ICG: Q1 Trading Statement for the three months ended 30 June 2022

	21 July 2022 Q1 Trading Statement for the three months ended 30 June 2022
	Resilient business performance; fundraising of $4.5bn
	Highlights Fundraising of $4.5bn during the quarter Total AUM of $71.3bn, an increase on a constant-currency basis of 3% in the quarter and 19% in the last twelve months Third-party fee-earning AUM of $58.8bn, an increase on a constant-currency basis of 5% in the quarter and 27% in the last twelve months Europe VIII total fund size currently €7.8bn, materially above original target size of €7.0bn and 1.8x more third-party AUM than Europe VII. Fundraising largely complete, final close expected by end of July Final closes held for Strategic Equity IV ($4.2bn total fund size, 2.4x more third-party AUM than Strategic Equity III) and Asia Pacific IV ($1.1bn total fund size, 1.8x more third-party AUM than Asia Pacific III) Fund valuations in-line with 31 March 2022, reflecting ICG's focus on structuring transactions for downside protection and the continued strong operational performance of underlying portfolio companies offsetting valuation pressures Strong balance sheet, with total available liquidity of £1.4bn at 30 June 2022

	Benoît Durteste
	CEO and CIO
	The breadth of ICG’s strategies and our firm-wide focus on downside protection are powerful characteristics of our business, especially in the current environment. We focus on investing in resilient companies with strong market positions and are able to provide them with flexible capital in the form most appropriate to their needs, from full equity buyouts to senior debt. In doing so, we help our clients achieve their investment objectives in private markets through economic cycles. We remained active in the quarter. Fundraising was robust, including holding successful final closes for Strategic Equity IV and Asia Pacific IV. As anticipated, deployment and realisation levels across the market were lower than in previous quarters and in this context we continued to execute a number of transactions across all our asset classes. Our pipeline remains constructive, particularly within direct lending (SDP) where we are seeing a growing set of future deployment opportunities. As a firm we continued executing on our strategic agenda to reinforce our long-term growth trajectory, including selectively building out our marketing and client relations team and onboarding a real estate equity team in Asia. The management fee-centric nature of our fund management company gives us confidence in the resilience of our business through periods of uncertainty, and our performance remains in-line with the outlook we recently gave in our full year results.

PERFORMANCE OVERVIEW

		Last three months		Last twelve months
	30 June 2022	31 March 2022	Change %	30 June 2021	Change %
Total AUM	$71,284m	$72,051m	3%1	$65,237m	19%1
Third-party AUM	$68,246m	$68,468m	4%1	$61,545m	21%1
Fee-earning AUM	$58,767m	$58,335m	5%1	$50,626m	27%1

	1 Apr 2022 - 30 June 2022	1 Apr 2021 - 30 June 2021	Change %
Fundraising during period	$4,518m	$8,159m	(45)%
Realisations during period2	$1,998m	$3,710m	(46)%
Deployment during period3	$2,751m	$4,531m	(39)%

¹ On a constant currency basis; ² Realisations of third-party AUM; ³ From direct investment funds

Last five years CAGR

	30 June 2017 - 30 June 2022
Total AUM	23%
Third-party fee-earning AUM	25%

COMPANY TIMETABLE

Payment of ordinary dividend: 5 August 2022

Half year results announcement: 17 November 2022

ENQUIRIES

Shareholders / analysts
Chris Hunt, Head of Shareholder Relations, ICG	+44(0)20 3545 2020
Media
Fiona Laffan, Global Head of Corporate Affairs, ICG	+44(0)20 3545 1510

ABOUT ICG

ICG provides flexible capital solutions to help companies develop and grow. We are a global alternative asset manager with over 30 years' history, managing $71bn of assets and investing across the capital structure. We operate across four asset classes: Structured and Private Equity, Private Debt, Real Assets, and Credit.

We develop long-term relationships with our business partners to deliver value for shareholders, clients and employees, and use our position of influence to benefit the environment and society. We are committed to achieving net zero across our operations and relevant investments by 2040.

ICG is listed on the London Stock Exchange (ticker symbol: ICP). Further details are available at www.icgam.com. You can follow ICG on LinkedIn.

PERIOD IN REVIEW

AUM

• Total AUM of $71.3bn; balance sheet investment portfolio represented 4.2% of total AUM
• Third-party AUM of $68.2bn and third-party fee-earning AUM of $58.8bn
• Movements in FX, largely the strengthening during the period of the US dollar against the euro and GBP, impacted third-party AUM by $(2.7)bn
• At 30 June 2022 we had $18.5bn of third-party AUM available to deploy in new investments, $9.5bn of which is not yet paying fees but will do so when the capital is invested or enters its investment period
  

Third-party AUM

Third-party AUM ($m)	Structured and Private Equity	Private Debt	Real Assets	Credit	Total third-party AUM
At 1 April 2022	22,507	19,806	8,028	18,127	68,468
Additions	2,814	488	483	940	4,725
Realisations	(595)	(349)	(323)	(731)	(1,998)
FX and other	(737)	(829)	(393)	(990)	(2,949)
At 30 June 2022	23,989	19,116	7,795	17,346	68,246
Change $m	1,482	(690)	(233)	(781)	(222)
Change %	7%	(3)%	(3)%	(4)%	—%
Change % (constant exchange rate)¹	11%	1%	4%	(1)%	4%

             Note: Additions to third-party AUM include $207m of step-ups, which are not included within our fundraising totals

