Intermediate Capital "disappointed" with loss

Intermediate Capital, a leading investor in and manager of buyout debt, said it was "disappointed" to post a loss for the year as net provisions surged.But shares in the group rose on hopes that the worst may be over, while funds under management rose 16% to £8.5bn due to positive currency impact and additional funds raised.Pre-tax losses came in at £67m against £229.5m profit last year due to net provisions of £273m - £266m of gross provisions for portfolio companies, £36m of provisions for equity stakes in CDOs and £29m recoveries. Gains on investments of £31m were substantially below the gains of £135m last year because of the very low level of early repayments."There has been extraordinary turbulence in the financial markets this year, which has created a challenging environment for our business, our private equity partners, and the companies in which we invest," said the group."Nevertheless, the majority of the companies in our portfolio continue to perform satisfactorily, reflecting their defensive bias. Furthermore, our fund management franchise remains strong and as a consequence we have been able to raise €1 billion of new funds," it added.