Intermediate Capital Intermediate Capital Group Plc : 1st Quarter Results Trading Statement Or The Period To 30 June 2018
26 July 2018 - 4:00PM
UK Regulatory
TIDMICP
Highlights
-- Inflows in the first quarter were EUR4.8bn. 2018/19 fundraising is
weighted to the first quarter of the financial year; EUR3.7bn has been
raised for Europe Fund VII
-- Total AUM 15% higher at EUR32.9bn and third party fee earning AUM 20%
higher at EUR25.2bn
-- Fund deployment remains strong across strategies
-- All funds on course to meet or exceed their return hurdle rates
Benoit Durteste, CEO, said:
"As anticipated, the new financial year has started strongly with AUM
breaking EUR30bn driven by fundraising for Europe Fund VII which is
currently 48% larger than its predecessor fund. The size of the fund
demonstrates our ability to scale our proven strategies.
"Our increasing size and market presence is allowing us to source
attractive investment opportunities for our funds, without compromising
on our investment discipline. Our focus remains on deploying capital and
raising new funds, while selectively using our balance sheet to add to
our range of scalable strategies."
Business review
Total AUM increased 15% over the three months to 30 June 2018 to
EUR32.9bn, including our EUR2.3bn balance sheet investment portfolio.
Europe Fund VII has a higher fee rate than its predecessor fund and,
with fees charged on committed capital, is resulting in an immediate
increase in our profits. We have a healthy fundraising pipeline but as
expected, current year fundraising has been weighted to the first
quarter of the financial year.
Third party AUM by strategic asset class at 30 June 2018 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
2018 13,873 7,683 3,509 1,469 26,534
Additions 3,977 479 374 - 4,830
Realisations (630) (63) (338) - (1,031)
FX and other 108 188 (37) 50 309
At 30 June
2018 17,328 8,287 3,508 1,519 30,642
Fee earning
AUM - at 30
June 2018 12,829 8,268 2,769 1,331 25,197
In addition to Europe Fund VII, we completed fundraising for our North
American Private Debt Fund with an additional EUR280m taking it to its
maximum size of US$1.35bn, including $150m from the balance sheet. We
also closed one European CLO and saw further inflows for ICG Longbow
Fund V.
We have continued to source attractive investments and deployed capital
in the quarter while maintaining our disciplined investment culture in a
competitive investment market. The total amount of capital deployed on
behalf of our direct investment funds was GBP887m in the quarter (three
months to 30 June 2017: GBP454m). The direct investment funds are
investing as follows, based on third party funds raised at 30 June 2018:
Strategic % invested at % invested at Assets in fund at Deals completed
asset class Fund 30 June 2018 31 March 2018 30 June 2018 in Q1
Corporate ICG Europe
Investments Fund VI 86% 81% 15 1
North
American
Corporate Private
Investments Debt Fund 87% 85% 19 1
Senior Debt
Corporate Partners
Investments III(1) 25% 16% 6 2
Corporate Asia Pacific
Investments Fund III 89% 77% 7 1
ICG Longbow
Real Asset Real Estate
Investments Fund V 7% n/a 2 2
Strategic
Secondary Secondaries
Investments II 69% 54% 9 2
(1) Co-mingled fund, excluding mandates
During the quarter we have also signed, subject to completion, a further
four deals which will take ICG Europe Fund VI to 100% invested, and ICG
Europe Fund VII to 28% invested, thereby providing an excellent start to
the investment period for one of our largest funds.
With 94% of our AUM in closed end funds, outflows occur with the
realisation of the underlying portfolio companies. The pace of
realisations remained healthy as investors continue to take advantage of
market liquidity to sell assets and lock in performance.
The balance sheet investment portfolio of GBP2,028m at 30 June 2018
increased 7% in the quarter (31 March 2018: GBP1,898m) with new
investments offset by the realisation of older assets.
The balance sheet remains well funded with available cash and unutilised
bank lines of GBP519.1m at 30 June 2018 (31 March 2018: GBP729.7m) and
no material refinancing requirements in the next 12 months. Balance
sheet utilisation will increase with the payment of the final ordinary
dividend on 7 August 2018, funding commitments to third party funds as
they deploy capital, and support in developing our new infrastructure
and real estate strategies.
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:
Alicia Wyllie, Corporate Communications, ICG
+44 (0) 20 3201 7994
Neil Bennett, Sam Turvey, Maitland +44 (0) 20 7379 5151
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 inside information.
About ICG
ICG is a specialist asset manager with over 29 years' history. We manage
EUR32.9bn 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 26, 2018 02:00 ET (06:00 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
Intermediate Capital (LSE:ICP)
Historical Stock Chart
From Apr 2024 to May 2024
Intermediate Capital (LSE:ICP)
Historical Stock Chart
From May 2023 to May 2024