Intermediate Capital confident after 'defining year'
By Josh White
Date: Thursday 26 May 2022
(Sharecast News) - Intermediate Capital Group described a "defining year" in its final results on Thursday, as total assets under management rose 26% to $72.1bn (£57.32bn).
The FTSE 100 company said fundraising in the 12 months ended 31 March reached a record $22.5bn, up 112%, which was raised across a "broad range" of emerging and established strategies.
Third-party fee-earning assets under management grew 30% on a constant currency basis to $58bn, while third-party fee income was £449m for the year, which was an increase of 34% over the 2021 financial year.
In the fund management company, ICG reported profit before tax of £286m, making for an increase of 41% year-on-year.
The board declared total dividends of 76p per share for the year, up 36% year-on-year and making for the 12th consecutive annual increase in the ordinary dividend per share.
Net asset value per share stood at 696p at year-end, up from 566p, and group earnings per share improved to 187.6p from 162.3p.
ICG's net gearing stood at 0.45x, with the board's long-term objective to reach zero net gearing.
The directors also accelerated their fundraising guidance by a year due to "confidence" in the firm's outlook and execution, and were now looking at at least $40bn in total fundraising between 1 April 2021 and 31 March 2024 - a year earlier than previously guided.
"This has been a defining year for ICG both in our market standing and in our growth trajectory," said chief executive and investment officer Benoît Durteste.
"Our scale, diversification, brand and investment performance have combined to generate a record year on many levels.
"We more than doubled our previous fundraising record, grew our client base by 23%, and substantially increased our fee income and fund management profits."
Durteste said ICG was continuing to scale to meet increasing client demand across its "waterfront of strategies", with growing assets under management providing a "diverse and locked-in" stream of management fees.
"We have been able to scale up existing flagship strategies considerably and we have had outstanding success with two first time funds, cementing substantial organic growth for the coming years.
"We have started the 2023 financial year in a strong position both strategically and financially, with substantial capital to deploy and a robust balance sheet."
Durteste said he was "confident" in the company's future prospects.
"Structural tailwinds remain supportive of the industry and ICG is well positioned to take advantage of the opportunities that invariably arise in more volatile market conditions.
"This confidence is reflected in the acceleration of our fundraising guidance as we look to continued growth and success in the coming years."
At 0846 BST, shares in Intermediate Capital Group were up 6.27% at 1,550p.
Reporting by Josh White at Sharecast.com.
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