Acquisition

RNS Number : 1813Y

Intermediate Capital Group PLC

17 December 2010

 



Intermediate capital group announces the acquisition of a Majority Stake in LONGBOW REal Estate capital

Intermediate Capital Group (ICG), the FTSE 250 listed investment firm and asset manager with €12bn under management, is finalising the acquisition of a 51% stake in Longbow Real Estate Capital (Longbow), the UK real estate debt specialist, subject to regulatory approvals. 

Longbow is a specialist fund manager providing mezzanine finance and debt to the UK commercial property market. Longbow's founders have worked together since 1998 and have established a successful track record in originating and managing real estate senior debt and mezzanine. Longbow currently has circa £150m of third party institutional equity capital under management and gross assets of £0.6m.

Over the past twenty years ICG has built a leading global mezzanine platform as well as a strong European leveraged loans and high yield bond business. This success was achieved by combining local, dedicated teams of investment specialists, with a common investment discipline and operating platform. ICG will continue to grow its product offering through measured expansion into adjacent asset classes where its core skills, global reach and infrastructure can create value for its institutional clients and shareholders.

As a result of the credit crisis, the provision of debt from banks to the UK real estate sector has materially reduced, presenting an opportunity for fund managers with access to capital to provide mezzanine finance for both existing and new transactions. With the support of ICG, Longbow has a dedicated fund to address this market.

Commenting on the transaction, Christophe Evain, CEO of Intermediate Capital Group, said "Partnering with Longbow will enable ICG, its institutional clients and its shareholders to benefit from Longbow's deep knowledge, origination and execution expertise to capitalise on the significant under-supply of real estate mezzanine finance in the UK. The combination of ICG's international platform and Longbow's expertise in real estate debt, positions us to expand successfully into this asset class. We share a common credit philosophy and we believe they are the ideal partners for ICG in UK real estate."  

Kevin Cooper, Managing Director and co-founding Partner of Longbow, added "We are delighted to be working closely with ICG. Longbow's borrowers can look forward to increased access to capital and our limited partners will benefit from ICG's experience, rigorous investment culture and its institutional fund management infrastructure."

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Enquiries

ICG:

Analyst / Investor enquiries
Christophe Evain, CEO                                       [phone]
Philip Keller, CFO,                                             [phone]
Jean-Christophe Rey, Investor Relations               [phone]

Media enquiries
Mark Lunn, Corporate Communications               [phone]
Charlotte Kirkham, M: Communications               [phone]

Longbow:

            Kevin Cooper, Managing Director             [phone]  

About ICG

Intermediate Capital Group specialises in structuring and providing mezzanine finance, leveraged credit and minority equity, with approximately €12 billion under management in proprietary capital and third party funds. A FTSE 250 investment firm and fund manager listed on the London Stock Exchange, ICG is one of the largest independent mezzanine providers in the world with investment portfolios in Europe, Asia Pacific and the US.  Founded in 1989, ICG also has one of the longest track records of any institutional investor in European senior loans and high yield bonds. ICG's experienced global investment team operate locally from its head office in London and offices in Paris, Madrid, Stockholm, Frankfurt, Amsterdam, Hong Kong, Sydney and New York.

Further information is available at: www.icgplc.com.

About Longbow

Longbow Real Estate Capital is a commercial property debt specialist, managing £150 million of third party institutional equity for real estate mezzanine and senior debt investments in the UK.  Longbow applies a property-up approach to investing, with a hold-to-maturity philosophy, and aligns its interests with investors through co-investment in its Funds.  Longbow's fully resourced real estate debt platform provides in-house origination, property underwriting, risk management and asset management. Longbow's partners each have more than 20 years of experience in property, capital markets, banking and finance and the founding partners have worked together since 1998.  Throughout this time, Longbow's management team has accumulated extensive relationships and market intelligence within the UK commercial real estate borrower, banking and advisor communities. M3 is advising Longbow.

Further information is available at: www.longbowrec.com

 

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