Highlights
- Continuing our long-term trajectory of growth and value creation
- Higher interest rates and period of dislocation positively impacting a number of ICG’s strategies
- Robust fundraising of $6bn, including final closes above initial target size for Europe VIII, Strategic Equity IV and Asia Pacific IV; over $28bn raised in last eighteen months
- Third-party fee income: £265.3m during the period, an increase of 33% compared to H1 FY22
- Fund Management Company: profit before tax of £143.7m, an increase of 19% compared to H1 FY22
- Strong operational performance of portfolio companies underpinning broadly flat fund valuations and NIR of (1)%
- Group profit before tax of £35.6m (H1 FY22: £264.7m) and Group EPS of 13.5p (H1 FY22: 83.9p), impacted by Investment Company loss of £(108.1)m (H1 FY22: profit of £143.8m)
- Interim dividend of 25.3p (H1 FY22: 18.7p)
- Strong balance sheet: net gearing of 0.55x, liquidity of £1.3bn, NAV per share of 658p (31 March 2022: 696p)
- William Rucker appointed as Non-Executive Director and Chair effective 31 January 2023, as announced separately
Benoît Durteste, CEO and CIO:
We take a long-term perspective on managing ICG, and have been building resilience and growth levers into the business for a number of years. The fruits of this work are evident in our performance for this period. Today we have over 600 clients, our fee-earning AUM is up 16% year over year(1) and we have generated third-party fee income of £515m over the last twelve months.
We have continued to raise, deploy and realise AUM successfully against a challenging macro backdrop. As expected given our focus on downside protection, our funds are showing attractive performance through a period of volatility. Indeed, our debt strategies are generating historically high returns for clients.
The scaling of our product offering is increasingly evident. We have raised over $28bn since the beginning of this fundraising cycle 18 months ago, more than half of which has been within Structured and Private Equity. And today we are raising capital for strategies within Private Debt and Real Assets with floating-rate and inflation-protected income characteristics, which should be particularly attractive in the current environment.
As a result, our ability has never been greater to meet client demand for private markets and to provide capital to companies in the form most appropriate to their needs. With over thirty years of experience, a broad waterfront of products enabling us to invest flexibly across the capital structure, and a valuable balance sheet, we are well positioned strategically and financially to capitalise on opportunities arising from this period of dislocation and to continue to generate long-term value.
Notes:
Unless otherwise stated the financial results discussed herein are on the basis of Alternative Performance Measures – see page two of the announcement PDF
(1) On a constant currency basis
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