Intermediate Capital Intermediate Capital Group Plc : 1st Quarter Results Trading Statement Or The Period To 30 June 2018

 
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                                                                                                [phone] 
 
 
   Ian Stanlake, Investor Relations, ICG                                                                              [phone] 
 
 
 
 
   Media enquiries: 
 
   Alicia Wyllie, Corporate Communications, ICG 
[phone] 
 
   Neil Bennett, Sam Turvey, Maitland                                                                                [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 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)

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