17th Nov 2015 08:03
LONDON (Alliance News) - Intermediate Capital Group PLC on Tuesday said that assets under management grew by 12% over the course of the first half of its financial year, bolstered by strong fundraising across its mezzanine and credit funds.
In addition, the group said it is on track to meet key targets, including a return on equity of more than 13% by growing the business and, by July 2016, re-gearing its balance sheet. Return on equity was 12.1% in the half, against 9.8% in the corresponding period the prior year.
The specialist asset manager, which structures and provides mezzanine finance, leveraged credit and minority equity, said total assets under management amounted to EUR20.18 billion on September 30. That was higher than the EUR18.01 billion recorded on March 31.
Third party assets under management accounted for about 90% of total assets under management at the end of September, increasing to EUR17.82 billion from EUR15.67 billion during the half.
Intermediate Capital said the increase in assets under management was due to a "strong start" to the fundraising year, particualrly in its European funds, partially offset by realisations.
The group said that EUR3.2 billion of new money was raised in the first half, with its larger European funds contributing 68% of the total raised. "
"As fundraising for these larger European funds is now substantially complete, our fundraising focus is now principally on our newer strategies. We are confident that the second half of the financial year will see final closes for our first Japanese Mezzanine Fund and North America Private Debt Fund, both at or above their target size, and further closes for our UK Real Estate and Asia Pacific Funds," Intermediate Capital said.
Pretax profit fell to GBP93.9 million in the half, compared with GBP95.7 million in the corresponding period the prior year.
The company increased its interim dividend by 4.3% to 7.2 pence per share, and said it will update shareholders on its capital structure plans at the time of its results for the full year. Those details will include information about any potential capital return.
By Samuel Agini; [email protected]; @samuelagini
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