Intermediate Capital AuM rise 14% in first half

Asset manager Intermediate Capital reported a 14% jump in assets for the first half on Tuesday as it raised €5.7bn of new money.

In the six months to 30 September, assets under management rose to €27.2bn, with €5.7bn of new money raised, driven by the company’s Senior Debt Partners strategy raising €4.2bn in the six month period. Intermediate said the fundraising pipeline is strong, with a number of its larger strategies expected to begin raising successor funds in the next 12 months.

However, group pre-tax profit for the period was down 24% to £95.5m as Investment Company profits declined to £51.2m from £92.2m due to lower investment income, while adjusted pre-tax profit dropped 39% to £81m.

Numis said this was in line with its £80m forecast, although adjusted earnings per share of 28.3p were 14% ahead of its 24.8p estimate, reflecting a tax rate of 1% versus the previous guidance of 13%.

Meanwhile, Intermediate lifted its interim dividend by 20% to 9p per share.

Chief executive officer Benoit Durteste said: “I am delighted to report another strong set of results for the first half, as well as a record fundraising performance. With AuM at €27.2bn, a healthy fundraising pipeline and strong fund investment for our larger strategies we continue to deliver on our strategic objectives and grow our specialist asset manager franchise.

“ICG's diversified investor base underpins our ability to scale proven, successful strategies, such as Senior Debt Partners. This fundraising success, now our largest single strategy, makes us one of the few asset managers with the scale, reputation, origination network and track record to take full advantage of the attractive European direct lending market. This serves as a blueprint for growing our existing strategies whilst at the same time continuing to innovate and pioneer new strategies, backed by our balance sheet capital and disciplined investment culture.”

Numis said: “We would anticipate making small profit before tax upgrades (0-5%) to nearer term forecasts, rising to larger PBT upgrades (5-10%) to outer year forecasts, to reflect: the higher than expected SDP fund raising (limited short term impact, growing long term impact), strong short term fund raising pipeline running ahead of existing forecasts (mainly longer term benefit) and continued cost discipline.”

At 1150 GMT, the shares were up 8.8% to 1,011p.