ENTERPRISE TRUST ICG ENTERPRISE TRUST PLC TRUST ENTERPRISE ICG A leading listed private equity investor Generating long term growth for shareholders Annual Report and Accounts 2019 Accounts and Report Annual ICG ENTERPRISE TRUST PLC Annual Report and Accounts 2019 ICG enterprise trust Highlights of the year We focus on delivering consistently strong returns through investing in profitable 1,057P +12.4 %1 +3.0%1 private companies, primarily NAV PER SHARE NAV PER SHARE Share price (31 January 2018: 959p) total return total return in Europe and the US. (31 January 2018: 12.5%) (31 January 2018: 20.1%) We do this by investing in companies managed by ICG and other leading private equity managers, directly and through funds. 22P +15.0%1 +35.0%1 Dividend Portfolio return Realisation uplift (31 January 2018: 21p) on a local to previous A flexible mandate and highly selective currency basis carrying value approach allow us to strike the right balance (31 January 2018: 16.4%) (31 January 2018: 40%) between concentration and diversification, risk and reward. Our continued strong performance 01 02 04 reflects the high quality of the Portfolio Strategic report Governance Supplementary Information and the benefits of our highly selective 2 At a glance 40 Board of Directors 86 The 30 largest fund investments 4 Chairman’s statement 42 Corporate governance report 88 Private equity explained investment approach and focus on 6 Investing in private equity 45 Report of the Directors 90 Portfolio analysis 8 Our approach 48 Investment policy 90 Realisation activity defensive growth companies. 10 How we create value 49 Directors’ Remuneration Report 90 Investment activity 12 A strong track record 52 Report of the Audit Committee 91 Commitments analysis Jeremy Tigue, Chairman 14 Key performance indicators 54 Additional disclosures required 92 Currency exposure 16 Manager’s review by the Alternative Investment Fund 92 Dividend analysis 24 Market review Managers Directive 93 Glossary FOCUSED 26 30 largest underlying companies 55 Statement of Directors’ 30 ICG Enterprise Trust Team responsibilities 32 Corporate social responsibility FLEXIBLE 34 Principal risks and uncertainties 05 03 Shareholder Information SELECTIVE 97 The Annual General Meeting Financial statements 98 Notice of meeting 57 Independent auditors’ report to the 99 Notice of meeting: explanatory notes members of ICG Enterprise Trust plc 101 Useful information 63 Income statement 102 How to invest in ICG Enterprise 64 Balance sheet 1 This is an Alternative Performance Measure (“APM”) 65 Cash flow statement We assess our performance using a variety of measures that are not specifically defined under IFRS and are therefore termed APMs. These 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 icg-enterprise.co.uk 66 Statement of changes in equity peers and its previously reported results. The Glossary includes further details of APMs and reconciliations to IFRS measures, where appropriate. Throughout this report, all share To view and download our Annual Report online 67 Notes to the financial statements price and NAV per share performance figures are stated on a total returnbasis (i.e. including the effect of reinvested dividends). Strategic Governance Financial Supplementary Shareholder AT A GLANCE report statements Information Information We combine our proven strategy and balanced approach with the strength of ICG’s global platform The Company Our unique approach Proven strategy ICG Enterprise Trust listed on the London Stock ICG Enterprise is unique in the listed private equity sector in Exchange in 1981, raising £23m. It has since grown A leading listed private equity investor. its net assets to £731m, generating significant combining directly managed investments with those managed by value for shareholders through multiple cycles. third parties, both directly and through funds. Providing shareholders with access to a portfolio of investments in profitable private companies, primarily in Europe and the US. 1 Focused Flexible Selective We invest directly and through funds with 38 £731m on strong and investment mandate investment driving a flexible mandate that enables us to both YEAR Track RECORD NET ASSETS consistent returns enables us to both consistently strong enhance returns and manage risk, optimising by investing in enhance returns and returns, while limiting the portfolio mix and capital deployment. profitable private manage risk. downside risk. companies, primarily in 42x £239m Europe and the US. return on original returned to Data as at 31 January 2019 capital raised shareholders 1 31 January 2018: £664m since listing the manager a Global network Global alternative asset manager in ICG has offices in: private debt, credit and equity. • London • Stockholm • Hong Kong • New York • Frankfurt • San Francisco A leading global alternative asset manager • Paris • Luxembourg • Singapore Expertise Access Insights with €35bn of assets under management • Madrid • Warsaw • Sydney and long track to proprietary deal into private