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Key messages from ICGT’s 2026 shareholder seminar (our note here) were i) robust 2025 portfolio performance (double-digit EBITDA growth and strong realisation activity), ii) proactive management, inter alia, of the origination network, co-investments, secondary sales, buybacks and dividends,  iii) a strong balance sheet with significant available liquidity, and iv) well positioned for future. It also covered the benefit of having ICG as the manager. ICGT gives investors a unique portfolio of private companies, which have delivered superior long-term growth.

  • Core objective: ICGT aims for PE-levels of returns but with less risk and providing investors with much better liquidity. Risk is reduced by its niche focus (buyouts over venture, developed markets, mid-market and larger over small), with alpha generated from top-tier GP and company selection.
  • Capital allocation: In past notes, we highlighted ICGT’s unique cash returns to shareholders, with i) a progressive dividend (10% CAGR FY’21 to FY’26E), and ii) the highest percentage of shares among peers bought back over three years, with ongoing (at any discount to NAV) and opportunistic programmes.
  • Valuation: ICGT’s NAV valuations are conservative (regular realisation uplifts), the ratings undemanding, and the ongoing carry value against cost is modest. The 36% discount to NAV is anomalous, we believe, with defensive, market-beating returns, and is above pre COVID-19 levels. The 2026E yield is 2.9%.
  • Risks: PE’s post-expense returns are market-beating, but it is an above-average cost model. Experience has been of continued NAV outperformance in economic downturns, but sentiment is likely to be adverse. We believe ICGT’s permanent capital structure is right for unquoted and illiquid assets.
  • Investment summary: ICGT has consistently generated superior returns, by identifying managers and investments where value can be added, with a strategic focus on defensive growth and exploiting ICG synergies. Valuations appear conservative, and governance is strong. It seems anomalous, in our view, to have this record of outperformance and to trade at a discount to NAV.
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