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MULTIPLE OF COST OF REALISATIONS
Six months ended 31 July 2021
Realisations at significant Uplifts to Carrying Value and cost
Realisation momentum experienced in the first quarter continued apace into the second quarter, with Realisation Proceeds for the six month period higher than the average annual Realisation Proceeds for the last five years.
Total Proceeds for the period amounted to £184m. This was comprised of £175m generated from the realisation of individual companies (either held directly or through funds) and £9m of proceeds from Fund Disposals.
There were 34 Full Exits completed in the period which realised £143m of proceeds. These realisations were completed at an average of 26% Uplift to Carrying Value and an average Multiple to Cost of 2.8x. A further £32m of proceeds were received from partial exits.
Five of our Top 30 companies at the beginning of the financial year were fully realised during the period. The largest exit was Telos, the 2nd largest investment at the start of the financial year, which we fully realised early in the period at a slight uplift to the 31 January 2021 carrying value. Our investment in DomusVi (the third largest underlying company at the start of the year) alongside ICG Europe Fund VI was fully realised in the period. Given the strength of the business and continued opportunity for growth, we subsequently decided to make a partial reinvestment in DomusVi alongside ICG Europe Fund VII. Other notable realisations included the exit of another ICG investment, Supporting Education Group (which was the 10th largest underlying portfolio company at the start of the year), System One and Cognito. Also in the period, third party manager Graphite Capital entered into an agreement to sell U-POL to US-listed Axalta Coating Systems. We anticipate the transaction will close in the second half of the year, generating cash proceeds of c.£24m.
A small number of Fund Disposals were also completed during the period, generating £9m of proceeds and releasing £10m of Undrawn Commitments.