ICG closes E450m leveraged loan fund

Intermediate Capital Group (ICG) has closed a new E450m leveraged loan fund, Promus I, despite difficult market conditions and a downturn in results.

ICG have managed to close a E450m leveraged loan fund – the first of its kind – in difficult market conditions reports efinancialnews.com. The fund was raised by JP Morgan. The firm also reported its half-year results which saw profits slip to £25.1m – a drop of 37 per cent.

The leveraged loan fund adds to ICG's asset management offering, which includes two CDOs and a new £290m mezzanine fund. efinancialnews.com also quotes Tom Attwood, managing director of ICG on the relative merits of the new fund versus a CDO, “A CDO requires you to invest over a relatively short period of time. That's a problem in Europe where there is a limited, not multiple choice. It is not consistent with good credit, which is about knowing when and being able to afford not to spend anything.'

The leveraged loan fund has an investment window of three years enabling ICG to take a longer term view.