ICG plans successor funds for FY 2018

The asset manager mentioned three specific strategies it is planning to raise funds for during the next financial year in its recent earnings statement.

Intermediate Capital Group is planning on introducing a spate of successor funds next financial year, hoping to hit a fundraising target of €4 billion. The firm outlined its plans in its latest earnings materials. 

According to the earnings report, the firm has begun raising for its third Senior Debt Partners fund. The fund’s predecessor, Senior Debt Partners II, was launched in 2014. According to PDI data the fund raised €3 billion, beating its target of €1 billion. ICG says it anticipates the next iteration of this strategy will surpass its predecessor in terms of assets raised.

The firm is also planning to introduce the next iterations of two regionally-focused funds. It notes it expects to raise successor funds for both its US private debt offering and UK real estate strategy.

The latter would be the firm’s fifth UK-focused real-estate fund. According to PDI data, it raised £1 billion (€1.2 billion, $1.3 billion) for its predecessor, the ICG-Longbow UK Real Estate Investment Fund IV.

During the previous financial year, ICG’s assets under management grew to £3 billion – an increase of £275 million year-on-year. The firm also says it made more than £500 million in new investments during the previous financial year.

An analyst’s note from Jefferies, obtained by PDI, notes ICG could raise as much as €6 billion during the next financial year. On top of the expected €3 billion from the Senior Debt Partners III fund, the notes anticipates €1 billion being raised in the firm’s CLO business.