ICG profits fall despite strong higher management fees

(Sharecast News) - ICG reported a fall in half-year profits on Wednesday despite double-digit growth in management fees and fee-related earnings, as performance fee income dropped sharply. The alternative asset manager posted an 18% decline in adjusted pre-tax profit to £287.3m for the six months to 30 September, down from £351.6m a year earlier. Statutory pre-tax profit fell 18% to £291.2m from £354.1m.

Profit after tax on an adjusted basis dropped 22% to £231.2m, while earnings per share fell to 80p from 102p.

The decline came despite a 12% increase in management fees to £374m and an 18% rise in fee-related earnings to £199m, with the latter benefiting from an improvement in operating margins.

However, performance fee income fell to £24m from £98m, although the previous year's figure included a £72m one-off benefit relating to an accounting change.

Assets under management stood at $145bn at the end of September, while fee-earning assets rose 9% year-on-year on a constant currency basis to $90bn.

ICG raised $7.6bn during the half-year, including the final close of its Europe IX fund at €12bn, which it described as the largest structured capital fund ever raised globally.

The company maintained its medium-term financial guidance, including a fundraising target of at least $55bn between April 2024 and March 2028, having already raised $48bn.

It also announced plans to maintain zero net debt over the medium term and return excess capital to shareholders after investing in growth opportunities.

The interim dividend was increased 5% to 29p per share.

Chief executive Benoît Durteste said: "Looking ahead, we have high conviction in our ability to continue gaining market share in the institutional client segment across a number of strategies."

The stock was up 2.4% at 2,000p by 1015 GMT.

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