Intermediate Capital makes strong progress in first quarter
Intermediate Capital Group reported a 10% increase in third-party assets under management over its first quarter on Thursday, to $61.5bn (£44.09bn), or 27% over the 12 months ended 30 June.
The FTSE 100 company noted that it raised $8.2bn during the quarter, in line with its expectations that the 2022 financial year would be a “peak year” in its four-year fundraising cycle.
Looking at Europe VIII, ICG said the latest vintage of the flagship strategy held a first close on 29 April, and raised $3.1bn during the period, with the fund having a 10-year contractual life and charging fees on committed capital.
Deployment activity remained “high”, with $4.5bn deployed on behalf of its direct investment funds.
ICG also made progress on a number of new strategies, having seeded investments for its North America Private Equity, Life Sciences and LP Secondaries strategies during the quarter, and acquired an Australian real estate debt manager.
It also progressed its sustainability and people priorities, launching an environmental, social and governance (ESG)-linked fund-level facility for Real Estate Partnership Capital VI, and joining the Diversity Project.
Looking at its balance sheet, ICG reported liquidity of £652.2m at period-end on 30 June.
“We have started the year with positive momentum,” said chief executive officer Benoît Durteste.
“As previously announced, we expect the 2022 financial year to be a peak year in our four-year fundraising cycle, and are pleased with how strongly the year has begun, benefitting from fundraising being front-loaded as expected.
“In line with our long-term focus, we also continue to invest in the future sustainable growth of ICG.”
Durteste said the level of investment activity across the business remained “elevated”, with its local teams sourcing “attractive opportunities” to invest and realise client capital.
“Our ability to invest globally across the capital structure allows us to thrive in these dynamic market conditions.
“The performance of our funds continues to be strong, reinforcing our track record and investment-led approach.
“With responsible investing being an integral part of our investment process, we have put in place an ESG-linked fund-level financing facility for Real Estate Partnership Capital VI and have adopted an enhanced, thematic approach to our ESG engagement strategy within Europe VIII.”
Those were “important milestones” in the company’s ambitions around sustainability and people, Benoît Durteste said.
“Looking ahead, we are fully focused on delivering our ambitious growth strategy and developing further as a leading global alternative asset manager.”
At 0845 BST, shares in Intermediate Capital Group were up 0.76% at 2,248p.