Intermediate Capital Share Discussion Threads

[its the oxman] 19/11/2024 21:02

Thx riverman, agree with you. Continuing growth in aum and the fund management business is the most important thing. The headline eps may be unhelpful this year but market seems to be taking it its stride so far.

[riverman77] 19/11/2024 18:15

Net Investment Returns are the returns from the balance sheet investments and will be lumpy (eg due to lower realisations). They will have been marked down for this year as it's obviously a quiet year. Really don't see this as a big deal, the underlying fund management earnings are what count and these are growing strongly.

[its the oxman] 19/11/2024 17:50

Eps forecasts seem to have taken a nosedive on stockopedia down from 170p ish to 147.5p. Attribute this to fall in nir but co seemed to say this was just technical. Almost suggesting it should be ignored. Any broker updates, experts or other views out there? Not entirely sure what to make of it.

[its the oxman] 13/11/2024 17:29

Extract from results,Net Investment ReturnsFor the five years to 30 September 2024, Net Investment Returns (NIR) have been in line with our medium-term guidance, averaging 11.4%. For the six months to 30 September 2024, NIR were £47.8m (H1 FY24: £159.4m), equating to an annualised rate of 3% (H1 FY24: 11%).

[contact2fsnetcouk] 13/11/2024 17:20

Ox,

What is "NIR" thank you

[its the oxman] 13/11/2024 16:58

Quite a few NIR questions in management presentation, they say it's just a technical issue but could persist into next 6months. Being ultra conservative with no increase in any defaults. Also likely to reverse at some point. Excuse for some profit taking I guess but management remained very bullish on raising more aum , US remains big untapped market, so the business is only getting bigger / more profitable. Anyone got any broker revisions.

[its the oxman] 13/11/2024 16:44

Intermediate Capital Group total assets under management rose to $106bn at the end of its first half, it reported on Wednesday, as fee-earning assets under management were up 4% from 31 March The FTSE 100 company said it achieved $10bn in fundraising, marking its second-highest six-month fundraising performance, including significant client capital raises for SDP V and NACP III, both approximately 50% larger than previous vintages.Management fees increased 23% year-on-year to £287m, while performance fees grew 9% to £32m.The fund management company's profit before tax rose 21% to £196m, resulting in a 55.3% profit margin, reflecting ICG's focus on operational efficiency.Group operating expenses remained stable compared to the prior half-year, up 8% year-on-year to £197m.Investment momentum continued to build, with private debt returning to net deployment in the second quarter.Group profit before tax was £198m, down from £242m in the first half of the 2024 financial year, and earnings per share decreased to 57.6p from 71.5p.Despite the profit drop, ICG maintained its interim dividend, increasing slightly to 26.3p per share in line with policy."During the last six months we have reinforced our leading positions in flagship strategies and have significantly progressed a number of scaling strategies," said chief executive and investment officer, Benoît Durteste."We are reporting near-record levels of fundraising, increasing transaction activity, higher client numbers, and growth across almost all key financial metrics."Senior Debt Partners completed the largest ever direct lending fundraise in Europe at $17bn1, reinforcing ICG's position of strength and incumbency to capitalise on that market."Durteste said the company's structured capital, secondaries and real assets strategies - which accounted for around 55% of its fee-earning assets under management - were originating attractive opportunities and experienced higher levels of investment activity than recent periods."We have just hosted our annual LP gatherings in Europe, the US and Asia."ICG's differentiated client offering resonates strongly, founded upon our distinctive waterfront of products with top quartile performance and DPI in a number of strategies, supported by our continued platform investments."Benoît Durteste said that while uncertainty persisted in a number of areas, the firm was seeing that managers such as ICG could generate attractive returns and raise significant amounts of client capital."This is accelerating the development of a relatively small group of globally relevant, scaled private market managers, and gives us confidence as we look to our next $100bn and beyond."At 1012 GMT, shares in Intermediate Capital Group were down 5% at 2,128p.

