Intermediate Capital earnings rise as board scales strategy

The FTSE 250 company said that was driven by its senior debt partners strategy raising €4.2bn, as well as growing momentum across its European capital markets strategies.

Third party fee-earning assets under management were up 12% in the year to €21.0bn.

ICG said it saw “strong” deployment across strategies, up 21% to €4.9bn, while is portfolios continued to perform well with all funds on course to meet or exceed applicable hurdle rates.

It also reported an “excellent” start to the new financial year, with Europe Fund VII fundraising said to be well-advanced, with €2.6bn raised to date.

With a target size of €4bn, the board said it was scaling that strategy to reflect the level of investment opportunities.

On the financial front, ICG said fund management company profits were up 29% for the year to £95.3m, with third party fee income¹ up 21%.

Investment company profits were lower at £103.8m, compared to £178.4m a year earlier, which the board said was due to lower investment income.

Group profit before tax stood at £199.1m, down from £252.4m, while adjusted group profit before tax was £168.3m, down from £236.2m.

Earnings per share stood at 88.8p, rising from 74.5p year-on-year, which was said to be due to deferred tax accounting credits.

Fund management company earnings per share rose to 44.9p from 21.6p, while investment company earnings fell to 43.9p from 52.9p.

The board declared a final ordinary dividend up 8% at 21p per share, taking total ordinary dividends in the year up 11% to 30p per share.

“This is another year of impressive performance and successful delivery of our strategy,” said CEO Benoit Durteste.

“With AUM at a record €28.7bn, up 20%, and both fundraising and capital deployment at record levels, we continue to deliver on our commitments to investors and shareholders.

“This momentum has continued into the new financial year.”

Durteste said the market environment continued to be supportive of both ICG’s existing and new strategies, with the board seeing strong, ongoing demand from investors, as well as attractive investment opportunities for its funds.

“Our demonstrated ability to innovate and add new strategies to our portfolio has increased our diversification and resilience, and has further contributed to our credibility and attractiveness with investors.

“We have become a global platform and are well placed to build on this success.”

Chairman Kevin Parry added that the results were further evidence of the company’s status as a leading specialist asset manager.

“Fundraising continues to be excellent as investors have trusted us with their funds due to our sustained investment outperformance,” Parry explained.

“The strength of our fund management business allows the Board to recommend an 11% increase in the full year dividend.”