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In key messages from the 3Q update were i) NAV p/sh. 2,080p (31 Jul 2025: 2,040p), ii) 3Q NAV p/sh. total return 2.4%, iii) strong realisation activity with £82m total proceeds in the quarter, iv) 3Q new investments £25m (YTD £138m), v) robust balance sheet: with 3% gearing ratio and £230m total available liquidity, vi) 3Q dividend 9p p/sh. Since the October 2022 launch of the long-term buyback programme, ICGT has bought back 8.4% of its shares, adding 71p (3.5%) to NAV p/sh. total return. There has been strong momentum post period-end: £75m total proceeds; £43m investment; and £76m fund commitments (inc. $90m/£67m to ICG LP Secondaries II). ICGT’s 2026 outlook is here.

  • Returns to shareholders: News on ICGT’s balanced capital return policy includes: i) ICGT raised FY’26 dividend guidance from 38p to 39p p/sh. (FY25: 36p), and ii) the board reconfirms the long-term share buyback programme is intended to operate at any discount to NAV, reinforcing its potential to close the discount.
  • Long term: Over five years, ICGT’s constant-currency CAGR portfolio return was 14.9%, and the NAV p/sh. total return 12.8%. The return consistency generates compounding benefits. Shareholder return was 16.4% (narrower discount) and ICGT is one of ca.10% of ITs that are “ISA-millionaire” investments.
  • Valuation: ICGT’s NAV valuations are conservative (regular realisation uplifts). The ratings are undemanding, and the ongoing carry value against cost is modest. The 27% discount to NAV is anomalous, we believe, with defensive, market-beating returns, and is above the levels seen pre COVID-19. The 2026E yield is 2.6%.
  • Risks: PE’s post-expense returns are consistently market-beating, but this is an above-average cost model. Even though actual experience has been of continued NAV outperformance in economic downturns, 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 adding value in an attractive market, having a strategic focus on defensive growth and exploiting ICG synergies. Valuations appear conservative, and governance is strong. ICGT focuses on delivering resilient, risk-adjusted returns. The risks are primarily sentiment-driven on costs and cyclicality, and on the liquidity of the underlying assets. It seems anomalous, in our view, to have a consistent record of outperformance and to trade at a 27% discount to NAV.
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