Intermediate Capital 1st Quarter Results
25 July 2017 - 4:00PM
UK Regulatory
TIDMICP
Highlights
-- Inflows in the first quarter were EUR0.6bn with robust demand for current
fund raising; inflows in the second quarter will be higher as a result of
fund closes, notably in respect of our Senior Debt Partners strategy
-- Total AUM 2% lower at EUR23.3bn and third party fee earning AUM 3% lower
at EUR18.2bn due to strong realisations and the strengthening of the Euro
against the USD (7%) and GBP (3%)
-- Fund investment in line with expectations despite a competitive
investment market
-- Fund performance remains strong benefitting from robust portfolio
performance
Commenting, Christophe Evain, CEO, said:
"I am pleased with our start to the financial year, with both
fundraising and capital deployment remaining on track. Our expectation
continues that this will be a strong fundraising year and we will be
able to maintain the deployment pace of our funds.
As I hand over to Benoit Durteste as CEO at our AGM later today, I am
proud to have led the team which has brought about the transformation of
ICG to the specialist, alternative asset manager that it is today. Our
success is built on a disciplined investment culture, an entrepreneurial
approach to deals, and local access and insight. I am proud to be
leaving ICG in such an excellent position."
Business review
Total assets under management have decreased 2% over the three months to
30 June 2017 to EUR23.3bn following an as expected quieter quarter for
fundraising along with the continued healthy pace of realisations and
the adverse impact of FX on US Dollar denominated funds. Demand for our
Senior Debt Partners strategy has been strong with post quarter end
inflows in line with expectations for a first close before the half
year. With good visibility for further fundraising it remains our
expectation that this will be a strong fundraising year, exceeding our
long term fundraising target of EUR4bn per annum. Third party AUM by
strategic asset class at 30 June 2017 was as follows:
Total
Corporate Investments Capital Market Investments Real Asset Investments Secondary Investments Third Party AUM
EURm EURm EURm EURm EURm
At 31 March
2017 10,805 6,171 3,290 1,551 21,817
Additions 428 39 147 31 645
Realisations (162) (120) (83) - (365)
FX and other (215) (199) (91) (109) (614)
At 30 June
2017 10,856 5,891 3,263 1,473 21,483
Fee earning
AUM - at 30
June 2017 8,545 5,891 2,465 1,317 18,218
Fundraising in the quarter included closing EUR428m for our Senior Debt
Partners strategy and EUR147m for our Real Estate Senior Debt strategy.
Capital deployment in the quarter has remained on track despite a
competitive investment market. The total amount of capital deployed on
behalf of our direct investment funds was GBP454m in the quarter (three
months to 30 June 2016: GBP456m). The direct investment funds are
investing as follows, based on third party funds raised at 30 June 2017:
Strategic % invested at % invested at Assets in fund at Deals completed
asset class Fund 30 June 2017 31 March 2017 30 June 2017 in year to date
Corporate ICG Europe
Investments Fund VI 42% 40% 9 1
North
American
Corporate Private
Investments Debt Fund 68% 64% 13 1
Senior Debt
Corporate Partners
Investments II 74% 64% 27 4
Corporate Asia Pacific
Investments Fund III 44% 44% 4 0
ICG Longbow
Real Asset Real Estate
Investments Fund IV 76% 71% 25 2
Secondary Strategic
Investments Secondaries 34% 23% 4 1
During the quarter we have also signed, subject to completion, a further
two deals for ICG Europe Fund VI thereby maintaining an excellent
investment pace for one of our larger funds.
With 96% of our AUM in closed end funds, outflows occur with the
realisation of the underlying portfolio companies. The pace of
realisations remained healthy in the quarter as investors continue to
take advantage of the market liquidity to sell assets and lock in
performance.
The balance sheet investment portfolio decreased 5% in the period to
GBP1,623m at 30 June 2017 (31 March 2017: GBP1,712m) following the
realisation of older assets.
The balance sheet remains well funded with available cash and unutilised
bank lines of GBP892.2m at 30 June 2017 (31 March 2017: GBP970.8m) and
no material refinancing requirements in the next 12 months. Balance
sheet utilisation will increase with the payment of the final ordinary
dividend on 4 August 2017, and funding commitments to our third party
funds as they deploy capital.
Enquiries
Analyst / Investor enquiries:
Philip Keller, CFOO, ICG +44 (0) 20 3201 7700
Ian Stanlake, Investor Relations, ICG +44 (0) 20 3201 7880
Media enquiries:
Neil Bennett, Tom Eckersley, Maitland +44 (0) 20 7379 5151 Susan Tether, Corporate Communications, ICG +44 (0) 20 3201 7917
This trading statement has been prepared solely to provide additional
information to shareholders and meets the relevant requirements of the
UK Listing Authority's Disclosure and Transparency Rules. The trading
statement should not be relied on by any other party or for any other
purpose.
This trading statement may contain forward looking statements. These
statements have been made by the Directors in good faith based on the
information available to them up to the time of their approval of this
report and should be treated with caution due to the inherent
uncertainties, including both economic and business risk factors,
underlying such forward looking information.
These written materials are not an offer of securities for sale in the
United States. Securities may not be offered or sold in the United
States absent registration under the US Securities Act of 1933, as
amended, or an exemption therefrom. The issuer has not and does not
intend to register any securities under the US Securities Act of 1933,
as amended, and does not intend to offer any securities to the public in
the United States. No money, securities or other consideration from any
person inside the United States is being solicited and, if sent in
response to the information contained in these written materials, will
not be accepted.
This Trading Statement contains information which, prior to this
announcement was insider information.
About ICG
ICG is a specialist asset manager with over 28 years' history. We manage
EUR23.3bn of assets in third party funds and proprietary capital,
principally in closed end funds. Our strategy is to grow our specialist
asset management activities to deliver increased shareholder value. Our
goal is to generate income and consistently high returns whilst
protecting against investment downside for our fund investors. We seek
to achieve this through our expertise in investing across the capital
structure. We combine flexible capital solutions, local access and
insight with an entrepreneurial approach to give us a competitive edge
in our markets. We operate across four asset classes - corporate,
capital market, real asset and secondary investments. In addition to
growing existing strategies, we are committed to innovation and
pioneering new strategies across these asset classes where the market
opportunity exists to deliver value to our fund investors and increase
shareholder value.
We are listed on the London Stock Exchange (ticker symbol: ICP) and
provide investment management and advisory services in support of our
strategy and goal through a number of regulated subsidiaries, further
details of which are available at: www.icgam.com.
This announcement is distributed by Nasdaq Corporate Solutions on behalf
of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the information
contained therein.
Source: Intermediate Capital Group plc via Globenewswire
http://www.icgplc.com/
(END) Dow Jones Newswires
July 25, 2017 02:00 ET (06:00 GMT)
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