ICG targets zero net debt, plans to return excess capital as H1 earnings rise 18%

Intermediate Capital Group (ICG) reported a 18% increase in first-half fee-related earnings to £199 million, with management fees growing 12% to £374 million. The company set a medium-term goal of zero net debt, stating that any surplus funds would be returned to shareholders. Despite this positive news, ICG's profit before tax decreased by around 18% to £287.3 million, as performance fees fell significantly, dropping from £98 million to £24 million.

Still, fee-related earnings per share increased by 18% to 68 pence, and the fee-related earnings margin rose by 3 percentage points to 53.1%. Operating cash flow stood at £219 million, a notable drop from £467 million earlier in the year. Net debt was £93 million. Earlier this year, ICG closed its Europe IX fund, a record €12 billion structured capital fund, which was extensively oversubscribed.

During the half, the company raised $7.6 billion, and fee-earning assets grew by 9% to $90 billion. Since April 2024, ICG has raised $48 billion towards its $55 billion target by March 2028. CEO Benoît Durteste described the company as being in an "exciting period of inflexion," highlighting its growing recognition from institutional clients for its long-term performance focus.

Amid concerns of a second consecutive year of decline in private capital fundraising, ICG plans to use excess capital to benefit shareholders. The company also launched its first product with Amundi, a private equity secondaries fund, and plans to expand into the wealth market. ICG raised its interim dividend by 5% to 29.0 pence a share and reaffirmed its commitment to a progressive dividend policy.