TIDMICP 
 

29 July 2021

Q1: Trading Statement for the three months ended 30 June 2021

Strong start to the year across fundraising and investment activity

 
Highlights 
 
 --    Third-party AUM: $61.5bn at 30 June 2021, an increase 
       of 10% ($5.4bn) during the period and 27% ($13.1bn) 
       in the twelve months from 30 June 2020 
 
 --    Fundraising: raised $8.2bn during the period, in line 
       with our expectations that FY22 will be a peak year 
       in our four-year fundraising cycle 
 
 --    Europe VIII: latest vintage of this flagship strategy 
       held a first close on 29 April 2021 and raised $3.1bn 
       during the period; the fund has a ten-year 
       contractual life and charges fees on committed 
       capital 
 
 --    Deployment: activity continues to be high, with 
       $4.5bn deployed on behalf of our direct investment 
       funds 
 
 --    New strategies: seeded investments for our North 
       America Private Equity, Life Sciences and LP 
       Secondaries strategies, and acquired Australian real 
       estate debt manager 
 
 --    Sustainability and people: continued progress against 
       our priorities, including launching an ESG-linked 
       fund-level facility for Real Estate Partnership 
       Capital VI and joining The Diversity Project 
 
 --    Balance sheet: liquidity of GBP652.2m at 30 June 2021 
 
 
Benoît Durteste 
 CEO and CIO 
 
       We have started the year with positive momentum. As 
       previously announced, we expect FY22 to be a peak 
       year in our four-year fundraising cycle and are pleased 
       with how strongly the year has begun, benefitting 
       from fundraising being front-loaded as expected. In 
       line with our long-term focus, we also continue to 
       invest in the future sustainable growth of ICG. 
       The level of investment activity across our business 
       remains elevated and our local teams are sourcing 
       attractive opportunities to invest and realise our 
       clients' capital. Our ability to invest globally across 
       the capital structure allows us to thrive in these 
       dynamic market conditions. The performance of our 
       funds continues to be strong, reinforcing our track 
       record and investment-led approach. 
       With responsible investing being an integral part 
       of our investment process, we have put in place an 
       ESG-linked fund-level financing facility for Real 
       Estate Partnership Capital VI and have adopted an 
       enhanced, thematic approach to our ESG engagement 
       strategy within Europe VIII. These are important milestones 
       in our ambitions around sustainability and people. 
       Looking ahead, we are fully focused on delivering 
       our ambitious growth strategy and developing further 
       as a leading global alternative asset manager. 
 

PERFORMANCE OVERVIEW

Three months ended 30 June 2021

 
                                                          30 June     31 March 
                                                           2021         2021      Change 
------------------------------------------------------  -----------  -----------  ------ 
Third-party AUM activity 
Third-party AUM at period end                              $61,545m     $56,152m     10% 
Third-party fee-earning AUM at period end                  $50,626m     $46,729m      8% 
Third-party AUM additions during period                     $8,786m 
Third-party AUM realisations during period                  $3,710m 
Third-party AUM deployed from direct investment funds 
 during period                                              $4,531m 
 
Balance sheet investment portfolio 
Balance sheet investment portfolio at period end        GBP2,775.7m  GBP2,556.3m      9% 
 

Last 12 months

Compared to LTM ending 30 June 2020

   -- Third-party AUM +27%, third-party fee-earning AUM +24% 
 
   -- $17.5bn third-party AUM additions ($9.3bn) 
 
   -- $8.3bn of realisations ($2.9bn) 
 
   -- $11.3bn of capital deployed from direct investment funds ($6.1bn) 

BUSINESS REVIEW

AUM

   -- Total AUM at 30 June 2021 was $65.2bn, up 9% from 31 March 2021 ($59.6bn) 
 
   -- Third-party AUM accounted for 94.3% of the total AUM (31 March 2021: 
      94.2%) 

Third-party AUM

   -- Third-party AUM of $61.5bn, an increase of 10% ($5.4bn) during the period 
 
   -- Raised $8.2bn of third-party AUM. Corporate Investments was the largest 
      contributor, driven by Europe VIII ($3.1bn) and associated fee-paying 
      co-investments ($0.8bn), along with ongoing fundraising for our direct 
      lending strategy (Senior Debt Partners) ($1.8bn). We continued to take 
      advantage of attractive conditions within the CLO market, amending the 
      terms of two CLOs in each of Europe and the US to lock-in enhanced future 
      returns (in aggregate accounting for $1.5bn of additions and realisations 
      within Capital Market Investments). Strategic Equity IV, within Secondary 
      Investments, raised $0.6bn 
 
