Fund Profile


Disclosure – Non-Independent Marketing Communication

This is a non-independent marketing communication commissioned by ICG Enterprise. The report has not been prepared in accordance with legal requirements designed to promote the independence of investment research and is not subject to any prohibition on the dealing ahead of the dissemination of investment research.

A new version of this profile is available. View Latest

ICG Enterprise (ICGT) recently announced its NAV as at 31 October. As we discuss in more detail in the Performance section, the portfolio showed good progress. With the managers indicating that strong momentum has continued into the final quarter of their financial year (ending 31 January), we look forward to more details in April when the trust publishes its annual results.

ICGT invests in profitable, cash-generative private companies, primarily in Europe and the US. Overall, the portfolio appears to have been operationally resilient, proving that the underlying companies are exposed to very different risks and growth drivers to listed stock markets. As such, we think ICGT offers a potentially useful complement to portfolios.

Five of the top ten holdings have been made through ICG, and eight are ‘high conviction’ (representing those invested through ICG funds, co-investments, and secondary investments). In 2016 when ICGT’s management team moved to ICG, the board set out a strategic goal to increase ‘high conviction’ investments to 50% of the portfolio, and also to increase exposure to US private equity deals. High conviction investments now represent 46% of the portfolio, and US companies represent 39%, representing strong progress toward these goals.

Last year’s dividend of 23p per share represents a historic yield of 2.3% at the current share price (as at 11/02/2021). So far this year, the board have paid three 5p interims. The balancing amount determining the total dividend will be announced with the annual results in late April. Given that it is paid from capital, the dividend is not subject to the same short-term headwinds that other dividend sources have faced this year.

Analyst's View

We believe that there are plenty of attractions to ICGT. Private equity is a relatively misunderstood asset class, and one only needs to look at back to a year ago to see the risks of the discount widening in a market sell-off. However, we believe that the performance of ICGT’s portfolio over 2020 serves to highlight the trust’s essential attractions.

ICGT is a high-quality trust, but there is potential for its differentiating features to be better recognised by the market in the form of a narrower discount than peers. ICGT sits right in the middle of the LPE spectrum when viewed in terms of approach. It is neither a higher risk, concentrated trust, nor a very highly diverse one with many thousands of underlying investments. ICGT is a hybrid direct and fund-of-fund investor, putting it in the sweet-spot in terms of concentration vs. diversification. As we discuss in the Portfolio section, there is clear potential for ICGT to differentiate itself from the peer group yet further as the proportion of ‘high conviction’ investments increase.

In our view, as ICGT continues to carve out its own niche, this will serve as a support for the share price rating. High conviction investments have delivered higher returns historically, but investors should start to value more highly the access that ICG as a manager brings. The third-party portfolio adds diversification, but also wider access to dealflow through other managers. With the discount still wider than it was at the start of 2020, now could be an interesting time to consider ICGT.

Portfolio benefitting from being in ‘sweet spot’ in terms of concentration vs diversification, having delivered strong historic returns
Private-equity valuations lag markets, so precise level of discount is hard to determine
Benefits of ICG starting to be felt in underlying portfolio (now 25% of total), with trust in good position re: deal flow and access to investments
Gearing in underlying companies will magnify valuation movements
ICGT carving out its own niche in the LPE sector offers the potential for a sustained discount narrowing relative to peers
If sentiment towards risk assets changes, the discount may widen, potentially dramatically
Continue to Portfolio

