9 December 2016

ICG ENTERPRISE TRUST PLC

QUARTERLY UPDATE

FOR THE QUARTER TO 31 OCTOBER 2016

Performance overview

• Net asset value per share Total Return¹ for the quarter of 3.2% (nine months to 31 October 2016 of 13.5%), with the net asset value per share at 813.5p.  In the last twelve months, net asset value per share increased by 19.4%, while the share price increased by 8.8% against a 12.2% increase in the FTSE All-Share Index
• The Portfolio¹ is valued at £518.6m at 31 October 2016, driven by strong underlying growth of 8.6%, and favourable foreign exchange movements of 9.9% for the nine months to 31 October 2016
• In line with our strategy of becoming fully invested and reflecting the benefit of being part of ICG, the investment rate increased in the quarter with investments of £43.4m outstripping realisations of £17.3m
• Share price up to 650p (implying a 20.1% discount to the net asset value) from 545p at 31 January 2016, with a Share price Total Return for the period of 22.5%. The FTSE All-Share Index was up 16.6% in the same period
• The long term performance² of the Company remains strong, with the net asset value outperforming the FTSE All-Share Index over one, three and ten years.

* As the Company changed its year end in 2010, the ten year figures are for the 121 month period to 31 October 2016.

Commenting on performance, Mark Fane, Chairman, said

"The environment for realisations continues to be positive despite volatility in markets and geopolitical concerns, and the prospects for further growth in unrealised valuations remain strong. Our investment strategy, which is fundamentally unchanged following the move to ICG, gives us the flexibility to adapt the mix of primary funds, secondaries and co-investments to changing market conditions and to deploy cash where we see the best relative value. The move to ICG is generating significant new investment opportunities. In addition, ICG is providing access to a range of specialist functions to provide support and enhance the management of the Company.

Footnote

1. Included in this Quarterly Update are Alternative Performance Measures ("APMs"). APMs have been used if considered by the Board and the Manager to be the most relevant basis for shareholders in assessing the overall performance of the Company, and for comparing the performance of the Company to its peers and its previously reported results. The Glossary includes further details of APMs and reconciliations to IFRS measures, where appropriate. The rationale for the APMs was discussed in detail in the Manager's Review in the July 2016 interim results. The Glossary includes a reconciliation of the Portfolio to the most relevant IFRS measure.
    
2. All performance figures are on a total return basis, including the effect of re-invested dividends.

Activity in the quarter to 31 October 2016

Investment activity
The Portfolio generated £17.3m of proceeds in the quarter to 31 October 2016. This brings the total proceeds year to date to £62.8m (nine months to 31 October 2015: £88.2m).

Seven full realisations were completed during the quarter, accounting for £7.7m of the proceeds received at an average return of 2.8 times cost. The remaining £9.6m of total proceeds was generated by a combination of refinancings, sell-downs of listed holdings by third party managers and other partial realisations.

In the nine months to 31 October 2016, 30 full realisations were completed with 22 post-crisis investments generating an average uplift on realisation of 32% for a return of 2.9 times cost. The eight pre-crisis investments dragged the average return down generating an average uplift on realisation of 8% at a return of 1.2 times cost.

New investment activity in the quarter totalled £43.4m, comprising fund drawdowns of £24.0m and secondary purchases and co-investments of £19.4m. This brings the total invested in the nine months to £73.7m (nine months to 31 October 2015: £37.5m), in part reflecting the investment opportunities generated from our relationship with ICG.

During the quarter to 31 October 2016 three new commitments were made to third party funds, BC European Capital X (€15.0m), Permira VI (€10.0m) and Gridiron Capital III ($15.0m). A further two new commitments were made to ICG funds, $15.0m to ICG Asia Pacific III and €0.5m to ICG Europe V through a secondary transaction. Finally, two new co-investment commitments were made to System One ($10.0m) and Roompot (€10.0m). Please refer to further information in the supplementary information.

Since the change of Manager on 1 February 2016, 13 new commitments and discretionary investments totalling £135m have been completed, of which 40% has been sourced directly or indirectly from ICG.

