Business
Statement re strategy and board succession
Statement re strategy and board succession.
About this update from Icg Plc
[{"type":"text","content":"\n \n\n\n\n\nEmbargoed until 7.00am on\n\nTuesday 16 March 2010\n\n\n\n\n\n\n\n INTERMEDIATE CAPITAL GROUP PLC -\n STRATEGY UPDATE ON FUND MANAGEMENT BUSINESS\n AND BOARD SUCCESSION\n\n\n\n\nIntermediate Capital Group PLC (\"ICG\" or \"the Company\") today announces its\nstrategy to grow its fund management business and changes to the Board to\nsupport this growth.\n\n\nStrategy to grow the fund management business\n\nOver the past ten years, ICG has materially grown both its balance sheet funded\ninvestment portfolio and its third party fund management business generating\nstrong investment returns over the cycle and building a dependable fee income\nstream. As a result of this growth in assets under management, we currently\nmanage approximately €12 billion, comprising €3 billion of balance sheet\nportfolio investments and €9 billion of third party funds.\n\nChanges in the competitive landscape as a consequence of the recent banking\ncrisis and global recession have resulted in much improved investment\nopportunities for investors with access to capital. ICG's investment expertise\nand local network positions us well to take advantage of these opportunities.\n\nHowever the banking crisis has reduced the attractiveness of debt capital\navailable to businesses, thereby constraining the growth of ICG's balance sheet\nin the medium term. Therefore future growth in assets under management will be\nprimarily derived from growth in third party funds under management.\n\nIt is now our ambition to double assets under management over the next five\nyears through a greater focus on our fund management operation and enhanced\nmarketing capabilities. We aim to be a leading global alternative asset manager\nspecialising in mezzanine capital, growth capital, buyout debt and related asset\nclasses.\n\nInvestment expertise will continue to be the backbone of our operation and the\nCompany will maintain its core investment philosophy based on in-depth credit\nanalysis and stringent asset selection, underpinned by an extensive local\nnetwork of investment professionals.\n\nICG will continue to co-invest using its balance sheet alongside ICG's third\nparty funds and this will of course be an important contributor to group\nearnings.\n\nGiven the new strategic focus on growing the fund management business and the\nexpected increased co...