ICG fundraising target increased to €6bn

Debt specialist ICG has ambitious plans to raise capital as it unveils a bullish market outlook.

Intermediate Capital Group (ICG) has increased its annual fundraising target by 50 percent to €6 billion.

The debt specialist announced in a bullish third quarter trading statement that an increase in the number and size of its strategies would see it grow its fundraising target from €4 billion to €6 billion on a rolling three-year basis.

While inflows between 1 October and 31 December 2017 were low at just €0.6 billion, ICG said this was due to strong inflows in the first half of the financial year, with year-to-date inflows of €6.3 billion.

Last year was a record-breaking year for private debt fundraising with more than $180 billion raised globally according to PDI data.

ICG is also raising its fund management company operating margin from above 40 percent to above 43 percent as several of its newer strategies – which required significant expense in creating new teams – come to maturity.

Total assets under management grew 1% to €27.4 billion and third party fee-earning assets were up 7% to €19.9 billion.

The firm also deployed a significant amount of capital in the final three months of 2017 totalling £1.25 billion (€1.43 billion), up from £730 billion in the same period of 2016.