Fund History

19 Oct 2023 Fund Analysis
ICGT has posted good interim results, illustrating the resilience of its buyout portfolio…
18 May 2023 Treasure hunters
What can a corporate raider’s perspective tell us about private equity trusts..?
13 Apr 2023 Far from the madding crowd
Smaller nimble companies, both public and private, may be best placed to navigate the current environment…
21 Feb 2023 Fund Analysis
ICGT’s continued portfolio resilience means it looks potentially attractive…
10 Feb 2023 Wrong when it’s right
Economic data is balanced on a knife edge, but that hasn’t stopped the markets surging so far this year. With such a confusing picture to consider, we look at the opportunities lying elsewhere…
30 Nov 2022 Cry havoc!
Lessons from a year in which an already troubled world was savaged by the dogs of war...
16 Nov 2022 Fund Analysis
ICGT continues to differentiate itself from the peer group…
03 Aug 2022 Diverging fortunes in listed private equity
Growth capital and buyout trusts now trade at similar wide discounts. In our view, this belies very different prospects for underlying earnings and for valuations...
25 Mar 2022 Slides and Audio: ICG Enterprise
Download the presentation and listen to the audio from our 'Ideas for your ISA' virtual Spring event on 17 March...
23 Mar 2022 Fifteen ideas for your ISA
Slides and audio from our event last week, featuring fund managers running money in every major market in the world...
17 Mar 2022 It's the end of the world as we know it
We examine five potential themes for investors seeking long-term returns in a troubled and uncertain world...
01 Mar 2022 Fund Analysis
ICGT continues to progress towards its target of 60% ‘high-conviction’ investments…
02 Feb 2022 Getting in on the act: Private markets
Private markets could be the next big opportunity for investors…
06 Oct 2021 Slides and Audio: ICG Enterprise
Download the presentation and listen to the audio from our 'Now that's what I call a discount!' Autumn conference on 30 September...
23 Sep 2021 Now that's what I call a discount 2021!
For the second year running we examine trusts on discounts which, in our view, don't make sense...
23 Sep 2021 Even better than the real thing
We explain private equity and examine why tweaks to listed private equity trusts give the sector an advantage over the direct route...
04 Aug 2021 60/40 and other dinosaurs
A simple practical step to take your portfolio from the 1990s into the 2020s...
08 Jul 2021 Fund Analysis
ICGT continues to deliver consistently strong returns…
19 May 2021 The complexity premium
We examine the idea that extra returns can be obtained from buying investments which are perceived to be more complex by most investors...
10 Mar 2021 Spring Conference '21
Audio and presentations from 21 of the UK’s leading investment trust managers…
04 Mar 2021 Slides and Audio: ICG Enterprise
Download the presentation and listen to the audio from our 'Ideas for your ISA' Spring Conference on 04 March...
03 Mar 2021 Fund Analysis
With momentum behind ICGT, we anticipate further NAV progress into the financial year end...
05 Nov 2020 The haves and have nots
With listed private equity trust discounts widening, are investors mistakenly assuming that underlying portfolios will perform worse than public market indices?...
17 Jul 2020 Active ownership of private equity in a crisis
An active approach is an effective means to minimise risks and maximise returns.
25 Jun 2020 Selling the family silver
Is there something fishy about a trust paying dividends from capital?
04 Jun 2020 Fund Analysis
With its focus on defensive growth, ICGT’s current discount feels unwarranted...
03 Jun 2020 Price is what you pay, value is what you get
The listed private equity sector has seen discounts widen markedly, but does this present an opportunity?
14 Nov 2019 Results analysis: ICG Enterprise
In its interim results, ICG Enterprise celebrates its promotion to a new index and continued success...
13 Nov 2019 The parallel worlds of listed private equity
Some private equity trusts are on an average premium of 18%, whilst others trade on discounts of 15%. Are we missing something!?
05 Sep 2019 Fund Analysis
ICG Enterprise Trust gives investors access to outperforming private equities...
24 Jul 2019 Fool's gold?
We examine the relationship between how much a fund costs and how it performs, with surprising results...
18 Jun 2019 Going private: Why should investors consider adding private equity to portfolios?
ICG Enterprise Trust busts some key myths surrounding private equity investing...
15 Apr 2019 Results analysis: ICG Enterprise
Brief review of ICG Enterprise's 31st January Final results, announced 15 April 2019...
10 Apr 2019 Because they're worth it
With the rise of the passives putting more pressure on fees than ever before, we argue that performance fees could be the key to encouraging truly active investment trust managers...
03 Apr 2019 Nice guys finish first
We review the rise of ESG, its impact on investment trusts, and the various ways ESG has evolved in the trust world...
03 Apr 2019 ESG: Impact
27 Feb 2019 A marathon not a sprint
Our research shows that investment trusts' structural advantages give them a significant edge for investors seeking long-term capital growth...
16 Jan 2019 Fund Analysis
Differentiated access to an asset class that continues to outperform...
17 Oct 2018 Missing something?
As more and more of the world's most exciting companies delay listing, the opportunity in private companies has become too large to ignore...
22 Aug 2018 Reassuringly expensive?
Some investment trust premiums have been stretched to eye-watering levels. Have investors been enjoying themselves in the sun too much? We try to rationalise current levels and suggest alternatives...
15 Aug 2018 The income edge
Last year saw investment trusts soar in popularity among both retail investors and wealth managers. We examine why this has happened, as well as the structural advantages of investment trusts for income-hungry investors...
22 Feb 2018 Fund Analysis
ICG Enterprise aims to deliver better than equity market growth over the cycle, through investing in private unlisted companies.
22 Feb 2018 Once bitten, twice shy
Fearful memories of 2008 mean discounts remain wide in the listed private equity sector, despite excellent returns from some of the trusts it contains...
05 Jul 2017 Searching for value
We look at how investment trusts are seeking value in the booming listed private equity sector...
04 Jul 2017 Fund Analysis
A private equity trust that has witnessed a reversal in fortunes following recent management changes...
View all

