In the second of a two-part Hardman Talks series, Keith Hiscock meets with Colm Walsh, Managing Director of ICG Enterprise Trust, to answer reader-submitted questions across a range of topics. Due to the volume of questions received we have split the interview into two parts. In this episode, Colm focuses on capital allocation, foreign exchange and tariffs, valuations, the discount to NAV and market news.
Watch the interview now to find out more.
Colm explains that ICG Enterprise Trust offers access to a portfolio of resilient, cash-generative companies in North America and Europe. The trust takes an active approach to portfolio management, evolving its strategy to increase exposure to secondaries and direct investments. Shareholder returns remain a priority, with a 2.9% dividend yield and share buyback programmes that have returned 7% of the opening share count over the last two-and-a-half years.
Colm discusses the trust’s nuanced approach to capital allocation, especially in light of wider discounts. While buybacks can be immediately accretive, overuse could reduce share liquidity and future growth potential. On the impact of recent tariffs and dollar weakening, Colm notes the portfolio’s limited exposure to affected sectors and regions, and highlights continued strong fundamentals, including 15% EBITDA growth and a robust balance sheet. The trust’s diversification and experienced managers support resilience through market volatility.
Valuation is a key concern for investors, and Colm outlines a robust framework involving manager-led assessments, oversight by a valuation committee and scrutiny by auditors. Historically, the trust has seen significant uplifts on realisations, evidencing prudent valuation practices. On discounts, Colm acknowledges structural factors and perception issues affecting listed PE funds, but remains confident that increased investor education and continued performance will help close the gap. Regarding US endowment sales of PE assets, Colm sees both challenges and opportunities, and highlights ICGT’s strong secondary capability as a key advantage.
Watch ‘ICG Enterprise Trust – Your questions answered: Part 1’.
In the first episode, Colm addressed why an investor should consider ICG Enterprise Trust, the company’s recent trends in transaction activity across North America and Europe, portfolio construction, buying secondaries and information on ICGT’s portfolio.
Read the latest research on ICG Enterprise Trust.
ICG Enterprise Trust is a London-listed fund investing primarily in profitable, cash-generative private companies in Europe and the US to generate long-term defensive growth. It is the only UK-listed private equity investor that focuses exclusively on investing in buyouts globally. ICGT is one of ca.10% ITs that are “ISA-millionaire” investments.
