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The portfolio was valued at £783m at 31 October 2019.
Focus on mid-market and large companies
The Portfolio is weighted towards the mid-market (42%) and large deals (50%), which we view as more defensive than smaller deal sizes, benefiting from experienced management teams and often leading market positions.
Portfolio by investment type %
Portfolio becoming more geographically diverse
The Portfolio is focused on developed private equity markets: primarily continental Europe (36%), the UK (30%) and the US (30%), with minimal emerging markets exposure. In line with one of our strategic objectives, our weighting to the US has increased from 14% at the time of the move to ICG in 2016. We have a target to increase the US focus to 30% – 40% of the Portfolio and it is pleasing to see that a combination of performance and new investment has resulted in us reaching the threshold of this target in three years.
Portfolio by geography %
Portfolio bias towards sectors with defensive growth characteristics
The Portfolio is weighted towards sectors that primarily have non-cyclical growth drivers, such as healthcare and education (23%), business services (12%) and TMT (14%). The remainder of the Portfolio is broadly spread across the industrial (22%), consumer goods and services (14%), and leisure (8%) sectors. Even in sectors which appear cyclical, many of the underlying investments are focused on defensive niches.
Portfolio by sector %
|Heathcare and education||23|
|Consumer goods and services||14|
Portfolio vintage remains balanced
The Portfolio’s maturity profile balances near-term realisation prospects with a strong pipeline of medium to longer-term growth. Investments completed in 2015 or earlier, which are more likely to generate gains from realisations in the shorter-term, represent 48% of the Portfolio. Against this, 52% of value is in investments made in 2016 or later, providing the Portfolio with medium to longer term growth potential as value created within these businesses translates into gains.