ICG Enterprise Trust Regulatory News (ICGT)

ANNOUNCEMENT TO STOCK EXCHANGE

GRAPHITE ENTERPRISE TRUST PLC

8 August 2013

Graphite Enterprise Trust PLC ("the Company") announces that Graphite Capital Partners VII ("Graphite VII") has sold its investment in Willowbrook Healthcare ("Willowbrook"), the operator of premium quality care homes for the elderly. Willowbrook was the Company's sixteenth largest underlying investment at 30 April 2013.

Graphite VII established Willowbrook in October 2008 and has sold the business to the management team with the backing of a large US healthcare property investor.

The exit price represents an uplift of more than 40% to the gross carrying value of the investment at 30 April. Taken in isolation, the effect of the disposal is to increase the Company's net asset value per share by 2.8p to 638.5p, or by 0.4% compared with that at 30 April. Graphite VII is expected to distribute proceeds of approximately £7 million to the Company shortly.

This exit, taken together with the events reported in the June interim management statement (the disposal of Vue Entertainment, flotation of Partnership, and performance of Graphite VII portfolio), increases net asset value per share by approximately 2.8% since 30 April.

Willowbrook has been a successful investment for Graphite, growing to 13 freehold homes with capacity for 880 residents and 938 employees in the four years since its inception. All of these homes were newly built and are among the highest quality care homes in the UK. Willowbrook's very high standards of care have enabled it to achieve high occupancy levels and a strong financial performance.

The disposal of Willowbrook represents the fifth disposal by Graphite Capital in the last ten months, following the exits of NES Group, Tileco, Optimum Healthcare and Dominion Gas.

The Company's results for the six months ended 31 July 2013 will be announced on 25 September 2013.

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Graphite Enterprise Trust PLC

Graphite Enterprise Trust PLC ("Graphite Enterprise" or "the Company") aims to provide shareholders with long term capital growth through investment in unquoted companies. To achieve this, the Company invests in private equity funds and also directly in private companies.

The Company was listed in 1981 and has invested exclusively in private equity and been managed by Graphite Capital throughout its life.

Graphite Enterprise provides access to a diverse portfolio of buy-outs of mature, profitable companies in established European private equity markets. The Company invests in in UK-based mid-market companies through funds managed directly by Graphite Capital. Typically these will make up 20-25% of the portfolio. Investments in other UK companies and in overseas markets are made through funds managed by third parties. The Company does not invest in start ups or early stage businesses. 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.

Since inception, the Company has generated a return of more than 26 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 £1.2 billion of funds under management. It has raised and managed funds for 32 years. The senior management team has worked together for 16 years.

Graphite Capital manages both direct investments in portfolio companies and private equity fund investments.

Direct investments are predominantly made through limited life funds which have a global institutional investor base. The focus of direct investments is on UK mid-market buy-outs of companies valued at between £40 million and £150 million across a range of industry sectors and on smaller companies with roll-out potential valued at £25 million or more.

Fund investments are made exclusively by Graphite Enterprise. The focus is principally on European buy-out funds, but there is also some exposure to the USA and to growth capital and mezzanine funds. The investment strategy is to back private equity managers with strong track records operating in mature markets, with the aim of building long term relationships.

As it has a long experience both of managing its own funds and of investing in third party funds, Graphite Capital has an unusually broad perspective when assessing fund and co-investment opportunities. Graphite Enterprise benefits from both the expertise of a dedicated fund investment team as well as the insights of Graphite Capital's direct investment team.

www.graphitecapital.com