Intermediate Capital 1st Quarter Results

 
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                                                                                                [phone] 
 
 
   Ian Stanlake, Investor Relations, ICG                                                                              [phone] 
 
 
 
 
   Media enquiries: 
 
   Neil Bennett, Tom Eckersley, Maitland                                                                            [phone] Susan Tether, Corporate Communications, ICG                                                                         [phone] 
 
 
   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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