Intermediate Capital performs ahead of expectations, cautious of macro

(Alliance News) - Analysts at Jefferies on Thursday said that Intermediate Capital Group PLC had performed ahead of its expectations, as the firm saw assets under management increase over the quarter.

The London-based asset manager reported assets under management at December 31 of USD74.5 billion, up 8.8% from USD68.5 billion at September 30. Fee-earning assets were recorded at USD60.9 billion, up 6.3% from USD57.3 billion over the same period.

The group deployed USD4.1 billion over the quarter, amounting to almost half the nine-month total of USD9.1 billion, and a decidedly "good quarterly performance", Jefferies analysts said.

Fundraising was similarly "robust" at USD2.8 billion, versus Jefferies' prediction of USD3.4 billion for the second half.

For the last nine months, the firm reported total funds raised of USD8.5 billion, adding that it was on track to meet its accelerated fundraising target of USD40 billion by March 31, 2024.

Analysts at Jefferies said this was "eminently achievable", raising its recommendation to 'buy'.

Shore Capital was a little more hesitant, but affirmed a "cautiously confident" outlook despite the "uncertain macro", keeping its recommendation at 'hold'.

It did however note that the company's assets under management of nearly USD75 million reflected "impressive 23% compound growth over the last five years".

During the quarter, Intermediate Capital began the marketing for various new funds, including Europe Mid-Market II, Infrastructure II and Life Sciences I.

It had available liquidity of GBP1.3 billion at December 31.

Intermediate Capital shares closed 7.2% higher at 1,390.00 pence each in London on Thursday. Over the past 12-months, the stock has fallen 26%.

By Holly Beveridge; Alliance News reporter

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