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The portfolio was valued at £695m at 31 January 2019.
Focus on mid-market and large companies
The Portfolio is biased towards mid-market (47%) and large deals (45%), which we view as more defensive than smaller deals, benefiting from experienced management teams and often market leading positions. Our definition of large deals in a private equity context is those with an entry transaction size of over €500m , which would be small or mid cap for a public company.
Portfolio by investment type %
| Mid-market buyout companies | 47 |
| Large buyouts | 45 |
| Small buyouts | 5 |
| Other | 3 |
Portfolio becoming more geographically diverse
The Portfolio is focused on developed private equity markets: primarily continental Europe (39%), the UK (31%) and the US (26%). Investments in the Asia Pacific region represent 4% of value, which is primarily in developed Asian markets through ICG’s Asia Pacific subordinated debt and equity team, while there is 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. Over the same period, the UK bias has reduced from 45%. We expect both of these trends to gain momentum as the benefits of being part of ICG’s global alternative asset manager platform are further realised.
Portfolio by geography %
| Europe | 39 |
| UK | 31 |
| North America | 26 |
| ROW | 4 |
Bias towards sectors with non-cyclical growth drivers
The Portfolio is weighted towards sectors that primarily have non-cyclical growth drivers, such as demographics, increasing regulation and the provision of “must-have” data. 21% of the Portfolio is invested in healthcare and education and 16% in business services with the remainder of the portfolio broadly spread across the industrial (21%), consumer goods and services (14%), leisure (9%) and technology (10%) sectors.
Portfolio by sector %
| Heathcare and education | 21 |
| Industrials | 21 |
| Business services | 16 |
| Consumer goods and services | 14 |
| Leisure | 9 |
| TMT | 12 |
| Financials | 5 |
| Other | 2 |
Attractive and well-balanced vintage year exposure
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 42% of the Portfolio. Against this, 58% 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.