Thursday 21 July 2016 7:37 am

Asset manager ICG talks up prospects after Brexit vote

Alternative asset manager Intermediate Capital Group has told shareholders it is “well placed to deal with” Brexit uncertainty.

Chief executive Christophe Evain, who recently said Brexit the vote was “terrible” for London in an interview with City A.M., acknowledged that reduced levels of M&A activity are expected after the referendum, “resulting in a slower investment pace in the UK and fewer realisations of UK assets”.

But he added: “There will be minimal impact on fees as the majority of the capital we manage is in closed end funds.

“Elsewhere, it is too early to assess the impact of the EU referendum, if any, on the performance of the underlying portfolio companies. We have a long established presence in Europe operating through existing subsidiaries and remain dedicated to our operations throughout Europe.

“Currently, we do not anticipate the need for any significant organisational change, but will continue to monitor Brexit developments and react quickly to any possible impact on our business model.”

ICG reported a one per cent growth in assets under management (AUM) to €21.9bn (£18.2bn).

Evain added: “Long term, market conditions remain favourable for alternative asset classes as institutions search for yield in the continuing low interest rate environment and banks withdraw from the investment market.

“Furthermore, our efficient, yet robust, decision making processes coupled with the flexibility of our balance sheet capital and third party fund mandates means we will be able to capitalise on any market opportunities that present themselves in the current environment.”