Debt fund demand helps drive record fundraising year for ICG

Michael Bow
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DEBT specialist Intermediate Capital Group (ICG) yesterday celebrated a record year for fundraising amid a growing clamour for debt funds from investors.

ICG raised €3.8bn (£3.1bn) from investors for the year ending in March – 70 per cent higher than its previous record fundraising.

The business has been on the road marketing 14 different strategies. Nearly half of its fundraising total came from first time funds and new products, it said yesterday.

“It’s an attractive part of the market at the moment. A lot of the traditional asset classes are pushing investors to inject money into alternative asset classes,” chief executive Christophe Evain told City A.M. yesterday.

The FTSE 250-listed business offers a myriad of credit funds and has been boosted by the revival of collateralised loan obligations (CLO) in the US and Europe.

The group raised €1.3bn from three European CLOs during the year, and launched its first US CLO.

The busy 12 months helped drive group pre-tax profits up 11 per cent to £158.7m from £142.6m last year.

The company confirmed a share buyback programme of up to £100m over the next 12 months.

Realisations also achieved a record, after sales generated £1.1bn of cash over the year.

“It’s been a very positive year for very for investments, operations and our strategic objectives,” Evain added.

Shares fell 3.7 per cent yesterday.