   -- Additions to AUM also include $0.6bn of capital that we have called 
      during the period from vintages of funds that have previously had a 
      step-down and therefore are reflected in AUM on a net invested cost basis 
      (see Glossary on page 8 for more details) 
 
   -- At 30 June 2021 ICG had $15.7bn of third-party AUM available to deploy in 
      new investments, $10.9bn of which will earn fees when the capital is 
      invested or enters its investment period 
 
                     Corporate Investments  Capital Market Investments  Real Asset Investments  Secondary Investments  Third-party 
Third-party AUM                $m                       $m                        $m                      $m              AUM $m 
-------------------  ---------------------  --------------------------  ----------------------  ---------------------  ----------- 
At 31 March 2021                    27,207                      17,998                   6,317                  4,630       56,152 
Additions                            5,986                       1,697                      66                  1,037        8,786 
Realisations                       (1,419)                     (2,092)                    (50)                  (149)      (3,710) 
FX and other                            74                         190                      29                     24          317 
-------------------  ---------------------  --------------------------  ----------------------  ---------------------  ----------- 
At 30 June 2021                     31,848                      17,793                   6,362                  5,542       61,545 
-------------------  ---------------------  --------------------------  ----------------------  ---------------------  ----------- 
Change $m                            4,641                       (205)                      45                    912        5,393 
Change %                               17%                        (1)%                      1%                    20%          10% 
Change % (constant 
 exchange rate)(1)                     16%                        (2)%                      0%                    20%           9% 
-------------------  ---------------------  --------------------------  ----------------------  ---------------------  ----------- 
 

(1) See page 6 for an explanation of constant exchange rate calculation methodology

Third-party fee-earning AUM

   -- Third-party fee-earning AUM of $50.6bn, an increase of 8% ($3.9bn) during 
      the period 
 
   -- Realised $4.0bn of investments within our third-party fee-earning AUM; of 
      this $0.3bn can be recycled and used for new investments, resulting in 
      $3.7bn of third-party AUM being realised and no longer being counted 
      within our third-party AUM 
 
Third-party fee-earning   Corporate Investments  Capital Market Investments  Real Asset Investments  Secondary Investments  Third-party fee -earning AUM 
AUM                                 $m                       $m                        $m                      $m                        $m 
------------------------  ---------------------  --------------------------  ----------------------  ---------------------  ---------------------------- 
At 31 March 2021                         19,770                      17,205                   5,332                  4,422                        46,729 
  Funds raised: fees on 
   committed capital                      3,135                           -                      25                    416                         3,576 
  Deployment of funds: 
   fees on invested 
   capital                                1,338                       1,697                     353                    468                         3,856 
                          ---------------------  --------------------------  ----------------------  ---------------------  ---------------------------- 
Total additions                           4,473                       1,697                     378                    884                         7,432 
Realisations                            (1,603)                     (2,094)                   (111)                  (149)                       (3,957) 
FX and other                                 84                         192                      23                    123                           422 
------------------------  ---------------------  --------------------------  ----------------------  ---------------------  ---------------------------- 
At 30 June 2021                          22,724                      17,000                   5,622                  5,280                        50,626 
------------------------  ---------------------  --------------------------  ----------------------  ---------------------  ---------------------------- 
Change $m                                 2,954                       (205)                     290                    858                         3,897 
Change %                                    15%                        (1)%                      5%                    19%                            8% 
Change % (constant 
 exchange rate)(1)                          14%                        (2)%                      5%                    19%                            8% 
------------------------  ---------------------  --------------------------  ----------------------  ---------------------  ---------------------------- 
 

(1) See page 6 for an explanation of constant exchange rate calculation methodology

Direct investment funds: deployment and fund investment levels

   -- Deployed $4.5bn of capital on behalf of clients through our direct 
      investment funds (Q1 FY21: $0.4bn) 
 
   -- The table below details the investment levels for funds whose fundraising 
      cycle is dependent on the investment level of the current vintage: 
 
