ICG puts record amount to work

European mezzanine provider Intermediate Capital Group invested an unprecedented £778m in deals last year while lifting profits to a new height also.

UK-listed mezzanine house Intermediate Capital Group (ICG) has announced its preliminary results for the year ended January 31, 2005, recording a pre-tax profit of £95.5 million (€140 million; $180 million).

 

The figure represents a jump of 48 percent on last year’s results. The firm also reported an increase in core income – which the firm defines as net interest income plus fee income less related administrative expenses – to £75.1 million.

 

Benefiting from strong private equity-backed buyout investment activity across Europe, the firm also achieved a record £778 million of financings arranged or provided, up 19 percent on the previous year.

 

I am particularly pleased that we have achieved these record results in the financial year prior to Tom Bartlam’s retirement as managing director

John Manser, chairman ICG

 

The firm invested principally in medium-sized transactions in the European mid-market, although it was also involved in two of the largest private equity deals in the UK. The firm took £85 million participations in the respective LBOs of motoring roadside recovery operator The Automobile Association and holiday and insurance group Saga.

 

ICG invested across Europe, making 11 new loans in the UK and nine in France in addition to investments in Germany, Sweden, Denmark, the Netherlands and Switzerland.

 

The firm’s funds under management rose to £2.4 billion with the close in May 2004 of the ICG Mezzanine Fund 2003 on €668 million, which with gearing is expected to deploy approximately €1.5 billion. The fund is currently around 45 percent invested.

 

The firm also opened an office in Frankfurt to add to its current locations in London, Hong Kong, Madrid, Paris and Stockholm.

 

Commenting on the results, ICG chairman ICG John Manser said in a statement: “Core income, capital gains and pre-tax profits all reached record levels. I am particularly pleased that we have achieved these record results in the financial year prior to Tom Bartlam’s retirement as managing director.”