Q3 Trading Statement for the period to
Highlights
- Total AUM up 4% on 30 September to €42.6bn, with €1.6bn of new money raised in the third quarter. Year to date inflows amount to €6.2bn
- New money raised includes €0.4bn for our strategic equity strategy which closed its third vintage at
$2.2bn (€2.0bn) in January, 2.5x the size of the previous vintage
- Third party fee earning AUM 5% higher at €34.6bn, compared to
30 September 2019
- Disciplined deployment across strategies, with all funds on course to meet or exceed performance hurdle rates
Commenting,
“Demand for ICG’s strategies remains high given both our strong investment performance and continued underlying demand for alternative assets. The third vintage of our strategic equity strategy has benefitted from this demand, closing with significantly higher AUM and higher average fee rates than the previous vintage. It is also pleasing to see continued strong flows into our open-ended capital market funds.
Our strategy remains focused on delivering superior performance for clients across a broad range of proven investment strategies, while also building our capabilities in newer segments to provide further diversification. These capabilities will help us as we grow, ensuring we have the expertise to not only find the most attractive investment opportunities but also to realise assets within our portfolio, lock in performance and return capital to investors. I am also delighted that our progress on ESG matters has been recognised with an upgrade of our CDP filing score to an A-.”
Business review
Total AUM increased 4% over the three months to
We also saw further inflows for our Australian senior debt fund, Capital Markets strategies and raised €0.5bn for our real estate strategies, including completing the fundraising for ICG Longbow Fund V. Fundraising for the next vintage of
Corporate Investments €m | Capital Market Investments €m | Real Asset Investments €m | Secondary Investments €m | Total Third Party AUM €m | |
At | 18,474 | 13,135 | 4,004 | 2,767 | 38,380 |
Additions | 190 | 476 | 501 | 428 | 1,595 |
Realisations | (7) | (29) | (113) | (19) | (168) |
FX and other | (20) | (52) | 179 | (42) | 65 |
At | 18,637 | 13,530 | 4,571 | 3,134 | 39,872 |
Fee earning AUM - at | 15,297 | 13,046 | 3,237 | 3,004 | 34,584 |
Our strong origination capability means we can continue to source attractive investments for our funds, while maintaining our rigorous and disciplined investment approach. The total amount of capital deployed on behalf of our direct investment funds was £1,167m in the quarter (three months to
Strategic asset class | Fund | % invested at 31 December 2019 | % invested at | Assets in fund at 31 December 2019 | Deals completed in Q3 |
Corporate Investments | ICG Europe Fund VII | 48% | 48% | 7 | 0 |
Corporate Investments | North American Private Debt Fund II | 26% | 24% | 7 | 1 |
Corporate Investments | Senior Debt Partners III¹ | 77% | 65% | 35 | 6 |
Corporate Investments | Asia Pacific Fund III | 93% | 93% | 8 | 0 |
Real Asset Investments | ICG Longbow Real Estate Fund V | 55% | 49% | 13 | 2 |
Secondary Investments | Strategic Equity III | 20% | 9% | 2 | 1 |
¹ Co-mingled fund, excluding mandates and undrawn commitments
85% of our AUM is in closed end funds where outflows occur with the realisation of the underlying portfolio companies. Although lower in the quarter, we continue to see a healthy path for realisations as our portfolio managers capitalise on market liquidity and actively realise assets within their portfolios. Recent fundraising success also means only 17% of our AUM is in its realisation phase.
The balance sheet investment portfolio was £2,303m at
The balance sheet remains well funded with available cash and unutilised bank lines of £719.6m at
Performance fees guidance update
As we grow our global alternative asset management business, with larger fund sizes, stable or increasing fee rates, and new fund strategies, we have increased third party management fees in each of the last six years. As yet we have not seen a similar growth in performance fees, which are an integral recurring part of the fee profile. This is because not all funds attract performance fees and they are recognised later in the fund life when it is highly probable that the revenue will not be reversed in the future.
We therefore expect the level of performance fees, in absolute terms, to grow. That said, as third party management fees are also expected to continue to grow, based on current product mix, performance fees as a percentage of total third party fees are expected to represent 10-15% of total third party fees.
Capital markets day
Later this morning we will be holding a Capital Markets Day which will be an opportunity for management to present and discuss the Group’s strategy and business model. For those unable to attend in person, the presentation will also be streamed live at
Enquiries
Analyst / Investor enquiries:
Media enquiries:
This trading statement has been prepared solely to provide additional information to shareholders and meets the relevant requirements of the
This trading statement may contain forward looking statements. These statements have been made by the Directors in good faith based on the information available to them up to the time of their approval of this report and should be treated with caution due to the inherent uncertainties, including both economic and business risk factors, underlying such forward looking information.
These written materials are not an offer of securities for sale in
About ICG
ICG is a global alternative asset manager with over 30 years' history.
We manage €42.6bn of assets in private debt, credit and equity, principally in closed-end funds. We provide capital to help companies grow through private and public markets, developing long-term relationships with our business partners to deliver value for shareholders, clients and employees.
We operate across four asset classes – corporate, capital market, real asset and secondary investments. In addition to growing existing strategies, we are committed to innovation and pioneering new strategies across these asset classes where the market opportunity exists.
ICG is listed on the
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