                                 Third-party 
                                     capital 
                    Third-party     deployed 
                      AUM at 30       during 
                      June 2021       period  Total third-party capital deployed at  % invested at 
Fund                       ($m)         ($m)                      30 June 2021 ($m)   30 June 2021 
-----------------   -----------  -----------  -------------------------------------  ------------- 
Fees charged on 
committed capital 
Corporate 
Investments 
  Europe Fund VII         3,854          482                                  3,854           100% 
  Europe Fund 
   VIII(1)                3,093          235                                    235             8% 
  Asia Pacific 
   Fund IV(1)               425            -                                    147            35% 
  Europe 
   Mid-Market             1,057          142                                    381            36% 
Secondary 
Investments 
  Strategic Equity 
   III(2)                 1,414          420                                  1,414           100% 
  Strategic Equity 
   IV(1,) (2)             1,556        1,130                                  1,130            73% 
Real Asset 
Investments 
  Infrastructure 
   Equity I(1)              578            7                                    259            45% 
  Sale and 
   Leaseback I(1)           791          195                                    546            69% 
Fees charged on 
invested capital 
Corporate 
Investments 
  North American 
   Private Debt 
   Fund II                1,200           20                                    624            52% 
  Senior Debt 
   Partners IV(2)         5,679          285                                  2,169            38% 
Real Asset 
Investments 
  Real Estate 
   Partnership 
   Capital V(3)           1,249          132                                  1,099            88% 
  Real Estate 
   Partnership 
   Capital VI(1) 
   (,) (3)                  288           80                                     80            31% 
 

(1) Fund is currently fundraising. Level of investment is shown as a percentage of third-party AUM raised at 30 June 2021

(2) Co-mingled fund, excluding SMAs and (for Senior Debt Partners) undrawn commitments

(3) Real Estate Partnership Capital funds are shown including undrawn commitments that will earn fees once drawn

   -- In addition to the $3.1bn of deployment itemised in the table above, a 
      further $1.4bn was deployed on behalf of older vintages, fee-paying 
      co-investments and separately managed accounts 

Balance sheet investment portfolio

   -- The balance sheet investment portfolio was valued at GBP2,775.7m at 30 
      June 2021, an increase of 8.6% during the period. This was driven largely 
      by the strong performance of our funds alongside which the balance sheet 
      investment portfolio is invested and which generated GBP133.3m of 
      unrealised gains 
 
   -- We invested GBP105.0m on behalf of strategies that do not yet have funds, 
      including North America Private Equity, Life Sciences and LP Secondaries 
 
                                                                                       Balance 
                                                                                        sheet 
               Balance sheet investment portfolio (excluding warehoused  Warehoused   investment 
                                     investments)                        investments  portfolio 
-------------  --------------------------------------------------------  -----------  ---------- 
As at 31 
 March 2021                                                     2,491.7         64.6     2,556.3 
New 
 investments                                                      252.0        105.0       357.0 
Realisations                                                    (225.7)       (65.3)     (291.0) 
               --------------------------------------------------------  -----------  ---------- 
Net New 
 Investments                                                       26.3         39.7        66.0 
Unrealised 
 gains                                                            133.3            -       133.3 
FX and Other                                                       18.1          2.0        20.1 
As at 30 June 
 2021                                                           2,669.4        106.3     2,775.7 
-------------  --------------------------------------------------------  -----------  ---------- 
 

Group

Acquisition of Australian real estate debt manager

   -- On 1 June 2021 ICG announced it had acquired Newground Capital Partners 
      ("Newground"), an Australian real estate debt manager 
 
   -- Newground is an arranger, investor and manager of real estate financing 
      solutions in the Australian mid-market, with offices in Brisbane, Sydney, 
      and Melbourne. The team of seven has closed over 30 transactions, 
      deployed more than A$200m of capital and manages investments on behalf of 
      over 100 clients 
 
   -- The business will underwrite loans of A$30m - A$200m to owners of 
      value-add, stabilised and construction assets 
 
   -- Investments in this strategy will be seeded initially from our balance 
      sheet, and we intend to launch a fund in due course to capitalise on the 
      growing interest in real estate debt amongst Australian investors 

Liquidity

   -- At 30 June 2021, the Group had total available liquidity of GBP652.2m 

SUSTAINABILITY AND PEOPLE

   -- Our priorities within the broader ESG landscape are to continue to 
      integrate ESG systematically into all investment activities; to maintain 
      transparent ESG communications with stakeholders; and to ensure our 
      corporate behaviour models strong ESG practice. We see the greatest 
      potential for ICG to make an impact in the areas of climate change and 
      diversity and inclusion (D&I) 
 
