ICG Enterprise Trust Regulatory News (ICGT)

GRAPHITE ENTERPRISE TRUST PLC

INTERIM MANAGEMENT STATEMENT FOR THE QUARTER

ENDED 31 OCTOBER 2011

Graphite Enterprise Trust PLC ('Graphite Enterprise' or 'the Company') presents its Interim Management Statement for the three months ended 31 October 2011, the third quarter of its financial year.

Unaudited net asset value

In the three months to 31 October 2011 the unaudited net asset value per share fell by 2.6% to 564.8p. In the first nine months of the Company's financial year, the net asset value per share increased by 5.8%.

The depreciation of the euro against sterling in the period accounted for approximately two thirds of the fall in the quarter or 1.7%. A fall in the reported underlying value of the investment portfolio resulted in a 0.7% reduction and expenses and other items accounted for the remaining 0.2%.

The rise in net asset value per share in the first nine months has principally been the result of realisations achieved at valuations above carrying values and increases in the valuations of unrealised investments. Together these generated an increase of 7.4% in the net asset value per share. This was partially offset by other items totalling 1.6%, reducing the increase in net asset value to 5.8%.

Share price and discount

The share price fell by 3.8% to 377.0p in the quarter, while the Company's benchmark, the FTSE All-Share Index, fell by 5.5%. The share price was at a discount of 33.3% to the net asset value per share at 31 October 2011, compared with 32.4% at 31 July.

In the Company's financial year to date the share price has strongly outperformed the Index, rising by 22.4% compared with a fall in the Index of 6.0%. The discount has narrowed from 42.3% at 31 January to 33.3% at 31 October.

Investment portfolio

Investment performance

The underlying value of the portfolio in local currencies fell by £3.2 million or by 0.9% of its opening value in the quarter. The euro fell by 3.4% against sterling, decreasing the sterling value of the portfolio by 2.0% and bringing the total valuation decrease to 2.9%.

No significant realisations took place in the quarter other than those which had already been reflected in the net asset value at 31 July.

The investment portfolio has been valued using the latest available managers' reports. September valuations covering 61.6% of the portfolio had been received by the cut-off date of 29 November. June valuations were used for the remainder.

Portfolio company valuations have not reflected the falls seen across public equity markets since the middle of the year. Although most private equity managers report quarterly, many only perform a full valuation exercise at the end of June and at the end of December.

While comparable quoted valuation multiples have fallen since June, the portfolio reported strong growth in earnings and revenue in the twelve months to 30 June and was also paying down debt. If these trends continue, they would to some extent offset any decline in multiples at the year end.

Proceeds

Proceeds generated by the portfolio in the quarter totalled £7.4 million or 2.1% of its opening value. The largest cash inflow was £5.4 million from the sale of Phadia by Cinven IV, on which the related net asset value uplift was recognised in the results for the period to 31 July 2011. A number of smaller and partial disposals generated a further £2.0 million.

Additions

A total of £18.0 million was invested in the quarter of which £14.4 million was drawn down by funds. This represented 9.5% of opening commitments. A total of 12 new underlying investments were made, of which the two largest were:

- £2.5 million in Lowell Group, through TDR Capital II Fund.

- £1.8 million in Primavista, through Activa Capital Fund II.

A secondary interest in Graphite Capital Partners VI was acquired for £2.5 million and the Company invested £1.1 million in the direct portfolio.

Cash and liquid assets

In the three months to 31 October 2011, cash and liquid asset balances fell by £14.8 million from £75.8 million to £61.0 million:

Balance sheet and commitments

The summary balance sheet as at 31 October 2011 is set out below:

During the period, Company increased its bank facility from £30 million to £60 million. The additional £30 million was provided by Lloyds Bank Corporate Markets on the same terms as the existing arrangements with The Royal Bank of Scotland. The bank facility remains undrawn.

Outstanding commitments fell by £15.4 million or by 10.1% to £137.1 million during the period. Drawdowns of commitments to funds accounted for £14.4 million of the fall and the aggregate of other movements was a further £1.0 million reduction.

The level of overcommitment, which is the amount by which commitments exceed cash and near cash, fell by £2.8 million to £74.1 million, equivalent to 17.6% of total assets at 31 October 2011. If the undrawn bank facility were added to the cash balance, the level of overcommitment would fall further to £14.1 million or 3.3%.

Recent events

The Directors are not aware of any events or transactions, other than as noted above, which have taken place between 31 October 2011 and the date of publication of this statement which have had a material effect on the financial position of the company.

Not audited or reviewed

This information has not been audited or reviewed by the Company's auditors.

For further information please contact:

THE 30 LARGEST UNDERLYING INVESTMENTS

The table below summarises the 30 largest underlying investments, by value, in the Company's portfolio of funds and direct investments as at 31 October 2011. The valuations are gross and are shown as a percentage of the total investment portfolio.

Portfolio analyses at 31 October 2011

Portfolio - Investment type

Portfolio - Geographic distribution

Portfolio - Year of investment

Portfolio - Sector analysis

Investment portfolio 3 and 9 months to 31 October 2011

Commitments analysis - 31 October 2011

1 Original commitments are at 31 October 2011 exchange rates

Ends