Shares of Intermediate Capital Group Increase After it Raises a Record €5.2bn


On Tuesday, Intermediate Capital Group (ICG), an asset manager, saw its shares jump up after it raised €5.2bn (£4.7bn) – the highest fund of its kind that was raised in Europe in 2017 and the biggest ever of the company.

The €27.2bn group, which sold its chunk of steak restaurant chain Gaucho in 2016, was one of the largest risers on the FTSE 250 after revealing the mammoth fundraising.

According to Prequin, a data provider, it is the largest debt fund in Europe in 2017, and it overshadows the two next largest funds of ICG which both secured €3bn in 2015.

The shares of the company closed up 8.2pc at £10.06.

In 2011, the firm entered the direct lending market in order to fill a gap that was left by banks after the financial crisis and has since observed demands grow rapidly.

“We’ve clearly seen a period of rapid expansion in direct lending over the last two years as the shift away from traditional bank lending continues,” stated ICG’s head of senior direct lending in Europe, Max Mitchell.

The €5.2bn that was raised will be utilised to invest in businesses “led by strong management teams” that are mainly in Europe and the United Kingdom. It coincided with the six-month results of the firm to September 30.

Helping to offset a 24 percent drop in the overall group profit of the company for the six months to September 30 compared to that of 2016, the firm said that it saw profits across its fund management company rise by 30 percent during the period.