Slide 1: Delivering growth through cycles
Delivering growth through cycles Results for twelve months to 31 March 2023 25 May 2023 All data as at 31 March 2023 and on an APM basis unless otherwise stated; see RNS for more details PRIVATE AND CONFIDENTIAL
Slide 2: Agenda
Agenda • Business performance • Financial results Benoît Durteste CEO and CIO Questions Vijay Bharadia CFOO David Bicarregui CFO-designate PRIVATE AND CONFIDENTIAL 1
Slide 3: Delivering strategically and financially
Delivering strategically and financially Significant long-term growth: 5-year annualised growth rates1 Fee-earning AUM Fee income FMC PBT 20% 25% 27% Scale and breadth make us increasingly relevant to a widening pool of clients Management fees up 23%, record levels of fee-earning AUM and FMC profita
Slide 4: Business performance
Business performance PRIVATE AND CONFIDENTIAL
Slide 5: FY23 performance: management fees up 23%
FY23 performance: management fees up 23% AUM BUSINESS ACTIVITY Total AUM Fee-earning AUM Fund performance $33bn since FY21 Fundraising $10.2bn $80bn $63bn Strong portfolio performance reflected in fund valuations 14%2 YoY 10%2 YoY Realisations1 Deployment1 $5.3bn $10.5bn SUSTAINABILITY AND PEOPLE FI
Slide 6: A busy year for ICG
A busy year for ICG “GROWING UP” “GROWING OUT” Flagship funds Subsequent vintages First time funds Seed investments New teams Final closes Launched Launched • LP Secondaries • Infrastructure Asia • Europe VIII • Europe Mid-Market II • LP Secondaries I • Real Estate • Real Estate Opportunistic Opport
Slide 7: On track to achieve accelerated fundraising target
On track to achieve accelerated fundraising target FUNDRAISING OVER TIME FOUR STRATEGIES RAISED >$1BN IN FY23 ~$33bn Senior Debt Partners $3.3bn 24 months Strategic Equity $1.5bn $22.5bn Europe VIII $1.2bn CLOs $1.2bn Rolling four-year average: $13.7bn $11.2bn $11.3bn $10.6bn $10.2bn $9.6bn $6.9bn $
Slide 8: Expanding our client franchise
Expanding our client franchise 1 GROWTH DIVERSIFICATION 15% 27% 37% 33% +10% 647 586 Geography Type 331 22% 11% 14% 15% 26% EMEA (excl. UK and Ireland) Pension funds Insurance companies FY18 FY22 FY23 Americas Asset managers Family office Asia Pacific UK and Ireland Other 5% 9% 8% Strength of brand
Slide 9: Identifying attractive opportunities
Identifying attractive opportunities DEPLOYMENT1 REALISATIONS1 1 $15.0bn $10.5bn $9.0bn average $7.2bn $6.4bn $6.2bn $6.2bn $5.3bn $4.3bn average $3.7bn $3.6bn $2.5bn FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 $21bn of dry powder 1 Direct investment funds, fee-earning AUM. Key: Structured and
Slide 10: AUM growth continuing
AUM growth continuing FEE-EARNING AUM DEVELOPMENT FY18 – FY23 CAGR 20% Total AUM of $80bn +$7.2bn +$4.2bn $62.8bn $58.3bn - $(6.9)bn $46.8bn +8% $39.6bn (+10% CCY) $33.2bn $25.8bn FY18 FY19 FY20 FY21 FY22 Fundraising Deployment Realisations FX and other FY23 Structured and Private Equity Private Deb
Slide 11: Portfolio companies’ operational performance
Portfolio companies’ operational performance 1 LTM EBITDA GROWTH NET SENIOR LEVERAGE2 European Corporate 13% 4.1x Strategic Equity 17% 4.7x Senior Debt Partners 20% 5.2x Infrastructure 24% 39% 1 Weighted-average by unrealised by for European Corporate and Infrastructure adjusted for platform acquisi
Slide 12: Funds generating value for clients
Funds generating value for clients LIFE-TO-DATE IRR GROSS MOIC 42% DPI Europe VI (2018) Europe VII (2021) 1.5x 1.7x 1.7x 1.8x 2.0x 2.1x 2.1x 2.2x European 18%1 171% DPI Corporate Sep-21 Mar-22 Sep-22 Mar-23 Sep-21 Mar-22 Sep-22 Mar-23 Strategic Equity III (2021) Strategic Equity IV (still investing)
Slide 13: Delivering growth through cycles
Delivering growth through cycles Diversification Enabling fundraising and investment activity to continue across economic conditions Increasing number of strategies are having a meaningful impact, driving record management fee income Scale and FMC profits Investment ICG DNA of flexible, structured a
Slide 14: Financial results
Financial results PRIVATE AND CONFIDENTIAL
Slide 15: Key financial results at a glance
Key financial results at a glance FEE-EARNING AUM THIRD-PARTY FEE INCOME FMC PBT NAV PER SHARE $63bn £501m £311m 694p 10% YoY1 12% YoY 9% YoY FY22: 696p ~96% management fees, Operating margin of 57.5% Strong capitalisation Locked-in capital primarily visible revenue stream generating fees on support
Slide 16: Fee model provides long-term visibility
