(Sharecast News) - Intermediate Capital Group saw a continued pick-up in business in the June quarter with activity in some segments having returned to their pre-Covid-19 levels, although fundraising was expected to slow throughout the year.
Assets under management were 1.0% higher quarter-on-quarter at €45.6bn during the second quarter, as portfolio valuations recovered amid "good" or positive signals for future activity.
The firm, which specialises in private debt, credit and equity said that realisation activity of €559m had resumed at pre-Covid 19 valuations and that it had clinched €2.4bn of deals in exclusivity, terming the latter a "good indicator of investment pace and future fundraising pipeline".
The company raised €1.236bn of new money in the first quarter of its financial year, despite the longer onboarding process as a result of the pandemic, "with good visibility for the coming months".
Indeed, ICG chief, Benoit Durteste, said that the "early rebound" in investment activity as lockdown measures were lifted and business activity resumed, "bode well for next year's fundraising prospects".
Expectations for the current year however were for a slowdown in fundraising given the disruption from the pandemic and the "natural fundraising cycle for our larger funds".
Once the Senior Debt Partners strategy was fully raised, ICG said that it was not planning to have any larger funds in the market during the current financial year.
According to the company, there were further net inflows into its Senior Debt Partners strategy and across its Capital Markets strategy.
ICG also raised €0.2bn for its Asia Pacific strategy and closed a European Collaterised Loan Obligation during the past quarter.
By strategic asset class, third party AuM in corporate and capital market investments increased but secondary investments and those in real assets fell.
Management described the alternative asset managers' financial position as "robust", telling shareholders that its balance sheet was well-capitalised, with £1.1bn of liquidity available.
As of 0813 BST, shares of Intermediate Capital Group were 0.5% higher at 1,407.0p.
4 Jun 2020 07:37
ICG assets under management rise, but investment arm feels CVOID-19 pain
June 4 (Reuters) - Intermediate Capital Group on Thursday posted a 22% jump in full-year assets under management (AUM) but lower valuations triggered by the coronavirus pandemic pushed its investment arm into a 68.6 million pound loss for the per...
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