January Trading Statement - for the period to 3...

Highlights

• Total AUM up 3% to €22.6bn in the quarter, with €0.6bn of new third party money raised in the three months to 31 December 2016; third party fee earning AUM up 5% to €17.3bn
   
• Fundraising performance in line with expectations, driven by a final close on our Asia Pacific Fund III and a further close on our Strategic Secondaries Fund
   
• Investment portfolio reduced 4% in the quarter as the pace of realisations outstripped new investments made
   
• Investment portfolio performance remains robust and funds performing in line with expectations

Commenting, Christophe Evain, CEO, said:

"I am pleased to report ICG's third quarter trading is in line with expectations. Third party assets under management grew further in the third quarter, with €0.6bn raised, resulting in total AUM increasing to €22.6bn. Both fundraising and capital deployment remain on track and we have visibility of good fundraising momentum through the next 12 months. Current market conditions are sustaining a positive trend favouring alternative asset classes which we are well positioned to capitalise on."

Grow assets under management

Total assets under management have increased 3% over the three months to 31 December 2016 to €22.6bn with the level of fundraising consistent with that of the first half of the financial year but with a higher pace of realisations. The third party AUM by strategic asset class is as follows:

	Corporate Investments €m	Capital Markets €m	Real Assets €m	Secondaries €m	Total Third Party AUM €m
At 30 September 2016	10,113	5,317	3,340	1,078	19,848
Additions	403	50	-	147	600
Realisations	(316)	(36)	(109)	-	(461)
FX and other	263	157	70	43	533
At 31 December 2016	10,463	5,488	3,301	1,268	20,520
Fee earning AUM - at 31 December 2016	8,079	5,488	2,648	1,123	17,338

During the quarter we closed our third Asia Pacific fund at €615m ($691m), including a $200m commitment from the balance sheet, with €177m ($194m) of third party money raised during the quarter. We continue to make good progress in fundraising for our Strategic Secondaries strategy with a further €147m ($155m) raised since September, taking the total raised to €666m ($702m), including a $200m commitment from the balance sheet. Elsewhere, we raised €226m from segregated mandates into our Senior Debt Partners strategy and a further €50m of third party money spread across a range of strategies.

Invest selectively

Capital deployment in the quarter has remained on track in a competitive investment market.

The total amount of capital deployed on behalf of our direct investment funds was £730m in the quarter and £2,045m in the year to date (nine months to 31 December 2015: £1,898m). In addition, our Investment Company invested a total of £66.5m in the quarter and £244.7m in the year to date (nine months to 31 December 2015: £187.3m).

During the quarter we completed a number of investments for our Senior Debt Partners II strategy, which has deployed 52% of its capital, and our ICG Longbow Real Estate Fund IV which is 67% deployed. As both charge fees on invested capital this is contributing to the increase in our fee earning AUM. In addition, we also signed, subject to completion, one deal for ICG Europe Fund VI and one deal for ICG Asia Pacific Fund III, maintaining the investment pace of those funds.

Manage portfolios to maximise value

The performance of our Investment Company portfolio remains robust and our funds continue to perform in line with our expectations.

The current pace of realisations is in line with the first half of the financial year. In the quarter to 31 December 2016 our Investment Company received £128.3m of principal repayments, crystallised £38.2m of rolled up interest and realised £27.6m of cash capital gains. However, realisations are likely to increase for the remainder of the financial year as a number of our balance sheet assets, including some of the larger assets, are subject to exit plans.

The Investment Company portfolio is now more diversified than at any point in our history as we invest our capital across more strategies thereby reducing our exposure to individual assets. As a result the investment into, or realisation of, individual assets is less significant to our overall portfolio. We therefore no longer intend to make announcements relating to the investment or realisation of individual assets made in the ordinary course of business. 

Balance Sheet

The balance sheet remains well funded with available cash and unutilised bank lines of £899.8m at 31 December 2016 (30 September 2016: £802.1m) and no material refinancing requirements in the next 12 months.  

We continue to target a return on equity of over 13% by further growth in the profitability of the business and maintaining an efficient balance sheet with gearing between 0.8x and 1.2x.

Enquiries

Analyst / Investor enquiries:

Philip Keller, CFO, 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 27 years' history in private debt, credit and equity.  Our objective is to generate income and consistently high returns whilst protecting against investment downside.  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 are committed to innovation and pioneering new strategies where we can deliver value to our investors. ICG has €22.6bn of assets under management globally (as at 31 December 2016); we are listed on the London Stock Exchange (ticker symbol: ICP), and regulated in the UK by the Financial Conduct Authority (FCA). Intermediate Capital Group, Inc. is a wholly-owned subsidiary of ICG and is registered as an investment adviser under the U.S. Investment Advisers Act of 1940. Further information is 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