive winner.

Realistically - though it can be different for larger players, who move investments through funds - they probably don't want to be owning anything ten years old.
As you said secondaries are normally done at a discount. 1.6x is not great but at 5% of NAV, if they look like rump investments, and an 18% uplift is not coming if they hold them, clear them out and buy shares?

[nexusltd] 02/4/2025 12:05:48

That as secondary sale was best is not a good result. Secondary's are generally sold @ a discount to NAV; usually to prove to the market that stated valuations are realistic. The MOIC of 1.6 is well short of 2.5 which is a test of quality benchmark threshold. 64mn wrt 1200mn GAV is c 5%; so at least a twentieth of the portfolio is underperforming. Thoughts?

[1968jon] 02/4/2025 10:34:36

If you raise £62m at a 5.5% discount to NAV and buy stock at a 37% discount to NAV, that is a decent trade. When they said in the RNS this morning it will be deployed "into opportunities......and capital allocation policy", I presume this is what they meant. Or they can invest the £62m in something which gets marked down to £40mish.
I want to own this thing for ten years plus and compound at 10%+ but until - if ever - the PE trusts discounts narrow substantially, I am happy for them to buy every share they can.

[apple53] 29/3/2025 04:29:03

Pyglet has there been some news I missed? I am on tenterhooks for the December update, having bought back in driven by the correction. Currency an issue.
Buybacks seem to be running slightly faster than the quarter to October. I think the pace is about 4% P. A.
It would be interesting to compare rates of capital return at the PE ITs.
Discount remains outrageous, and among the highest (along with HVPE and PIN) among peers.

[pyglet] 28/3/2025 21:43:38

Remarkably resilient all things considered

[ali47fish] 13/3/2025 08:15:09

isnt there an update today- google finance says so but no rns

[elbrus55] 14/2/2025 08:47:48

I would imagine they are constrained more by how much spare cash they have and the number of sellers rather than the authority limit.They might get around to cancelling the treasury shares at some point - just to tidy up the accounting.I think the 15% applies to number of shares bought since the last AGM, rather than the cumulative about over the years

[elbrus55] 14/2/2025 08:29:33

It is 9,984,819 based on the June AGM resolution.They had some shares in Treasury at that time I.e. shares already purchased. The 15% doesn't apply to these.

[pyglet] 04/2/2025 17:46:34

Anyone wondering how many shares is 15% for the buy back that was initiated it is 10,936,950.

[18bt] 23/1/2025 07:03:16

Another good update - this is a strong compounder

[1968jon] 03/12/2024 11:51:31

I presume Metage Capital's letter to HVPE is being discussed by many a PE trust's board this morning....

[pyglet] 28/11/2024 08:23:25

Nice steady rise, almost going unnoticed

[novision] 18/10/2024 18:04:13

Yep I had a lot of good buys in the middle of covid too.

[peckers56] 18/10/2024 17:56:37

Held 4.5 years. After Divis, annual return 8.11.

[novision] 18/10/2024 13:42:03

3yrs invested in this - just about break even after divs… I’ve had worse of course!