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The key issues from ICGT’s results (reviewed in FY’26 results: look to future realisations) continue to apply. Its defensive growth strategy i) sees through-cycle interest from buyers, ii) delivers good operating company EBITDA and revenue growth, and iii) limits software exposure both 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, conservative NAV and outlook.

  • Company insights:  ICGT website has industry and company-specific insights.  The August managers’ newsletter focused on private market fundamentals and portfolio resilience theses we have explored in multiple previous notes. It referred to the market report on recent strong private company performance.
  • Director buying:  Recent months have seen multiple directors buying in the market (see announcements on 19 August, 30 July and 1 July). In our view, directors buying the market is a clear sign of confidence, especially when more than one director is involved and there are multiple purchases.
  • Valuation:  ICGT’s NAV valuations are conservative (regular realisation uplifts), the ratings 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 pre-COVID-19 levels. The 2026E yield is 2.6%.
  • 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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