ICP.L Share News (ICP)

* AUM up 39 percent on year on strong demand in Europe

* A record 6.4 bln euros raised during the year

* Plans to return 300 mln stg as special dividend (Adds details, quote)

By Nishant Kumar

May 20 (Reuters) - Intermediate Capital Group Plc said assets under management rose to a record 18 billion euros($19.9 billion) at end-March, driven by strong demand forhigher-yielding assets in Europe, boosting its shares.

A 39 percent surge in assets from the prior year included arecord 6.4 billion euros of new money raised by the firm, whichspecialises in providing mezzanine finance, private debt andleveraged credit.

"Strong demand for European investment opportunities thatcarry attractive yields and the improving economic climate inEurope have driven a significant part of both our fundraisingand our investing success," Chief Executive Christophe Evainsaid in a statement on Wednesday.

The firm's European mezzanine, senior debt and UK realestate funds accounted for 48 percent of the total money raisedduring the year.

The group reported a 9 percent jump in profit before tax to178.5 million pounds and said it planned to return 300 millionpounds to shareholders in the form of a special dividend for2015.

Jefferies International analyst Phil Dobbin said he expectedeven more to be returned in the coming months.

"We feel this leaves room for a further return, and in themeantime the company has the ability to drive growth in asupportive fund raising environment," Dobbin, who rates thestock as "buy", wrote.

At 0725 GMT, its shares were up 4.6 percent, the second bestperformer on the FTSE Mid 250 Index, which traded down0.2 percent.

The company said third-party fee earning assets undermanagement rose 39 percent to 12.3 billion euros and its finalordinary dividend was up 4.9 percent to 15.1 pence per share,boosting its total ordinary dividends in year to 22 pence pershare. ($1 = 0.9035 euros) (Editing by Simon Jessop)