We were pleased to be featured in the AIC’s article titled “Which investment trusts would have made you an ISA millionaire“.
To be included is recognition of the strong returns our asset class can deliver, and proof our investment strategy focused on resilient companies is delivering long-term compounding returns to our shareholders.
It is the time of year where many reports on private equity are being released (see McKinsey and Bain here). The headline is that 2025 was an improved year of activity, but nuance remains – what’s being described as a “K-shaped recovery”1. What chimed with us most was:
Realisations
Market:
The 2025 global buyout realisation rate remained subdued at 14%, a similar level to 2022-2024 levels.
ICGT:
ICGT saw a marked improvement in realisation activity, recording a realisation rate2 of 25%. These were broad-based across sectors, and reflects our focus on high-quality companies and managers who are able to execute exits in a more selective environment.
Fundraising
Market:
Global buyout fundraising fell 16% year-on-year; however investor sentiment remains supportive with the majority intending to maintain or increase their PE allocations.
ICGT:
This is a favourable dynamic for ICGT, creating competition for capital and making ICGT a valuable partner for our managers’ co-investment opportunities. During the year we made eight new primary fund commitments and executed on five new co-investments.
Operational value creation
Market:
Operational improvement is increasingly important to value creation – analysis suggests 10-12% annual EBITDA growth is required to generate a 2.5x return over a five-year hold.
ICGT:
ICGT’s Portfolio recorded 15.2% EBITDA growth in the 12 months to July 20253. Our focus remains on companies with clear operational levers and managers with strong operational execution capability.
The last few weeks have seen uncertainty around public market software companies. ICGT’s investment mandate is flexible and not sector specific, benefitting from various long-term growth trends. Where we do own software, exposure is typically in mission-critical companies in accounting, payroll or compliance, which we view as more resilient.
We’ll discuss this and more in our Shareholder Seminar next Tuesday (10 March) – professional investors and analysts can register here. A recording will be available on our website shortly after.
With best wishes,
Oliver and Colm
Past performance is not a reliable indicator of future results.
Unsure of some of these terms? See our Glossary.
1 Bain & Company, Feb 2026, “Welcome to a new era in private equity”
2 Total Proceeds as a % of Opening Portfolio, in the twelve months to 29 January 2026
3 Reflects Enlarged Perimeter, 61% of Portfolio Value at 31 July 2025
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