   -- ESG-linked fund facility put in place for Real Estate Partnership Capital 
      VI. The fund offers green loans under a Green Loan Framework to the real 
      estate sector to support environmentally sustainable economic activity 
      for developments, major refurbishments and standing operational 
      investments. The price of the fund facility is linked to annually 
      achieving one of two KPIs: either a) >50% of the AUM is under the Fund's 
      Green Loan Framework; or b) >50% of underlying AUM invested in buildings 
      constructed to an externally-verified Green Building Certification of at 
      least "Very Good" (or equivalent) 
 
   -- Europe Fund VIII launched with an enhanced ESG engagement strategy. The 
      fund is taking a thematic approach, with a particular emphasis on Climate 
      Change, Human Capital Management and D&I. These topics are consistent 
      with our broader areas of focus, are aligned with UN Sustainable 
      Development Goals 3, 5, 7, 8 and 10, and will feed directly into 
      portfolio company governance, performance tracking and reporting 
 
   -- Effective 1 July 2021, ICG joined The Diversity Project, a UK-based 
      cross-company initiative championing a more inclusive culture within the 
      investment and savings professions 

OTHER

Foreign exchange rates

The following foreign exchange rates have been used throughout this review:

 
          Average rate  Average rate  30 June 2021 period     31 March 2021 
           for Q1 FY22    for FY21            end              period end 
--------  ------------  ------------  -------------------  ------------------- 
GBP:EUR         1.1595        1.1254               1.1667               1.1750 
GBP:USD         1.3955        1.3173               1.3831               1.3783 
EUR:USD         1.2036        1.1705               1.1855               1.1730 
--------  ------------  ------------  -------------------  ------------------- 
 

At 30 June 2021 our third-party AUM was $61.5m. If GBP:USD had been by 5% higher (1.4523) our reported third-party AUM would have been $457m higher. If EUR:USD had been 5% higher (1.2448) our reported third-party AUM would have been $1,729m higher.

Where noted, this review presents changes in AUM on a constant exchange rate basis. For the purposes of these calculations, opening AUM has been translated from the underlying fund currencies to USD at the respective period end exchange rates. This has then been compared to the AUM at the period end to arrive at the change on a constant currency exchange rate basis.

Company timetable

   Payment of ordinary dividend                        5 August 2021 
   Half year results announcement                        16 November 2021 

ENQUIRIES

Investor / Analyst enquiries:

   Vijay Bharadia, CFOO, ICG        +44 (0) 20 3545 2000 
   Chris Hunt, Investor Relations, ICG        +44 (0) 20 3545 2020 

Media enquiries:

   Fiona Laffan, Global Head of Corporate Affairs, ICG        +44 (0) 20 3545 1510 

This trading statement has been prepared solely to provide additional information to shareholders and meets the relevant requirements of the UK Listing Authority's Disclosure and Transparency Rules. The trading statement should not be relied on by any other party or for any other purpose.

This trading statement may contain forward looking statements. These statements have been made by the Directors in good faith based on the information available to them up to the time of their approval of this report and should be treated with caution due to the inherent uncertainties, including both economic and business risk factors, underlying such forward looking information.

These written materials are not an offer of securities for sale in the United States. Securities may not be offered or sold in the United States absent registration under the US Securities Act of 1933, as amended, or an exemption therefrom. The issuer has not and does not intend to register any securities under the US Securities Act of 1933, as amended, and does not intend to offer any securities to the public in the United States. No money, securities or other consideration from any person inside the United States is being solicited and, if sent in response to the information contained in these written materials, will not be accepted.

ABOUT ICG

ICG provides capital to help companies develop and grow. We are a global alternative asset manager with over 30 years' history, managing $65bn of assets and investing across the capital structure.

We develop long-term relationships with our business partners to deliver value for shareholders, clients and employees, and use our position of influence to benefit the environment and society.

We operate across four strategic asset classes: corporate, capital market, real asset and secondary investments. In addition to growing existing strategies, we innovate and pioneer new strategies where the market opportunity exists.

ICG is listed on the London Stock Exchange (ticker symbol: ICP). Further details are available at www.icgam.com. You can follow ICG on LinkedIn.