[tag57] 13/11/2024 08:35

I thought the results looked relatively strong given the markets, although the poor PBT/EPS comparison stood out as disappointing. Market reaction first thing looked overdone though.

[its the oxman] 13/11/2024 08:29

Yes probably is an opportunity. Bet interesting to listen to presentation and see where forecasts go though.

[riverman77] 13/11/2024 08:21

Underlying profits in the fund management business strong - this is what counts. The profits from their balance sheet investments are always lumpy. We know realisations are currently subdued across the private equity industry, so not really a concern for me. I'm actually hoping it falls a bit more so I can top up.

[its the oxman] 13/11/2024 08:17

NIR lower. Hopefully temporary.

[pvb] 13/11/2024 08:10

Intermediate Capital Group plc: Interim Results for the six months ended 30 September 2024
13/11/2024



Highlights

• AUM of $106bn, including fee-earning AUM of $73bn (up 4% compared to 31 March 2024) and $19bn AUM not yet earning fees

• Fundraising of $10bn, ICG's second-highest ever six month fundraise. Included final closes of SDP V and NACP III, both with ~50% more client capital than prior vintage. First close of Europe IX expected in FY25

• Investment activity continues to build; Private Debt reverted to net deployment in Q2

• Management fees of £287m, up 23% year-on-year (+10% LTM compared to FY24)

• Performance fees of £32m, up 9% year-on-year

• Fund Management Company profit before tax of £196m, up 21% year-on-year (+9% LTM compared to FY24). FMC PBT margin of 55.3%

• Group operating expenses of £197m, flat compared to H2 FY24 and up 8% year-on-year

• Balance sheet generated NIR of £48m (3% return, five year average return of 11%); NAV per share1 of 788p

• Group PBT of £198m (H1 FY24: £242m) and Group EPS of 57.6p (H1 FY24: 71.5p)

• Interim dividend of 26.3p per share, in line with policy (H1 FY24: 25.8p per share)

"While uncertainty persists in many areas, we are seeing that top-tier managers such as ICG can generate attractive returns and raise significant amounts of client capital. This is accelerating the development of a relatively small group of globally relevant, scaled private market managers, and gives us confidence as we look to our next $100bn and beyond."


Might be an idea to keep an eye on the evolution of the Management fees/Group PBT ratio?

[its the oxman] 13/11/2024 08:06

Costs up !

[scottishfield] 11/11/2024 13:57

Hope so Oxman, going well today at last.

[its the oxman] 11/11/2024 13:56

Half year results this week. Hoping they read well.

[pvb] 05/11/2024 16:55

RESEARCH & MARKET ANALYSIS

The Easing Cycle Begins
12 October 2024



Key Points

The monetary easing cycle has begun as major central banks start lowering rates

Europe and UK economies supported by rising real incomes as energy shock fades

US economy appears on-track for a soft landing as growth slows, but not by too much

A constructive investing environment, but geopolitical and idiosyncratic risks are high

In this environment we maintain a bias for less cyclical exposures, companies with predictable and resilient cashflows, and strategies that provide downside protection and can take advantage of market disruption
-------

13 Nov 2024
Half year results announcement

[its the oxman] 02/10/2024 14:47

Added c.2140p

[pvb] 30/9/2024 16:15

...You beat me to it! Was waiting until closing prices.

Hold on tight! :-)

[tag57] 30/9/2024 16:12

4.46% down on the day!

[pvb] 12/9/2024 18:10

4.46% up on the day!

