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ICG's assets under management jump to $56.15 billion, raises fundraising targets

By Reuters

– Asset manager Intermediate Capital Group Plc posted a 19% jump in its full-year third-party assets under management (AUM) to $56.15 billion on Tuesday, as COVID-19 vaccinations and government support measures boosted investor sentiment.

The UK-listed alternative asset manager also upgraded its fundraising outlook to $40 billion in the four years to fiscal year 2025 end, and at least $7 billion every year following a robust performance in the 12 months to March 31.

“Client demand for our strategies in the year was materially higher than we had initially anticipated in an off-cycle year amid a challenging environment, with total fundraising of $10.6 billion – our third largest year on record,” ICG said in a statement.

The company, which manages assets in private debt, credit and equity, principally in closed-end funds, has benefited from a sharp rebound in markets after its investment division was pushed into a loss last year when the pandemic hit risk appetite.

The UK’s benchmark FTSE 100 stock index has gained more than 40% from its pandemic lows in March last year, boosted by investors gaining confidence about a faster pace of economic recovery from the health crisis, thanks to stimulus measures and a pickup in global COVID-19 inoculations.

Overall pretax profit rose to 507.7 million pounds ($718.40 million) from 110.8 million pounds a year earlier, while third-party AUM reached $56.15 billion.

ICG, which was promoted to UK’s blue-chip index last year, raised its total dividend by 10% to 56 pence a share.

($1 = 0.7067 pounds)