ICG raises €3.7bn for seventh Europe fund

Significant inflows have helped the debt specialist grow assets under management to over €30bn for the first time.

ICG has raised €3.7 billion for its seventh Europe fund, ahead of its previous €3 billion vehicle and closing in on its €4 billion target.

In its latest earnings update, ICG revealed has Europe Fund VII now stands at €3.7 billion, making a significant contribution to the firm’s net inflows of €4.8 billion in first quarter of its 2018/19 financial year.

Fund VII has a higher fee rate than its predecessor fund, charging fees on committed capital, resulting in an immediate increase in ICG profits. The fundraising raised total AUM by 15 percent to €32.9 billion, while third party fee earning AUM was up 20 percent to €25.2 billion.

ICG’s CEO, Benoit Durteste, said: “As anticipated, the new financial year has started strongly with AUM breaking €30 billion driven by fundraising for Europe Fund VII which is currently 48 percent larger than its predecessor fund. The size of the fund demonstrates our ability to scale our proven strategies.”

In April, Private Debt Investor revealed the seventh fund was oversubscribed and was set to make a significant contribution to the firm’s plans to raise €6 billion on a three-year rolling average.

The firm also revealed it has completed fundraising for its North American Private Debt Fund, raising an extra €280 million in the quarter, taking the total size of the fund to $1.35 billion. The firm has also closed a European CLO and saw inflows to its ICG Longbow Fund V.

The North American fund is currently 87 percent invested with 19 investments in its portfolio while ICG Europe Fund VI is 86 percent invested with 15 investments. The firm has signed four further deals for its Europe Fund VI which will take the fund to 100 percent once completed and will take Europe Fund VII to 28 percent invested. A total of £887 million (€999 million) was deployed in the quarter, up from £454 million in the same period of 2017.