Intermediate Capital warns of volatility despite strong annual results

Intermediate Capital Group PLC on Wednesday warned that the new financial year had started with ‘notably higher levels of volatility and uncertainty,’ even as it delivered a ‘milestone year’ and a 15th consecutive dividend increase.

The London-based asset manager, which is rebranding as ICG PLC, said the investment environment remains potentially volatile, though it expects to be resilient due to strong fundraising momentum and secured fee income.

Assets under management as of March 31 rose 14% year-on-year to $112.4 billion from $98.4 billion, with fee-earning AuM up 7.7% to $75.1 billion from $69.7 billion. The firm raised $24 billion in the year, including closing the world’s largest GP-led secondaries fund, Strategic Equity V, and Europe’s largest direct lending fund, SDP V.

Fund management company revenue increased 17% to £766.0 million in the financial year ended March 31, from £652.0 million, supported by a 19% rise in management fees to £603.8 million. Performance fees also rose 17% to £86.2 million.

However, net investment return nearly halved to £192.5 million from £379.3 million, and pretax profit fell 11% to £532.2 million from £597.8 million.

The company proposed a final dividend of 56.7 pence per share, up 6.6% from 53.2p a year ago. This brings the total payout to 83.0p, up 5.1% from 79.0p.

Looking ahead, ICG reiterated its medium-term guidance and said it had anchored near-term financial performance through dry powder and fee income. It plans to seek shareholder approval to change its name at its annual general meeting in July.

Shares in ICG were up 2.5% to 2,106.00p each in London on Wednesday morning.

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