Fee model provides long-term visibility FEE GENERATION POTENTIAL $62.8bn $14.7bn fee-earning AUM not-yet-earning fees AUM ~£459m Potential annual ~£116m management fees1 Potential annual management fees2 90bps fee rate + Performance fee potential Management fees generally on committed or invested co
Slide 17: Impressive fee income growth
Impressive fee income growth FY18 – FY23 CAGR 25% +12% (+7% CCY) £501m £449m £334m £278m £220m £167m FY18 FY19 FY20 FY21 FY22 FY23 Structured and Private equity Private Debt Real Assets Credit Management fees up 23% compared to FY22 PRIVATE AND CONFIDENTIAL Past performance is not a reliable indicat
Slide 18: Strong operating margin while investing for the future
Strong operating margin while investing for the future FMC OPERATING MARGIN GROUP PERMANENT HEADCOUNT FY18 – FY23 CAGR 14% FY23 FY22 Employee costs £177m £163m 582 Administrative costs £46m £55m 525 470 Depreciation and amortisation £6m £8m 408 Total operating expenses £229m £227m 336 297 Operating
Slide 19: Growing FMC profits
Growing FMC profits FMC PBT FY18 – FY23 CAGR 27% £52m £1m £311m £286m £(27)m £(3)m +9% (+14% CCY1) £202m £183m £144m £95m FY18 FY19 FY20 FY21 FY22 Third-party fee Movement in FV Other Expenses FY23 income of FX derivatives income 1 Excluding changes in fair value of derivatives PRIVATE AND CONFIDENT
Slide 20: Capitalisation and net asset value
Capitalisation and net asset value LIQUIDITY PROFILE TERM DEBT PROFILE CREDIT RATINGS 100% undrawn 100% fixed rate £550m £550m Fitch S&P Cash and cash equivalents + RCF (undrawn) 3.17% 4.1 years BBB BBB Weighted average Weighted average Stable Stable interest rate maturity £1,100m total liquidity Up
Slide 21: Balance sheet investment portfolio
Balance sheet investment portfolio MOVEMENT IN BALANCE SHEET INVESTMENT PORTFOLIO EXECUTING OUR BALANCE SHEET PRIORITIES £108m £2,902m £2,822m £100m Aligning interests • £452m invested alongside clients in fund investments Seed with our clients investments • Balance sheet investment portfolio 4.0% o
Slide 22: Net investment return
Net investment return FIVE YEAR AVERAGE 5YR AVG. 19% 18% Structured and 16% European Corporate and Strategic Private Equity NIR Equity driving positive returns 13% 11.2% average 11% SDP portfolio performing resiliently, 4% Private Debt strong returns in NAPD NIR 2% FY19 FY20 FY21 FY22 FY23 Gain in I
Slide 23: Re-confirming financial guidance
Re-confirming financial guidance FUNDRAISING PERFORMANCE FEES FMC OPERATING NET INVESTMENT MARGIN RETURNS At least $40bn Performance fees to In excess of 50% Low double-digit fundraising in represent 10 - 15% of percentage points over aggregate between 1 third-party fee income the medium term April
Slide 24: To conclude
To conclude PRIVATE AND CONFIDENTIAL
Slide 25: Looking ahead
Looking ahead • Investment landscape and client appetite shifting to our areas of expertise and scale • Confident in achieving accelerated fundraising target of $40bn cumulatively FY22 – FY24 FY24 • Marketing a number of first-time and follow-on vintages during the year • Continuing to invest in our
Slide 26: Increasing profitability
We are still at the early stages of our journey: multiple levers of future profitable growth MULTIPLE J-CURVES PROVIDE FUTURE DRIVERS OF DIVERSIFIED GROWTH AND PROFITABILITY • Reduced capital intensity Flagship strategies • FRE-centric value for shareholders • High margin and cash European Corporate
Slide 27: Introducing our new CFO
Introducing our new CFO DAVID BICARREGUI • Previously Partner at Goldman Sachs, 25 years experience • Held various senior roles, most recently as Chief Financial Officer of Goldman Sachs International Bank • Helped lead growth of Goldman Sachs International Bank to become the largest of the firm’s b
Slide 28: Questions?
Questions? PRIVATE AND CONFIDENTIAL
Slide 29: About ICG
About ICG ICG is a global alternative asset manager specialising in providing OUR VISION OUR PURPOSE flexible solutions across the capital structure. We manage funds on behalf of our global client base across four asset classes: Structured and Private Equity, Private Debt, Real Assets, and Credit. W
Slide 30: Disclaimer
Disclaimer The materials being provided to you are intended only for informational purposes and convenient reference and may not be relied upon for any purpose. This information is not intended to provide, and should not be relied upon, for accounting, legal, tax advice or investment recommendations