Intermediate Capital posts 5% jump in Q3 AuM

Intermediate Capital Group posted a 5% rise in assets under management for the third quarter on Tuesday amid steady demand.

In the quarter to 31 December 2018, total assets under management increased to €35.2bn, with third-party fee earning AuM up 7% to €27.9bn.

Inflows in the third quarter were €1.9bn, with €1bn raised across the group’s capital markets funds and €0.5bn raised for Strategic Equity III.

ICG said all funds were on course to meet or exceed their return hurdle rates and that recent capital markets volatility has not impacted valuations, with the fund performance remaining strong.

Chief executive officer Benoit Durteste said: "Strong investment performance, underpinned by steady demand for alternative asset classes, continues to drive positive inflows, despite the challenging macro-economic environment.

"It is pleasing to see this demand benefiting a broad range of our fund strategies - most notably in the third quarter for Strategic Equity III and our open-ended capital market funds. Our local teams continue to find attractive investment opportunities and where appropriate, they are capitalising on market liquidity to realise existing assets, lock in performance and return capital to investors.

"We continue to have confidence in our ability to grow despite geopolitical uncertainties, building our capabilities in newer asset classes to complement our more mature businesses and enhance our longer term growth prospects. We remain alert to the opportunities that any market dislocation may present to us."

Shore Capital analyst Gary Greenwood said: "We believe that ICG has been operating in almost perfect market conditions, reflecting strong demand for alternative high yield assets in a low interest rate environment.

"However, we also think a combination of the end of quantitative easing and broader market weakness, has driven the shares down from their recent highs (having been above 1,200p in May last year) to a more reasonable level. With a sum-of-the-parts of 1,000p (3% upside) we retain a neutral stance."

At 0945 GMT, the shares were up 5.7% to 1,027p.