ICG’s gains on investment jump 72% to £145m

European mezzanine provider Intermediate Capital Group also put a record amount of capital to work in the fourteen months to 2005, arranging or providing £899m of debt financing.

London-listed mezzanine finance provider Intermediate Capital Group (ICG) has reported gains on investments of £145 million in its results for the fourteen months ended 31 March 2006.

ICG reported that it had seen a 98 percent increase in gains on investment, with £145 million (€210.5 million; $271 million) in the 14 months to 31 March 2006 compared to £63 million for the 12 months to 31 January 2005.
ICG also put a record amount of capital to work during the year, arranging or providing £899 million of debt financing for 37 companies.
Core income for the group increased by 22 percent to £106 million, compared to £75 million for 2005, while pre-tax profits also saw a sizeable increase, up 72 percent to £190 million from £95 million.
Funds under management increased to £3 billion following ICG’s recent $500 million closing of the Intermediate Capital Asia Pacific Mezzanine Fund 2005, its first Asia-focused mezzanine vehicle. ICG also launched its open-ended Eurocredit Opportunities I fund, which invests in sub-investment grade loans and bonds in Europe. To date, the fund has raised €675 million since November 2005.
John Manser, chairman of ICG, said in a statement: “Core income showed strong growth, increasing by 22 percent. Gains on investments doubled those of any previous year, leading to record pre-tax profits. We also achieved growth in the loan book in an active and competitive market despite rejecting record numbers of potential new deals on the grounds of excessive risk.”
According to ICG, ICG Mezzanine Fund 2003, which has a total size of €1.5 billion comprising €668 million of commitments from 30 investors and leverage through a securitised debt facility, is now approximately 70 percent invested. At 31 March 2006, the vehicle had made 63 mezzanine investments, of which four have been realized in full and five have been repaid.