ICG shares rise with interim guidance boost on reporting policy change

ICG PLC on Thursday raised expectations for operating margin and performance fees, based on changes to its account reporting policy.

In the medium term, the London-based private equity investment firm anticipates that between 10% and 20% of total fee income will comprise performance fees, up from the previous range of 10% to 15%. Fund management company operating margin is predicted to exceed 54%, up from 52% previously.

For the six months that ended September 30, ICG estimated performance fees ranging from £90 million to £95 million, compared to £32.8 million a year previous. It also expects to recognise a one-off gain between £65 million and £75 million.

ICG shares were up 4.1% to 2,304.00 pence on Thursday morning in London. Its interim results are due on November 18.

The change in reporting is ‘to make performance fees more visible’, according to ICG, specifically in the earlier stages of a fund’s life, but will not affect the total performance fee ICG receives over the fund’s lifespan.

‘We expect performance fees to remain a relatively small but increasingly valuable revenue stream for us,’ the firm added.

It is adjusting when it begins to recognise fees, to avoid ‘management judgement around timing of when a fund is likely to reach its performance fees hurdle’. It is also applying a discount based on an assumed fund life of 12 years, rather than 10 as was previously the case, and will base fee revenue on a given fund‘s value at the date of the financial statements.

Copyright 2025 Alliance News Ltd. All Rights Reserved.