ICG (ICG) Status Update summary

Strategic Equity Strategy Overview

• Strategic Equity V closed at $11 billion, more than double the prior vintage, reflecting rapid growth and strong investor demand.

• The strategy focuses exclusively on single-asset continuation vehicles, targeting high-quality, market-leading businesses with strong management, recurring revenues, and multiple growth vectors.

• Over $19 billion has been committed to transactions since 2014, with a 25% net IRR over a 10+ year track record.

• The team is the most established in the sector, with 25 dedicated professionals and a strong market reputation for certainty and speed of execution.

• Fee-earning AUM has grown at a 59% CAGR over the past decade to $14.3 billion, now representing 20% of total fee-earning assets.

Market Dynamics and Competitive Positioning

• GP-led secondaries have grown to 44% of overall secondaries volumes, with projections to reach at least half by 2028.

• Strategic Equity is the only fund among the largest secondaries funds focused exclusively on GP-led transactions, enabling $1 billion+ single-asset commitments and a unique value proposition.

• The fund has made the 10 largest single-asset continuation vehicle commitments ever, occupying all top 10 largest commitments in the market.

• Barriers to entry remain high, with new entrants facing significant challenges in scaling and building teams.

• The franchise enjoys a strong moat and first-mover advantages, positioning it as a partner of choice for blue-chip, large single-asset continuation vehicles.

Investment Approach and Risk Management

• Focus is on assets where sponsors wish to retain ownership, not sell, ensuring alignment and lower risk of surprise.

• Sponsors typically roll over their entire carried interest, signaling strong alignment and confidence in the asset.

• No portfolio-level leverage is used; asset-level leverage is lower than typical buyouts, reducing systemic risk.

• The strategy delivers buyout-level returns with lower risk and shorter duration, supported by high-quality, cash-generative companies.

• Underwriting standards and deployment pace have been maintained despite significant fund growth.