21st Jan 2014 10:29
LONDON (Alliance News) - Intermediate Capital Group PLC Tuesday said it raised strong levels of new third-party money in the third quarter, lifting nine-month gross inflows above the full previous year.
Intermediate Capital, which structures and provides mezzanine finance, leveraged credit and minority equity, said it raised EUR1.1 billion in new third-party money in the three months to December 31, meaning EUR2.8 billion has been raised in the year to date.
In the entirety of its last financial year, the company raised EUR2.3 billion in third-party money.
Intermediate Capital, which did well in the 2007 credit crunch as banks struggled to syndicate loans, specialises in mezzanine finance - a combination of debt and equity financing that gives the lender the right to equity if the debt isn't repaid in time or in full.
Shore Capital analyst Gary Greenwood said: "With further fund inflows anticipated in the final quarter, we would expect the company to exceed its previous guidance on fundraising of EUR2.8 billion for the year as a whole."
Greenwood attributed the fund inflows to the success of Intermediate Capital's Senior Debt Partners fund, which raised EUR563 million in the the third quarter, taking its total for the year to date to EUR1.3 billion.
Intermediate Capital said it expects another deal for the Senior Debt Partners fund to come through "shortly" that would increase that figure to EUR1.5 billion - some way ahead of its original EUR1 billion target.
Intermediate Capital's total assets under management rose by 2% to EUR12.3 billion in the quarter as a result of fewer realisations but are still down 5% since the start of the financial year, which Intermediate Capital put down to the "strong" level of realisations in the first-half.
In the statement, Intermediate Capital said it continued the pace of investment in the quarter, deploying GBP492 million of capital on behalf of its funds. In addition, Intermediate Capital's investment company invested GBP84 million in the quarter and GBP215 million in the year to date.
Despite describing its mezzanine portfolio as "robust", Intermediate Capital said there remains "a small number" of companies that show no signs of recovery.
Intermediate Capital said its balance sheet remains well funded with available cash and unutilised bank lines amounting to GBP832 million at the end of the quarter.
Intermediate Capital shares were Tuesday quoted at 428.43 pence, up 2.30 pence, or 0.5%.
By Samuel Agini; [email protected]; @samuelagini
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