Analysis

The portfolio was valued at £794m at 31 July 2019.

Focus on mid-market and large companies

The Portfolio is weighted towards the mid-market (44%) and large deals (48%), 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 (37%), the UK (29%) and the US (29%), 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 (22%), business services (14%) and TMT (13%). The remainder of the Portfolio is broadly spread across the industrial (20%), 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 %

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 35% of the Portfolio. Against this, 65% 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.