Intermediate Capital Group (ICG) has acquired Graphite Enterprise Trust, the fund investment business of Graphite Capital, for about £20 million (€27.2 million; $29.4 million), according to the firms.
The unit, which will be renamed ICG Enterprise Trust and will be headed by Emma Osborne, will form a new business within ICG. The change will take effect on 1 February, according to a regulatory filing with the London Stock Exchange.
Established in 1981, Graphite Enterprise Trust is a London-listed investment trust making primary and secondaries fund investments and co-investments. Initially, it focused on investing in Graphite Capital’s own funds but in the past decade it has expanded to include other private equity funds in the UK and in the rest of Europe.
ICG and Graphite Enterprise have had a close relationship for 25 years as Graphite was a founding investor in ICG in 1989 and has invested in five ICG funds. Graphite Enterprise Trust’s investments in ICG funds accounted for 4 percent of its portfolio as of 31 October.
The acquisition will provide access to new secondaries and co-investment opportunities through the leveraging of ICG’s global office network and local relationships. Additionally, under the new agreement, the firms will not be paying a management fee on commitments to or investment in funds managed by either party.
Graphite Enterprise Trust’s portfolio generated £10.1 million in cash in the three months ended 31 October, according to the filing. It makes primary commitments to new funds, secondaries purchases of stakes in existing funds and direct co-investments alongside funds.
Mezzanine powerhouse ICG launched a secondaries platform at the end of 2014 by hiring a specialist team from NewGlobe Capital including its founder Andrew Hawkins.