The Strategic Power of Co-Investments: How ICG Enterprise Trust's Datasite Exit Delivers Liquidity and Growth

In a market defined by volatility and uncertainty, private equity investors are increasingly turning to co-investments to unlock value, accelerate returns, and navigate shifting economic tides. ICG Enterprise Trust's recent exit from its co-investment in Datasite—a provider of virtual data room software—offers a masterclass in how these strategies can deliver outsized results, even in a compressed time frame. With a 3% premium on its $18 million stake, a 2.9x multiple to cost, and a hold period so short it defies conventional timelines, this deal is more than a win—it's a blueprint for capitalizing on liquidity in a fragmented market.

Let's break this down. ICG Enterprise Trust (ICGT) entered the Datasite deal in 2024, co-investing alongside ICG Strategic Equity V and CapVest. By 2025, the fund had fully exited its stake for $30 million (£22 million), a 3% premium over its Q1 FY26 valuation. That's not just a profit—it's a testament to the power of co-investments to align with market momentum. Datasite, a U.S.-based company, thrives in a sector where demand for secure digital infrastructure has surged post-pandemic. ICGT's ability to exit quickly suggests it capitalized on a niche with strong tailwinds, even as broader markets grappled with inflation and rate hikes.

The numbers here are staggering. A 19% weighted average uplift to carrying value and a 2.9x multiple to cost across ICGT's 40 full exits in FY25 underscore a disciplined approach to value creation. But what makes Datasite stand out is its brevity. Most private equity deals take five to seven years to mature. Here, ICGT turned a 1.9% portfolio allocation into a 10.2% NAV growth year-over-year—proof that agility can trump patience in the right conditions.

Now, let's zoom out. Co-investments like Datasite aren't just about quick wins—they're about structural advantages. By co-investing alongside private equity funds, ICGT gains access to non-compete clauses, preferential terms, and a pipeline of opportunities that traditional investors can't match. This is particularly critical in a world where liquidity is scarce. While public markets oscillate between euphoria and panic, private equity co-investments offer a “soft landing” for capital, allowing investors to ride sector-specific trends without overexposure to macroeconomic shocks.

But here's the kicker: ICGT didn't just cash out—it retained a 0.3% stake in Datasite through its commitment to ICG Strategic Equity V. This reinvestment strategy is genius. It balances the immediate gains from the co-investment with a long-term bet on the company's future, ensuring that the fund isn't just harvesting a one-time windfall but maintaining skin in the game. In a volatile market, this duality—liquidity and growth—is what separates winners from the rest.

So, what does this mean for investors? First, co-investments are no longer a niche tactic. They're a necessity. The Datasite case shows how private equity managers can exploit market dislocations to buy low and sell higher, even in a short window. Second, the 3% premium achieved by ICGT highlights the importance of timing. In a rising rate environment, assets with recurring revenue streams (like Datasite's SaaS model) are particularly attractive, as they offer predictable cash flows that buffer against macro noise.

For those wary of private equity's illiquidity, ICGT's approach offers a solution. By selectively co-investing in high-conviction plays and exiting when the math is right, funds can create a “liquidity ladder”—returning capital to shareholders through dividends or buybacks while retaining upside in the most promising companies. This is exactly what ICGT did, delivering a 10.5% NAV total return for FY25.

In closing, the Datasite exit isn't just a case study—it's a call to action. As markets continue to pivot between growth and value, investors must embrace strategies that marry flexibility with firepower. Co-investments, when executed with the precision ICGT has shown, are the bridge between today's volatility and tomorrow's growth. For those willing to think beyond traditional portfolios, the lesson is clear: liquidity isn't a constraint—it's an opportunity.

Now, go out there and find your Datasite.