equity across 18 strategies. • Amsterdam • Tokyo record of lending flow from the wider managers and ICG focuses on providing capital to help to and investing ICG network and companies through companies grow. It develops long term in private equity through relationships local investment teams relationships with its business partners to deliver 30 €35bn backed businesses. across the private across the globe. value for shareholders, clients and employees. YEAR Track RECORD assets under equity asset class. management ICG invests across the capital structure, with an objective of generating income and consistently ICG Enterprise benefits from access to the proprietary deal flow high returns while protecting against investment of investments from ICG’s network and its expertise and insights downside. 13 >300 gained from 30 years of investing in private markets. countries employees Data as at 31 December 2018 2 ICG ENTERPRISE TRUST Annual Report and Accounts 2019 ICG ENTERPRISE TRUST Annual Report and Accounts 2019 3 Strategic Governance Financial Supplementary Shareholder Chairman’s statement report statements Information Information Strong growth across the Read more: We have a high quality Portfolio board of directors 40 that is increasingly geographically portfolio delivers another corporate year of double digit growth diverse and continues to produce Governance 42 consistently strong returns Performance to 31 January 2019 Strengthening of the ICG As part of this process, Alastair Bruce joined Progress against Enterprise team and succession the Board in May 2018 and became Chairman strategic goals FTSE All-Share Index 431% ICG continues to invest in the development of the Audit Committee in February of this Share price of the investment team, which has year. Andrew Pomfret will be retiring from Net asset value per share Investment portfolio benefitted significantly from the enhanced the Board at the forthcoming AGM, having All figures are on a total return basis. as % of net assets support and oversight provided by ICG, served for over eight years, and I would as a leading alternative asset manager. like to thank Andrew for his wise counsel and guidance. 173% The team has grown over the last three 95% 148% years. We now have an investment team Jane Tufnell will join the Board later this By increasing the capital invested in 67% 75% with over 60 years’ combined experience month. She brings extensive financial services 63% 54% individual 29% 31% in private equity, which is supported by and investment management experience to 12% 82% co-investments, the (4)% 3% oversight from ICG on the Investment the Board, and I welcome her. We expect to team has been able to 1 year 3 years 5 years 10 years Committee, which includes ICG’s Chief appoint one further non-executive director increase capital Investment Officer and Chief Executive, during the course of this year and I intend to deployment without Benoît Durteste, and Andrew Hawkins, step down from the Board during 2020, the team being any less selective. ICG’s Head of Private Equity Solutions. We when I will have served on the Board for Strong underlying earnings growth and previous year and 33% in 2016. A key driver 2016 2019 also have a strong dedicated team in legal, 12 years. We will continue to evolve the realisations at material uplifts to carrying of this has been the increase in proprietary HIGHLIGHTS finance and IR and access to a number of Board and make further appointments, value have driven another year of double deal-flow from ICG. Over the last five years, specialist shared resources, including risk, as appropriate. digit growth and I am delighted to report high conviction investments have generated Increase amount deployed into treasury, compliance and IT. a strong set of results. NAV per share a return of 19% p.a.2 in local currencies, and high conviction investments A cautious and selective as % of capital invested 1,057p increased from 959p to 1,057p, a 12.4% we expect them to continue to produce Emma Osborne, who has led the Company’s approach remains key in the NAV per share total return, significantly outperforming strong returns. investment team since 2004, will be moving current environment the loss from the FTSE All-Share of -3.8%. to a senior adviser role within ICG at the The Portfolio is more geographically The macro-economic backdrop remains 50% Our high conviction end of 2019. Over the last 14 years, uncertain, geopolitical risks are increasing investments Continued progress towards diverse. In particular, we have made a number Emma has built a strong multi-disciplined and volatility is rising. Against this backdrop, (co-investments, strategic goals of new commitments and co-investments in secondary fund investment team with significant private the Manager remains patient and selective We continue to make excellent progress the US, which now represents 26% of the 33% investments and ICG equity expertise and a strong track record in deploying capital, focusing on towards our strategic goals.