Profits rise at fundraising ICG

Intermediate Capital Group has reported a 23 per cent increase in interim pre-tax profits and has also held a first close for its sixth fund.

Intermediate Capital Group (ICG), the listed UK-based provider of mezzanine finance, has reported a 23 per cent increase in pre-tax profits for the six months to 31 July 2003.

 

The firm has also announced the first close of its sixth fund, Mezzanine Fund 2003, which has so far secured commitments of E250m. A spokesperson for the firm said that a further close, with some E100m of further commitments, is imminent and that the fund is expected to have total cash resources (including gearing) in excess of E1bn when final closing is reached.

 

In its interim statement, ICG chairman John Manser said the firm had experienced a strong level of new lending which the firm expected to continue into the second half of the current financial year. The firm’s loan book was up 18 per cent to £1.03bn in the first half.

 

In the six months to 31 July, ICG reported a 31 per cent increase in core income to £28.4m compared with the corresponding period in the previous year. Pre-tax profits for the first half increased by 23 per cent to £32.1m.

 

Since its formation in 1989, ICG has arranged or provided over £3bn of mezzanine finance in nearly 200 transactions across Western Europe. When ICG listed on the London Stock Exchange in 1994, its portfolio of mezzanine loans and investments was £144m. The portfolio now stands at £1bn.

 

“We have had a first closing on our latest mezzanine fund, the total size of which we are confident will exceed E1bn, including gearing,” said Manser. “In the first half we have seen a strong flow of attractive mezzanine opportunities throughout Europe.”

 

“The demand for mezzanine has been strong over the past twelve months and we believe it should continue for the rest of the year, although not perhaps at quite the same pace,” Manser added. “ICG’s market position will be further strengthened by our new mezzanine fund.” 

 

As reported elsewhere on PEO today, research undertaken by Initiative Europe and Mezzanine Management has revealed that mezzanine investment has surged across Europe with E3bn having been deployed in the first six months of this year.