ICG Enterprise Trust Regulatory News (ICGT)

ANNOUNCEMENT TO STOCK EXCHANGE

GRAPHITE ENTERPRISE TRUST PLC

5 October 2012

Graphite Enterprise Trust PLC ("Graphite Enterprise" or "the Company") announces that Graphite Capital Partners VI ("CPVI") has today sold its investment in NES Group ("NES"), the international technical recruitment group. NES was the Company's second largest underlying investment at 31 July 2012.

CPVI, which is managed by Graphite Capital, sold NES to funds advised by AEA Investors LP for an enterprise value of £234 million, having backed the management buy-out in September 2006.

The exit price represents a 38% uplift to the carrying value of the investment at 31 July. The uplift to the carrying value at 31 January was 64%.

Taken in isolation, this disposal increases the Company's net asset value per share by 4.7p to 582.1p, or by 0.8% compared with that at 31 July. The Company expects to receive a distribution in the next few weeks.

NES Group's net fee income has more than doubled and EBITDA has trebled under Graphite's ownership. NES has been transformed from being a predominantly UK-focused business into a global operator, with three-quarters of its profitability now generated overseas, across all continents.

Graphite Enterprise's results for the quarter ended 31 October 2012 will be announced on 6 December 2012.

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Notes

Graphite Enterprise Trust PLC

Graphite Enterprise is a London listed investment trust, managed by Graphite Capital. Its objective is to generate long term capital growth through investment in unquoted companies. To achieve this, the Company invests in private equity funds and also directly in private equity backed companies.

Graphite Enterprise invests in buy-outs of mature companies in established European private equity markets. Investments in UK-based mid-market companies are made through funds managed by Graphite Capital. Typically these will be 20-25% of the portfolio. Investments in other sectors of the UK market and in overseas markets are made through third party funds. Direct investments in companies may be made alongside both Graphite Capital and third party funds.

Shareholders of Graphite Enterprise gain exposure to a diverse portfolio of buy-outs of mature, profitable companies in established European private equity markets, with over 300 underlying companies. Graphite Capital directly manages many of the largest companies in the portfolio.

Graphite Enterprise has invested exclusively in private equity and been managed by Graphite Capital throughout its life. On a total return basis, which takes into account the effect of reinvested dividends, the net asset value of the Company has outperformed the FTSE All-Share Index over ten years, returning 138.1% compared with the Index which returned only 83.3%. Since inception, the Company has generated a return of more than 24 times the amount subscribed.

www.graphite-enterprise.com 

Graphite Capital

Graphite Capital is one of the UK's leading mid-market private equity firms with over £1.3 billion of funds under management and has been investing for 31 years. Graphite Capital manages both direct investments in portfolio companies and private equity fund investments. The senior management team has worked together for over 15 years.

Graphite Capital's direct investments focus on buy-outs of companies valued at between £25 million and £200 million in the UK. These investments are made through limited life funds which have a global institutional investor base.

Graphite Capital's fund investments and co-investments are made exclusively through Graphite Enterprise Trust PLC. The focus is on established managers with strong track records operating in mature markets, with the aim of building long term relationships.

Graphite Capital operates from a single office in London with separate teams focusing on direct and fund investments. As it has a long experience both of managing its own funds and investing in third party funds and co-investments, Graphite Capital has an unusually broad perspective when assessing new investment opportunities.

www.graphitecapital.com