GLOSSARY

 
Term          Short  Definition 
              form 
------------  -----  ----------------------------------------------------------- 
Additions            Within third-party AUM: the aggregate of new commitments 
(of AUM)              of capital by clients, and calls of capital from funds 
                      that have previously had a step-down and are therefore 
                      reflected in third-party AUM on a net invested capital 
                      basis 
                      Within third-party fee-earning AUM: the aggregate 
                      of new commitments of capital by clients that pay 
                      fees on committed capital, and deployment of capital 
                      that charges fees on invested capital (including calls 
                      of capital from funds that have previously had a step-down 
                      and therefore charge fees on a net invested capital 
                      basis) 
------------  -----  ----------------------------------------------------------- 
Balance              Balance sheet investments made alongside funds, or 
sheet                 where the balance sheet is seeding investments for 
investment            new strategies 
portfolio 
------------  -----  ----------------------------------------------------------- 
Close (of a          A stage in fundraising whereby a fund is able to release 
fund)                 or draw down the capital contractually committed at 
                      that date 
------------  -----  ----------------------------------------------------------- 
Direct               Funds which invest in self-originated transactions 
investment            for which there is a low volume, illiquid secondary 
funds                 market. Specifically, this excludes Capital Market 
                      Investments and ICG Enterprise Trust within Secondary 
                      Investments 
------------  -----  ----------------------------------------------------------- 
Fund                 A pool of third-party capital allocated to a specific 
                      investment strategy or strategies, managed by ICG 
                      plc or its affiliates 
------------  -----  ----------------------------------------------------------- 
Investment    IC     The Investment Company invests the Group's balance 
Company               sheet to seed and accelerate emerging strategies, 
                      and invests alongside the Group's more established 
                      funds to align interests between the Group's clients, 
                      employees and shareholders. It also supports a number 
                      of costs including for certain central functions, 
                      a part of the Executive Directors' compensation, and 
                      the portion of the investment teams' compensation 
                      linked to the returns of the balance sheet investment 
                      portfolio 
------------  -----  ----------------------------------------------------------- 
Realisations         Reductions in AUM due to capital being returned to 
(of AUM)              investors and / or no longer able to be called by 
                      the fund, and the reduction in AUM due to step-downs 
------------  -----  ----------------------------------------------------------- 
Recycle (of          Where the fund is able to re-invest capital that has 
AUM)                  previously been invested and then realised. This is 
                      typically only within a defined period during the 
                      fund's investment period and is generally subject 
                      to certain requirements 
------------  -----  ----------------------------------------------------------- 
Separately    SMA    A pool of third-party capital committed by a single 
Managed               investor allocated to a specific investment strategy 
Account               or strategies, managed by ICG plc or its affiliates 
                      (the Group) 
------------  -----  ----------------------------------------------------------- 
Step-down            A reduction in AUM resulting from the end of the investment 
                      period in an existing fund or when a subsequent fund 
                      starts to invest. Funds that charge fees on committed 
                      capital during the investment period will normally 
                      shift to charging fees on net invested capital post 
                      step-down. There is generally the ability to continue 
                      to call further capital from funds that have had a 
                      step-down in certain circumstances. In this instance, 
                      fees will be earned on that invested capital and it 
                      will be added to AUM through Additions 
------------  -----  ----------------------------------------------------------- 
Third-party          Value of all funds and assets managed by the Group 
AUM                   (including both invested and uninvested capital) on 
                      which the Group earns, or has the potential to earn, 
                      fees. During the investment period third-party AUM 
                      is measured on the basis of committed capital. Once 
                      outside the investment period, it is measured on the 
                      basis of invested cost. AUM is presented in US dollars, 
                      with non-US dollar denominated at the period end closing 
                      rate 
------------  -----  ----------------------------------------------------------- 
Third-party          Third-party AUM for which the Group earns a management 
fee-earning           or performance fee on the date in question 
AUM 
------------  -----  ----------------------------------------------------------- 
Total AUM            The aggregate of third-party AUM and the balance sheet 
                      investment portfolio, excluding warehoused investments 
------------  -----  ----------------------------------------------------------- 
Total                Total available liquidity comprises unencumbered cash 
available             and available undrawn debt facilities 
liquidity 
------------  -----  ----------------------------------------------------------- 
Warehoused           Investments within the balance sheet investment portfolio 
investments           that the Group anticipates transferring to a fund 
                      in due course, typically made where the Group is seeding 
                      new strategies in anticipation of raising a fund 
------------  -----  ----------------------------------------------------------- 
 

Attachment

   -- Q1 Trading Statement 
      https://ml-eu.globenewswire.com/Resource/Download/eb496429-257f-495b-9fd9-ca74f71f58e5 
 
 
 

(END) Dow Jones Newswires

July 29, 2021 02:00 ET (06:00 GMT)

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