Intermediate Capital Group reports sharp drop in 1H profit, but alongside robust fundraising

Intermediate Capital Group reported a jump in third party fee income and profit at its Fund Management Company for the half, offset by a loss at the Investment Company.

Nonetheless, the private equity investor also reported robust fundraising over the period, despite the "challenging" macro backdrop, and an "attractive" performance by its funds despite volatility in markets.

Indeed, rising interest rates and dislocation in markets had positively impacted a number of its strategies.

The firm raised $6bn of funds over the six months ending on 30 September with the tally for the last 18 months hitting $28bn.

Its Europe VIII, Strategic Equity IV and Asia Pacific IV funds all saw final closes above their initial target size.

Third-party fee income jumped by a third over the period, when compared to the first half of the prior financial year, to reach £265.3m.

Fund Management Company profit before tax meanwhile increased by 19% to £143.7m.

But the Investment Company lost £108.1m, down from a year earlier profit of £143.8m.

All told, group profit before tax cratered from £264.7m or 83.9p to £35.6m or 13.5p.

The balance sheet's net gearing at period end stood at 0.55 times.

Separately, the company announced the appointment of William Rucker as its new chairman.

The interim dividend was hiked from 18.7p to 25.3p.