ICG sees short-term fall in M&A post Brexit vote

Intermediate Capital Group said assets under management had jumped 1% to €21.9bn in the quarter to 30 June as as it raise €800bn in new third party money.

IGC said it was we are well placed to deal with the uncertainty caused by the UK's vote to leave the European Union, but warned in the short term, “there may be a reduced level of M&A activity in the UK, resulting in a slower investment pace in the UK and fewer realisations of UK assets”.

“There will be minimal impact on fees as the majority of the capital we manage is in closed end funds. Elsewhere, it is too early to assess the impact of the EU referendum, if any, on the performance of the underlying portfolio companies.”

“We have a long established presence in Europe operating through existing subsidiaries and remain dedicated to our operations throughout Europe. Currently, we do not anticipate the need for any significant organisational change, but will continue to monitor Brexit developments and react quickly to any possible impact on our business model.”

Chief executive Christophe Evain said long term market conditions remained favourable for alternative investments although “economic volatility and the current uncertainty in the Eurozone may have some short term impacts on our business”.

“Our fundraising focus turns to first time funds, which always take more time to gain traction, means that we expect the pace of fundraising to slow for the rest of the financial year”.