Intermediate Capital AUM improves as portfolio size shrinks

Intermediate Capital published a trading statement for the three months to 31 December on Tuesday, with total assets under management up 3% to €22.6bn in the quarter.

The FTSE 250 company reported €0.6bn of new third party money raised in the three months, with third party fee-earning assets under management up 5% to €17.3bn

Its board said fundraising performance was in line with expectations, driven by a final close on its Asia Pacific Fund III and a further close on its Strategic Secondaries Fund

The investment portfolio reduced 4% in the quarter, however, with the board saying the pace of realisations outstripped new investments made.

Its investment portfolio performance remained “robust”, the board added, with funds performing in line with expectations.

“I am pleased to report ICG's third quarter trading is in line with expectations,” said CEO Christophe Evain.

“Third party assets under management grew further in the third quarter, with €0.6bn raised, resulting in total AUM increasing to €22.6bn.”

Evain said both fundraising and capital deployment remained on track, and Intermediate Capital retained visibility of good fundraising momentum through the next 12 months.

“Current market conditions are sustaining a positive trend favouring alternative asset classes which we are well positioned to capitalise on.”

Intermediate Capital reported a well-funded balance sheet at period end, with cash and unutilised bank lines of £899.8m, up from £802.1m at the start of the quarter, and no material refinancing requirements in the next 12 months.

The company said it was continuing to target a return on equity of over 13% by further growth in the profitability of the business, and maintaining an efficient balance sheet with a gearing of between 0.8x and 1.2x.