ICG Enterprise Trust Q3 Earnings Call Highlights

ICG Enterprise Trust (LON:ICGT) said net asset value (NAV) per share rose during its third-quarter trading update, while highlighting a sharp improvement in realization activity that management said has supported both NAV progression and portfolio liquidity.

Third-quarter NAV and cash flow

At 31 October 2025, the company reported NAV per share of £20.80. NAV per share total return for the quarter was 2.4%, while the portfolio delivered a 2.3% return on a sterling basis, according to management.

Over the last 12 months to 23 January, the share price total return was 17.3%. During the quarter, £51 million was returned through capital allocation, with management noting that more than half of this total came from share buybacks.

Investment and realization flows were net positive. The company invested £25 million and generated proceeds of £82 million, resulting in £57 million of net cash inflow over the quarter. Management also said it announced an additional £75 million of proceeds after the period end, covering activity from 1 November through “until yesterday.”

Realizations accelerate, with exits above carrying values

Management described realizations as a standout feature of the year to date. After two quieter years for the broader industry in fiscal 2024 and 2025, ICG Enterprise Trust said its quarterly average proceeds have increased to roughly £80 million in the current year to late January, compared with around £40 million per quarter in the prior period.

Over the past 12 months, the company completed 45 full exits. Management said these exits produced a 3.1x multiple of cost and were achieved above book value, equating to an 11% uplift versus carrying value.

Executives said the increased pace reflects a more supportive transaction environment as interest rates have stabilized and buyer confidence has improved, particularly in the U.S. They also pointed to increased pressure on private equity managers to sell assets after a slower realization period, and said the trust’s focus on “strong strategic assets” has helped it realize at a faster rate than some peers.

Management emphasized that exits have come from a broad mix of sectors, citing businesses including Minimax (fire protection), Froneri (ice cream), David Lloyd (health clubs), and Datasite (virtual data rooms). They said the trust’s mid-market focus provides multiple exit routes and reduces reliance on IPO markets, including sales to financial buyers, strategic buyers, and continuation vehicles.

Froneri highlighted as a major realization

As an example of the exit activity, management discussed the realization of Froneri, described as a manufacturer of ice cream. Froneri was the trust’s largest single-company exposure at the end of July, representing around 2.7% of portfolio value.

Management said the business has been backed by PAI Partners, a long-standing manager relationship in the portfolio dating back to 2005. The trust’s investment in Froneri dates to 2013, and management said it reinvested in the company in 2019. The third-quarter realization generated €41 million of proceeds, according to the update.

Balance sheet, manager selection, and secondaries push

Management said the trust remains in a strong financial position, reporting £230 million of total available liquidity at 31 October 2025, a 3% gearing ratio, and an overcommitment ratio of 27%. Executives said the balance sheet provides flexibility for new investment opportunities and supports shareholder returns through buybacks and dividends.

On portfolio construction, executives reiterated the importance of manager selection, particularly as they expect dispersion in private equity manager returns to become more evident. The trust currently has more than 30 active manager relationships in the U.S. and Europe, and management cited firms including New Mountain Capital, Cinven, Leeds Equity, Bowmark, and PAI. They also said they continue to add new managers through market-mapping work, noting a commitment to Stone Point Capital in December 2024.

The company also reiterated its intention to increase medium-term exposure to secondaries, with a target weighting of 25% to 30% of the portfolio, compared with around 15% currently. Post-period end, the trust committed $90 million to ICG LP Secondaries II, following a £20 million co-investment alongside ICG LP Secondaries referred to as “Project Domino.”

In Q&A, management said ICG operates separate strategies for GP-led and LP-led secondaries, rather than combining them. They added that the trust’s secondaries exposure is “predominantly” via ICG secondaries funds, citing the ability to participate in co-investments alongside those funds without fees and carry.

Dividends, buybacks, and outlook

The board declared a Q3 dividend of 9p per share and said it intends a total dividend of 39p per share for fiscal 2026. Management also said that since October 2022 the company has executed £70 million of buybacks, representing about 8.4% of opening shares. Executives said buybacks have added approximately 71p to NAV per share since launch, while also reducing share price volatility and improving trading liquidity.

Looking ahead, management said momentum has carried into the fourth quarter, citing £75 million of proceeds received since 31 October and the completion of three new co-investments. Executives described the broader backdrop as supportive, with stabilized interest rates, higher M&A activity, and a tougher fundraising environment that they said can benefit the trust by improving co-investment deal flow. On return expectations, management said it does not anticipate a repeat of “extraordinary” 2021 and 2022 NAV growth rates, but described its underwriting expectations as around “mid-teens net” over the long term.

About ICG Enterprise Trust (LON:ICGT)

ICG Enterprise Trust is focused exclusively on investing in buyouts in North America and Europe. Through our experience, global network and focus on defensive growth, we seek to deliver attractive long-term returns.