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Introduction & Market Context
ICG Enterprise Trust PLC (LON:ICGT) presented its Q1 FY2026 trading update on June 24, 2025, highlighting portfolio resilience amid challenging market conditions. The private equity investment trust reported positive local currency returns that were ultimately offset by currency headwinds during the quarter ending April 30, 2025.
According to the presentation, the fundraising environment remains difficult, particularly for first-time funds, though credit availability is not currently hindering buyout activity. Many investors are seeking balanced exposure to North America and Europe, aligning with ICG’s strategic focus.
The company’s shares closed at £1,388 on June 30, 2025, representing a decline of 0.58% for the day, according to market data. The stock has traded between £1,064 and £1,418 over the past 52 weeks.
Quarterly Performance Highlights
ICG Enterprise Trust delivered a portfolio return of 0.6% on a local currency basis for Q1 FY2026. However, when translated to Sterling terms, the portfolio experienced a decline of 2.4% due to foreign exchange impacts. This resulted in a NAV per share total return of -2.6% for the quarter, with closing NAV per share standing at 2,011p.
Despite the quarterly headwinds, the company’s long-term track record remains strong, with a 12.4% total share price return for the last twelve months to June 20, 2025.
As shown in the following quarterly performance summary:
This performance should be viewed in the context of ICG’s longer-term results. The company has maintained strong annualized returns of 14.8% for NAV per share total return over the past five years and 13.4% over the past ten years, demonstrating consistent performance through market cycles.
Strategic Portfolio Management
The quarter was marked by significant portfolio activity, with £149 million in total proceeds from realizations, including 45 full exits over the last twelve months. These exits achieved an impressive 15% uplift to carrying value and a 3.0x multiple of cost, validating the company’s investment approach.
ICG Enterprise Trust’s investment strategy continues to focus on resilient companies through a systematic filtering process, as illustrated in their investment approach:
Notable transactions during the quarter included the sale of a portion of the portfolio, generating £62 million in net cash proceeds at a 5.5% discount while crystallizing a strong 15% IRR (1.6x return). Additionally, the company completed the realization of Minimax, which was previously the largest portfolio company holding, generating £48 million in cash proceeds.
The company’s strategic portfolio management is further illustrated by these significant liquidity events:
On the investment side, ICG committed £76 million to new funds and deployed £48 million in total new investments during the quarter. The presentation highlighted a case study of their relationship with Integrum, a US-based manager focused on resilient businesses in less cyclical sectors within financial services, demonstrating ICG’s approach to manager selection.
Shareholder Returns & Distributions
ICG Enterprise Trust continues to prioritize shareholder returns through a combination of dividends and share buybacks. The company announced a Q1 FY2026 dividend of 9p per share, continuing its progressive dividend policy that has been in place since 2017.
Over the last twelve months to April 30, 2025, the company returned £60 million to shareholders, with approximately two-thirds coming from share buybacks. This represents a significant increase in capital returns compared to previous years, as shown in the historical distribution chart:
The company has executed £60 million in share buybacks, buying back 7% of opening shares and generating 58p (3.0%) NAV per share accretion. This demonstrates ICG’s commitment to enhancing shareholder value through multiple channels.
Balance Sheet Strength
ICG Enterprise Trust maintains a robust balance sheet with £202 million in total available liquidity as of April 30, 2025. The company operates with conservative financial metrics, including a low gearing ratio of 3% and a modest overcommitment ratio of 26%.
This strong liquidity position provides the company with flexibility to pursue attractive investment opportunities while maintaining a conservative financial profile, as illustrated in their balance sheet overview:
The company’s financial strength is particularly valuable in the current market environment, where fundraising remains challenging and investors are increasingly selective about their private equity allocations.
Long-Term Performance & Outlook
Despite the quarterly fluctuations, ICG Enterprise Trust has delivered consistent long-term performance. The company’s 5-year and 10-year annualized returns demonstrate its ability to generate value through different market cycles:
When compared to broader market indices, ICG’s performance reflects its specialized investment approach. The five-year performance comparison shows varying results against the FTSE All-Share Index:
Looking ahead, ICG Enterprise Trust appears well-positioned to navigate the challenging fundraising environment while capitalizing on investment opportunities through its disciplined approach to portfolio construction and active management. The company’s focus on resilient companies in developed markets, combined with its strong balance sheet and experienced investment team, provides a solid foundation for continued long-term performance despite near-term currency and market headwinds.
Full presentation:
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