Cash and liquid assets¹
Cash and liquid assets decreased by £33.0m to £77.4m mainly as a result of a net £26.1m invested in the Portfolio in the three months to 31 October 2016.  Non-investment cash flows and favorable currency movements increased cash by £1.0m.  The interim dividend of 10.0p per share returned £7.1m to shareholders. The Company also bought back 98,919 shares for £0.6m. 

Footnote

1. All balance sheet data is presented on a look-through basis to the investment portfolio held by the Company, which is consistent with the commentary in previous annual and interim reports.

Balance sheet
The summary balance sheet and commitment position at 31 October 2016 is set out below.

Enquiries

Analyst / Investor enquiries:

Emma Osborne, Portfolio Manager, ICG                                                             +44 (0) 20 3201 1302
Mark Crowther, Investor Relations, ICG                                                               +44 (0) 20 3201 7842
Anthony McKay, Finance, ICG                                                                            +44 (0) 20 3201 7700

Disclaimer

This Quarterly Update may contain forward looking statements. These statements have been made by the Directors in good faith based on the information available to them up to the time of their approval of this report and should be treated with caution due to the inherent uncertainties, including both economic and business risk factors, underlying such forward looking information.

These written materials are not an offer of securities for sale in the United States. Securities may not be offered or sold in the United States absent registration under the US Securities Act of 1933, as amended, or an exemption therefrom. The issuer has not and does not intend to register any securities under the US Securities Act of 1933, as amended, and does not intend to offer any securities to the public in the United States. No money, securities or other consideration from any person inside the United States is being solicited and, if sent in response to the information contained in these written materials, will not be accepted.

This Quarterly Update contains information which, prior to this announcement was insider information.

Supplementary information

The 30 largest underlying investments

The table below presents the 30 companies in which the Company had the largest investments by value at 31 October 2016. These investments may be held directly or through funds, or both. The valuations are gross and are shown as a percentage of the total investment portfolio.

⁺ All or part of this investment is held directly as a co-investment or other direct investment.

The 30 largest fund investments

The 30 largest funds by value at 31 October 2016 are:

* Includes the associated Top Up funds.

** All or part of interest acquired through a secondary fund purchase.

Portfolio analysis

The following tables analyse the companies in which ICG Enterprise had investments at 31 October 2016.

Quoted equity holdings at 31 October 2016

All quoted equity holdings are held indirectly through third party funds and may have restrictions on their sale.  The timing of any disposal of these interests is determined by the managers of those funds.

Closing portfolio by value at 31 October 2016

Largest new underlying investments

Largest underlying realisations

Commitments analysis

The following tables analyse commitments at 31 October 2016. Original commitments are translated at 31 October 2016 exchange rates.

New commitments in the quarter to 31 October 2016

Portfolio currency exposure

Outstanding commitment currency exposure

Glossary

Portfolio
Throughout, reference is made to the "Portfolio", which represents the aggregate of the investment portfolios of the Company and of its subsidiary limited partnerships. This is consistent with the commentary in previous annual and interim reports. The Board and the Manager consider that this is the most relevant basis for shareholders to assess the overall performance of the Company and comparison with its peers.

The closest equivalent amount reported on the balance sheet is "investments at fair value". A reconciliation of these two measures is presented below.

FTSE All-Share Index Total return - The change in the level of the FTSE All-Share Index Index, assuming that dividends are re-invested on the day that they are paid.

Net asset value per share Total Return - The change in the Company's net asset value per share, assuming that dividends are re-invested at the end of the quarter in which the dividend was paid.

Share price Total Return - The change in the Company's share price, assuming that dividends are re-invested on the day that they are paid.

Total Return is a performance measure that assumes the notional re-investment of dividends. This is a measure commonly used by the listed private equity sector and listed companies in general.

The tables below set out the share price and the net asset value per share growth figures for periods of 1, 3, 5 and 10 years to the balance sheet date, on both an unadjusted basis (i.e. without dividends re-invested) and on a Total Return basis.

Underlying valuation movement is the change in the valuation of the Company's Portfolio, before the effect of currency movements.