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We reviewed ICGT’s results to end-January 2026 in FY’26 results: look to future realisations. Its defensive growth strategy, focusing on high-quality companies, saw i) through-cycle interest from buyers, ii) good operating company EBITDA and revenue growth, and iii) software exposure modest in size and focused in areas that may benefit from AI adoption. Multiple market dynamics are structurally favourable to further exits, and while there may be quarterly noise around global uncertainties, medium-term realisations look good. The discount appears anomalous with its performance, a conservative NAV and the outlook.

  • 1Q’26 update: i) 1Q NAV p/sh total return 0.1%. NAV p/sh 2,036p at 30 April 2026, ii) £ portfolio return 0.2% (flat on a local currency basis), iii) £34m new fund commitments and £22m total new investments, iv) total proceeds £51m, v) £225m total available liquidity, and vi) £14m buybacks in 1Q, +9p NAV p/sh.
  • Reduced management fee: On 2 June, ICGT announced it was reducing the management fee cap by 20%, staged over two years, to 1.00% of NAV. As an illustration, had the new fee cap been in place during FY’26, management fees would have been reduced by ca.£3.2m (10% or ca.£1.6m at year-1 rate).
  • Valuation: ICGT’s NAV valuations are conservative (regular realisation uplifts), the ratings undemanding, and the ongoing carry value against cost is modest. The 31% discount to NAV is anomalous, we believe, with defensive, market-beating returns, and is above pre-COVID-19 levels. The 2026E yield is 2.8%.
  • 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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