Welcome to Kepler Trust Intelligence

Please enter a valid email address
Please enter a valid password
Please enter a valid email address
Please check your email. If an account exists you'll be sent instructions on how to reset your password.
To ensure that we are able to provide content which is appropriate for you, please tell us a little about yourself.
Please choose an option
Please enter a company name
Please enter a location name
Please choose an option
Please enter a platform
Please choose an option
Please enter a trust
The information contained herein is not for distribution and does not constitute an offer to sell or the solicitation of any offer to buy any securities in the United States to or for the benefit of any United States person (being residents of the United States or partnerships or corporations organised under the laws thereof). The investment funds referred to herein have not been registered in the United States under the Investment Company Act of 1940 and units or shares of such funds are not registered in the United States under the Securities Act of 1933.
Please confirm
Please select an option
See benefits
A free Kepler Trust Intelligence account allows you to access premium content including the ‘Kepler View’ – our verdict on the trusts we cover – and historical research so you can see how our view has changed over time. An account also unlocks useful facilities like the ‘follow’ button which lets you keep track of the trusts you’re interested in and as a logged in user you can also download PDFs of our research, and choose the layout of the page you’re reading to suit your preference. We will not share your details unless you give us permission to do so, and we won’t bombard you with emails – we only send one a week.
Please select an option
Please enter your first name
Please enter your last name
Please enter a valid email address
An account already exists with this email - have you forgotten your password?
Please enter a valid password
Please enter a valid password
How will this information be used? Your answers help us to tailor our content to relevant investment trusts, and to ensure that the asset allocation and portfolio strategy research we produce is appropriate to our userbase.
Our Website uses Cookies Cookies are small text files held on your computer. They allow us to give you the best browsing experience possible and mean we can understand how you use our site. Some cookies have already been set. You can delete and block cookies, but parts of our site won’t work without them. By using our website you accept our use of cookies. For further information please refer to the Kepler Privacy Notice.
Need help?

One more thing...

Did you know, you can 'follow' individual trusts on Kepler Trust Intelligence? Use the functions below to set up alerts and we'll send you research and updates on your chosen trusts.

Suggested trusts to follow

Browse all funds
Need help?
Current Site Kepler Trust Intelligence is produced by the investment companies team at Kepler Partners and is the UK’s premier source of detailed qualitative research on investment trusts. Absolute Hedge is a market leading UCITS research database providing proprietary research on funds, themes and strategies in the UCITS space. Kepler Liquid Strategies is a Dublin domiciled UCITS fund platform featuring a number of best-of-breed fund managers. Kepler Partners is a corporate advisory and asset raising boutique specialising in the regulated funds market in Europe and investment trusts in the UK.