ICG may enter infrastructure, real estate

London-based listed fund manager, Intermediate Capital Group, is likely to expand its operations into other asset classes such as infrastructure and real estate.

Mezzanine debt provider Intermediate Capital Group (ICG) is considering expanding its operations to other asset classes including infrastructure and real estate.

The company indicated the possible move during its first-half results to 30 September 2010. Sources close to the firm confirmed
the intention but said no decision by ICG had been taken officially. 

However, Christophe Evain, chief executive officer of ICG, said in the latest earnings report that the firm's activities could be “successfully applied to adjacent asset classes”.

“From our origins in mezzanine finance, we have successfully expanded into leveraged loans, high yield bonds, minority equity investments and more recently recovery assets,” he added.

ICG's assets under management (AUM) rose €481 million between the second and third quarters, with current AUM at €11.7 billion. The company reported a profit before tax of £105.1 million as compared to £97.7 million in the period ending March 2010.

ICG is a London-based listed fund manager that has deployed capital on behalf of more than 170 investors through mezzanine, credit and minority equity funds specialising in mid-market transactions. The company has an investment team operating from its head office in London and offices in Paris, Madrid, Stockholm, Frankfurt, Amsterdam, Hong Kong, Sydney and New York.