ICG to spend up to £200m in 2010

Europe’s largest mezzanine capital provider to LBOs has nearly €2bn in investment capacity, including a €780m credit facility.

Intermediate Capital Group (ICG) has said it will spend £150 million to £200 million this year, investing cautiously “given the fragility of the economic recovery”.

The publicly listed mezzanine capital provider, which also takes minority equity positions in companies, has a total investment capacity of £1.7 billion between its various funds as well as an undrawn £780 million credit facility, according to its interim management statement for the three months ended 30 June. ICG said it had invested £10 million during that three-month period to support two undisclosed investments. A spokesperson declined to provide further detail.

ICG also noted a greater proportion of the firm’s investment portfolio companies, 64 percent, were performing at or above their prior year levels according to a quarterly review conducted in June. That was up from 59 percent from a review conducted in March.

Realisations “have continued to be strong”, according to the statement, which noted ICG exited Jet Broadband and Hudson and that its mezzanine investment in Taiwan Broadband Communication had been repaid. The firm also sold Pasteur Cerba for a £7 million capital gain to PAI Partners.

ICG’s latest fund, the ICG Recovery Fund, invests in companies constrained by debt levels. The fund closed on €843 million in April.