Intermediate Capital Icg: Q1 Trading Statement For The Period To 30 June 2020
21 July 2020 - 4:00PM
UK Regulatory
TIDMICP
21 July 2020
Q1 Trading Statement for the period to 30 June 2020
Highlights
-- Continued AUM growth: total AUM up 1% on 31 March 2020 to EUR45.6bn, with
third party fee earning AUM 1.4% higher at EUR36.4bn over the same
period
-- Existing portfolios performing well: positive indications of a recovery
in valuations, with resumption in realisation activity at pre-Covid-19
valuations
-- Investment activity rebounding as Covid-19 restrictions ease: EUR2.4bn of
deals in exclusivity, good indicator of investment pace and future
fundraising pipeline
-- Fundraising momentum continues, in line with expectations: EUR1.2bn of
new money raised in the first quarter, with good visibility for the
coming months
-- Robust financial position: well-capitalised balance sheet, with GBP1.1bn
of available liquidity
Benoit Durteste, CEO, said:
"I want to thank all our employees and those of our portfolio companies
for their dedication and commitment during these challenging times.
People are fundamental to ICG's success and their health is of upmost
importance.
"The start of the financial year has been encouraging. Our portfolios
are showing signs of improved performance, noticeably better than
expected at year-end, indicating a recovery of valuations from their end
of March lows. We have also seen an early rebound in investment activity
as lockdown measures have eased and business activity resumes. This
bodes well for next year's fundraising prospects.
"We are approaching this market from a position of strength. Our
diversified strategies and global capabilities are more relevant than
ever in today's markets. Our business is in a resilient position, with
long-term fee streams, diversified portfolios and well-capitalised
balance sheet. We are therefore well-placed for significant long-term
growth and value creation."
Business review
Total AUM increased 1% over the three months to 30 June 2020 to
EUR45.6bn, including our EUR2.3bn balance sheet investment portfolio. We
have made an encouraging start to the fundraising year, with EUR1.2bn of
new money raised despite the longer onboarding process in place since
the start of the pandemic. We saw further inflows for our Senior Debt
Partners strategy, net inflows across our Capital Market strategies, and
raised EUR0.2bn for our Asia Pacific strategy. In addition, we priced a
EUR0.4bn European CLO in March which closed in the current quarter.
We have good visibility on fundraising for the coming months, and
overall our expectations remain that fundraising will be slower in the
current financial year given disruption caused by Covid-19 and the
natural fundraising cycle for our larger funds. Once Senior Debt
Partners is fully raised we will not have any larger funds in the market
during the current financial year. We continue to make good progress
with our new Sale and Leaseback and Infrastructure Equity strategies,
raising EUR0.5bn and EUR0.3bn of third party money respectively to date.
Third party AUM by strategic asset class at 30 June 2020 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
2020 20,689 13,831 4,944 3,365 42,829
------------- --------------------- -------------------------- ---------------------- --------------------- ----------------
Additions 665 501 70 - 1,236
------------- --------------------- -------------------------- ---------------------- --------------------- ----------------
Realisations (378) (50) (106) (25) (559)
------------- --------------------- -------------------------- ---------------------- --------------------- ----------------
FX and other (40) 1 (83) (99) (221)
------------- --------------------- -------------------------- ---------------------- --------------------- ----------------
At 30 June
2020 20,936 14,283 4,825 3,241 43,285
------------- --------------------- -------------------------- ---------------------- --------------------- ----------------
Fee earning
AUM - at 30
June 2020 15,780 13,711 3,709 3,163 36,363
------------- --------------------- -------------------------- ---------------------- --------------------- ----------------
Our strong origination capability means we can continue to source
attractive investments for our funds, while maintaining our rigorous and
disciplined investment approach. The total amount of capital deployed on
behalf of our direct investment funds was EUR411m in the quarter (three
months to 30 June 2019: EUR1,049m), with a further EUR2.4bn of deals in
exclusivity. This compares to EUR5.9bn deployed across the whole of the
last financial year.
The direct investment funds are investing as follows, based on
third-party funds raised at 30 June 2020:
Strategic % invested at % invested at Assets in fund at Deals completed
asset class Fund 30 June 2020 31 March 2020 30 June 2020 in Q1
------------ ----------- ------------- -------------- ----------------- ---------------
Corporate ICG Europe
Investments Fund VII 53% 52% 8 0
Europe
Corporate Mid-Market
Investments Fund 7% 7% 1 0
North
American
Private
Corporate Debt Fund
Investments II 31% 26% 8 1
Senior Debt
Corporate Partners
Investments IV(1) 17% 16% 4 0
Asia
Corporate Pacific
Investments Fund III 93% 93% 8 0
ICG Longbow
Real
Real Asset Estate
Investments Fund V 63% 61% 15 1
Strategic
Secondary Equity
Investments III 32% 30% 3 0
------------ ----------- ------------- -------------- ----------------- ---------------
(1) Co-mingled fund, excluding mandates and undrawn commitments
85% of our AUM is in closed-end funds where outflows only occur with the
realisation of the underlying portfolio companies. Realisation activity
slowed materially in the quarter, and we currently expect it to remain
subdued for the remainder of the current financial year. That said, we
will capitalise on attractive opportunities to realise assets that
underpin the performance of our funds and return capital to the balance
sheet.
The balance sheet investment portfolio was GBP2.1bn at 30 June 2020 (31
March 2020: GBP2.2bn). As the balance sheet invests solely to support
our fund management activities, its portfolio will fluctuate in size
depending on the deal activity, and performance, of the funds in which
it invests.
The balance sheet remains well funded with unutilised cash and debt
facilities of GBP1,055.8m at 30 June 2020 (31 March 2020: GBP1,216.5m)
and no material refinancing requirements in the next 12 months.
Enquiries
Analyst / Investor enquiries:
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.
About ICG
ICG is a global alternative asset manager with over 30 years' history.
We manage EUR45.6bn of assets in private debt, credit and equity,
principally in closed-end funds. We provide capital to help companies
grow through private and public markets, developing long-term
relationships with our business partners to deliver value for
shareholders, clients and employees.
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.
ICG is listed on the London Stock Exchange (ticker symbol: ICP). Further
details are available at: www.icgam.com. You can follow ICG on LinkedIn
https://www.globenewswire.com/Tracker?data=ja_Kfnj1YnxWshEAmPIfSdwbhDWMJVtuXBK1_UdMKLdUuVAkhFR7zCDw6p7B2MeyYnuIcpkhvdiL6mfvxDFRSG6hVdge0okUfajZbqVyJTQVFyNflDPQ1VN9DlAltiso
https://www.linkedin.com/company/52126.
(END) Dow Jones Newswires
July 21, 2020 02:00 ET (06:00 GMT)
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