Intermediate Capital raises $2.4bn for third secondary fund

Over the period, assets under management were up 4% to €42.6bn at ICG

Intermediate Capital Group has closed its third Strategic Equity Fund at $2.4bn, far above its $1.6bn target.

The fund, which focuses on GP-led secondary transactions, has doubled the size of its $1.1bn predecessor that closed in July 2017. The amount raised includes a $200m commitment by London Stock Exchange-listed ICG.

The firm said the fund has already closed two transactions and has committed to a third, which is expected to close in the coming weeks. The three investments represent more than $1bn of commitments and include a portfolio of companies across North America, Europe and Asia.

The announcement was made alongside ICG’s third quarter of the year trading statement for the three months to December 31. Over the period, assets under management were up 4% to €42.6bn, with year to date inflows of €6.2bn.

“Demand for ICG’s strategies remains high given both our strong investment performance and continued underlying demand for alternative assets,” said Benoît Durteste, chief executive officer. “The third vintage of our strategic equity strategy has benefitted from this demand, closing with significantly higher AUM and higher average fee rates than the previous vintage. It is also pleasing to see continued strong flows into our open-ended capital market funds.”

Through its direct investment funds, the firm deployed a total of £1.17bn in the third quarter, up from £880m year on year. Elsewhere, third-party fee earning AUM was 5% higher at €34.6bn, compared with September 30, 2019.

ICG went on a hiring spree last year, making several appointments to senior positions. The firm hired Vivien Blossier from Unigestion to lead its secondary investments division, and brought in Alan Jones from Morgan Stanley to build its private equity business in North America.

Most recently, in January, it appointed two managing directors to help deploy the €1bn of capital it raised for its new mid-market fund.

Source: Financial News

Can’t stop reading? Read more