ICG Enterprise Trust Newsletter – October 2024

H1 results briefing from our portfolio managers

Many of you will have seen by now that we released our H1 results this morning. For those on the move, the results in five bullets:

  1. LTM NAV per Share Total Return of 4.0% (5 year annualised: 12.5%)
  2. Continued earnings growth in our Portfolio (14% LTM1)
  3. Activity levels increasing
  4. Nine Full Exits at a weighted-average Uplift to Carrying Value of 25.8% and 3.1x Multiple to Cost
  5. Over the last five years, volatility of our share price has reduced and liquidity has increased

In terms of activity, our top three investments in the period were Datasite (alongside ICG), Visma (alongside Hg) and Audiotonix (alongside PAI). Datasite is a US software-as-a-service company; Visma is a Norwegian provider of cloud accounting, payroll, invoicing and HR business software; Audiotonix is a British designer and manufacturer of professional audio equipment. All benefit from long-term structural growth trends.
 
With results released, we look forward to speaking to many of you over the coming days on our upcoming interim results roadshow. Professional investors who are interested in a meeting should email [email protected].
 
Separately, we were pleased to see the cost disclosure announcement last month. We are currently reviewing our disclosures and we believe this could lead to an increase in demand for our shares from a range of investors.
 
Looking ahead to the final few months of the year, it is clear we are shifting towards a rate reduction cycle across the US and Europe. For those who missed, have a read of this piece by ICG’s Chief Economist Nick Brooks titled “the easing cycle begins”. This monetary easing cycle should help stimulate further activity in the coming quarters, which our Portfolio is well-positioned to benefit from.
 
All of these developments make us increasingly optimistic for our Portfolio and our sector as a whole.

Oliver & Colm

1. Based on Enlarged Perimeter covering 63% of the Portfolio.

Past performance is not reliable indicator of future results.
Unsure of some of these terms? See our Glossary