[its the oxman] 11/9/2024 13:45

ICG up today.Intermediate Capital : ICG announces final close for Senior Debt Partners fund 5 at $17bn, significantly above targetSeptember 11, 2024 at 06:38 am EDT ShareLargest ever direct lending fundraise in EuropeICG, the global alternative asset manager, has held the final close for the fifth vintage of its flagship direct lending strategy, Senior Debt Partners ("SDP"). The fund and associated vehicles* raised a total of $17bn (approximately €15.2bn), significantly exceeding the initial target of $11-12bn. To date, the fund has invested circa 45% of the capital raised.SDP was launched in 2012 to provide first lien, senior secured loans to a wide and diversified pool of mid and upper mid-market European-based businesses, typically owned by leading private equity firms. Today the strategy is a market leader in the asset class, investing and managing capital on behalf of over 180 clients.Benoît DurtesteBenoît Durteste, CIO and CEO of ICG, commented:This fundraise underlines ICG's leading position in European direct lending. We are proud to be amongst the beneficiaries of a market environment in which clients are increasingly looking to partner with a smaller number of managers, and this significant upsize of one of our flagship funds is a notable achievement as we execute our strategy of scaling up and scaling out.Peter LockheadMathieu Vigier Peter Lockhead and Mathieu Vigier, Co-Heads of SDP, commented:The direct lending market in Europe remains attractive from an investment perspective through economic cycles, and we have a significant pipeline of opportunities. Today's announcement underlines the appeal of SDP's clear investment strategy and our differentiated origination platform, and we are grateful to our clients for the support they have shown.

[mirandaj] 02/9/2024 07:26

Be aware how they plan their strategy constantly.

QUOTE

Tax Strategy FY2023 icgplc.com

 ICG is a global alternative asset manager creating sustainable value by partnering with ambitious businesses.  Our business involves raising capital from third party investors, investing that capital and maximising returns from investment for our investors.  We manage over $70bn of AUM and our responsibilities set out within our global tax strategy are critical to deliver the appropriate tax outcomes for the Group, our international third party investors, our investing structures and our people.  The Group’s tax team sit at the heart of the organisation and report directly to the Chief Financial and Operating Officer (“CFOO”).  The CFOO reports to the Audit Committee who oversee the tax strategy and risk management framework.   The Group considers tax risk in line with the four key areas: Investors, Investments, Group and our People (in respect of withholding compliance for employees).  In each area, we focus on the design of responsible and sustainable structures, and the timely and accurate reporting of relevant tax compliance information.  


The Group has a low appetite for tax risk and the sustainability of our structuring arrangements are fundamental to managing the ongoing risk appetite of the Group and the certainty of tax outcomes for our stakeholders therein.  The Tax Strategy published herein sets our approach to managing the tax affairs of ICG plc and its subsidiaries (together the “Group”), both in the UK and in each of the markets in which it operates.  The Group does not provide tax advice to our investors, investments or our people.  Our third party investment funds seek their own independent professional advice to meet their respective investing or business need. 


  The Tax Strategy for the Group covers:  -

 - - - - Our tax governance framework; 

 Our commitment to timely and accurate tax compliance, including tax payments;

  Our approach to tax planning;  ;

Our ongoing controls to limit tax risk, and manage any residual risk arising;

 and Our commitment to build positive relationships with tax authorities and related government bodies. 

 The publication of this Tax Strategy is in compliance with paragraph 16(2) of Schedule 19 to the Finance Act 2016 for the financial year ending 31 March 2023.   

[its the oxman] 12/8/2024 12:14

Intermediate Capital Group (LSE:ICP) has been upgraded by Deutsche Bank which said "risk off periods have tended to be the best time to buy" the alternative asset manager.Analysts at the bank moved their rating to 'buy' from 'hold', with a target price unchanged at 2550p compared to a last close price of 1922p."From a share price perspective, ICG has historically traded poorly when markets are in a risk-off phase," said analyst David McCann."Judging by the share price movement in recent weeks, this time feels no different, early on in this current risk-off market phase."In his view, times like these make shares in the FTSE 100-listed group more attractive on a time horizon of a year or more.Management fee related earnings are the key element of profits and have "substantial downside protection", the analyst added."Whilst there are other parts of group earnings / net worth more sensitive to the macro-economy, these are smaller, less valuable and we think there are substantive potential offsetting considerations."