ICG grows AUM 20% with senior debt success

The credit specialist will increase dividends after a strong fundraising year.

Intermediate Capital Group (ICG) increased its assets under management by 20 percent in the last financial year, according to its latest results statement.

The credit investment specialist saw its AUM increase to €28.7 billion ($33.9 billion) in the financial year ending 31 March 2018, with €7.8 billion of new money raised. It said its Senior Debt Partners strategy was a key driver, raising €4.2 billion.

Commenting on the strategy, ICG’s statement said: “The increase in size of our Senior Debt Partners strategy, with assets under management up 68 percent since 31 March 2017, acts as a differentiator in the European direct lending market as it allows us to offer a broader range of finance solutions to mid-market companies.

“We upscaled this strategy to permit it to make investments in North American mid-market companies, thereby leveraging our European success with our existing US presence to broaden our direct lending strategy.”

It also revealed it had raised €2.6 billion to date of its €4 billion target for Europe Fund VII.

ICG reported that it also saw a significant increase in deployment across its strategies, with total capital deployed up 21 percent to €4.9 billion.

The fund management company saw its profits increase 29 percent to £95.3 million ($128.2 million; €108.6 million), up from £74 million in 2017. The investment company saw lower profits of £103.8 million, down from £178.4 million in 2017, due to lower investment income. ICG added that its portfolios are performing well and all funds are on course to meet or exceed acceptable hurdle rates.

The final ordinary dividend was increased by 8 percent to 21 pence per share, while total ordinary dividends in the year are up 11 percent to 30 pence per share.