Shares in London-listed Intermediate Capital Group (ICG) were up by over 8% this morning after the specialist asset manager unveiled a €5.2bn debt fund raise.
The private debt, credit and equity manager said the funds would mainly be invested in senior secured loans in UK and European mid-market businesses.
It is believed to be the largest debt fund raise in Europe this year and represents further evidence of the ongoing boom in direct lending over recent years as banks have retreated from some of their traditional activities post-financial crisis.
ICG said the fund raise was significantly oversubscribed and received strong support from both new and existing investors, with particularly high levels of interest from European and UK pension funds.
Max Mitchell, head of senior direct lending Europe at ICG, said: “We’ve clearly seen a period of rapid expansion in direct lending over the last two years as the shift away from traditional bank lending continues. However, at the same time, we have seen investors become more selective and sophisticated, with a flight to quality managers and far greater emphasis on performance and experience in deploying capital.”
ICG also reported results for the six months to September, with fund management company profits rising 30% to £44.3m.
Investment company profits however drifted down to £51.2m from £92.2m in the prior period, owing to lower investment income.
Total assets under management (AUM) rose 14% to stand at €27.2bn on 31 March 2017, with ICG citing growing momentum across its European capital markets strategies.