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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