Quarterly update for the 3 months to April 2020
- NAV per share of 1,100p; a total return of -4.1%
- Investment portfolio return of -3.8%
- Resilient performance reflects our focus on defensive growth
- Q1 dividend declared of 5.0p
Oliver Gardey, Head of Private Equity Fund Investments, ICG, commented:
“We are encouraged by the resilience shown by the Portfolio in the first quarter of the year, with the majority of our portfolio companies expected to experience only short term headwinds or to be minimally impacted by the COVID-19 pandemic and its economic fallout. We note a number of our portfolio companies are performing well as their business models have adapted to current market conditions. We are also seeing the benefits of the private equity model in more challenged investments, where the ability to react quickly and decisively to the changing economic environment is now more vital than ever.
Our investment approach means that we have built a Portfolio that is focused almost exclusively on buy-outs in developed markets and has minimal exposure to early stage investments or sectors such as financials and energy. Our focus on top tier managers with experience of managing through cycles gives the portfolio access to strong in-house operating capabilities and dedicated support in areas such as managing liquidity and financing, which we believe means they are well placed to manage through current market volatility.
We are pleased with the seamless transition of our team’s remote working capabilities which has allowed our business operations to continue uninterrupted during these challenging times; our staff are the most important part of the business and we are still taking the necessary actions to protect them. Having navigated the initial stages of the crisis, our focus is on actively managing the Portfolio and remaining nimble. While in the short term, we do not expect to see significant new investment activity, when markets stabilise we are well placed to benefit from more favourable entry valuations and take advantage of the opportunities as they arise”