Third-party fee-earning AUM

Third-party fee-earning AUM ($m)	Structured and Private Equity	Private Debt	Real Assets	Credit	Total third-party fee-earning AUM
At 1 April 2022	22,100	11,953	6,873	17,409	58,335
Funds raised: fees on committed capital	2,658	—	—	—	2,658
Deployment of funds: fees on invested capital	219	1,309	576	940	3,044
Total additions	2,877	1,309	576	940	5,702
Realisations	(595)	(1,194)	(323)	(531)	(2,643)
FX and other	(745)	(444)	(525)	(913)	(2,627)
At 30 June 2022	23,637	11,624	6,601	16,905	58,767
Change $m	1,537	(329)	(272)	(504)	432
Change %	7%	(3)%	(4)%	(3)%	1%
Change % (constant exchange rate)¹	12%	1%	3%	—%	5%

Fundraising

• Fundraising of $4.5bn during the quarter, including Strategic Equity IV ($1.2bn), Europe VIII ($0.9bn) and Asia Pacific IV ($0.5bn)
• We also raised for SDP ($0.5bn, across SDP V and SMAs), Sale and Leaseback II ($0.3bn), Real Estate debt ($0.2bn) and LP Secondaries I ($0.1bn), as well as issuing a new CLO in each of Europe and the US ($0.7bn in aggregate) and raising $0.2bn in liquid credit

Realisations

• Realisations of $2.0bn during the quarter within third-party AUM and $2.6bn within third-party fee-earning AUM (of which $2.1bn was from direct investment funds)
• The difference between the two is due to Private Debt, in which we realised $0.9bn of AUM that we can re-deploy and on which we will once again earn fees when it is invested

Deployment

• We deployed $2.8bn of capital during the quarter on behalf of our direct investment funds as follows:
  
  

$m	Q1 FY23
Structured and Private Equity	760
Private Debt	1,309
Real Assets	682
Group	2,751

Balance sheet investment portfolio

• At 30 June 2022 the balance investment portfolio (including warehoused investments) was valued at £2.8bn
• Portfolio company performance remains strong and valuations of our closed-ended funds in line with 31 March 2022. We continue to monitor potential valuation impacts arising from developments in the broader macro-economic environment
• The breakdown of the balance sheet investment portfolio at 30 June 2022 was as follows:
  
  

£m	30 June 2022	31 March 2022
Structured and Private Equity	1,770	1,826
Private Debt	156	149
Real Assets	327	305
Credit	409	447
Balance sheet investment portfolio (excluding warehoused investments)	2,662	2,727
Warehoused investments	177	95
Balance sheet investment portfolio (including warehoused investments)	2,839	2,822

Liquidity

• At 30 June 2022, the Group had total available liquidity of £1,386m
• During the period £32.5m of US Private Placements with an annual coupon of 4.95% matured and were repaid

BOARD

• As previously announced, Matthew Lester became Chair of the Audit Committee effective from 1 July 2022, replacing Michael (Rusty) Nelligan who has chaired the Audit Committee since September 2016. Rusty continues to be a member of the Board and a member of the Audit Committee

OTHER

This results statement has been prepared solely to provide additional information to shareholders and meets the relevant requirements of the UK Listing Authority’s Disclosure and Transparency Rules. The results statement should not be relied on by any other party or for any other purpose.

This results statement may contain forward-looking statements. These statements have been made by the Directors in good faith based on the information available to them up to the time of their approval of this report and should be treated with caution due to the inherent uncertainties, including both economic and business-risk factors, underlying such forward-looking information.

Foreign exchange rates

The following foreign exchange rates have been used throughout this review:

	Average rate for Q1 FY23	Average rate for FY22	30 June 2022 period end	31 March 2022 year end
GBP:EUR	1.1760	1.1755	1.1617	1.1876
GBP:USD	1.2452	1.3626	1.2178	1.3138
EUR:USD	1.0588	1.1595	1.0483	1.1063

At 30 June 2022, our third-party AUM was $68.2m. If GBP:USD had been by 5% higher (1.2787) our reported third-party AUM would have been $441m higher. If EUR:USD had been 5% higher (1.1007) our reported third-party AUM would have been $1,926m higher.

Where noted, this review presents changes in AUM on a constant-exchange-rate basis. For the purposes of these calculations, opening AUM numbers have been translated from their underlying fund currencies to USD at the respective period-end exchange rates. This has then been compared to the AUM at the period end to arrive at the change on a constant-exchange-rate basis.

GLOSSARY

Term		Short Form		Definition
Additions (of AUM)				Within third-party AUM: the aggregate of new commitments of capital by clients, and calls of capital from funds that have previously had a step-down and are therefore reflected in third-party AUM on a net invested capital basis. Within third-party fee-earning AUM: the aggregate of new commitments of capital by clients that pay fees on committed capital, and deployment of capital that charges fees on invested capital (including calls of capital from funds that have previously had a step-down and therefore charge fees on a net invested capital basis).
Balance sheet investment portfolio				Balance sheet investments made alongside funds, or where the balance sheet is seeding investments for new strategies. The balance sheet investment portfolio is revalued at each reporting date.
Close (of a fund)				A stage in fundraising whereby a fund is able to release or draw down the capital contractually committed at that date.
Closed-end fund				A fund where investor’s commitments are fixed for the duration of the fund and the fund has a defined investment period.
Co-investment		Co-invest		A direct investment made alongside or in a fund taking a pro-rata share of all instruments.
Collateralised Loan Obligation		CLO		CLO is a type of investment grade security backed by a pool of loans.
Close				A stage in fundraising whereby a fund is able to release or draw down the capital contractually committed at that date.
Deployment				Investment of AUM on behalf of our direct investment funds.
Direct investment funds				Funds which invest in self-originated transactions for which there is a low volume, illiquid secondary market. Specifically, this excludes our Credit asset class as well as ICG Enterprise Trust (within Structured and Private Equity).
Fund				A pool of third-party capital allocated to a specific investment strategy or strategies, managed by ICG plc or its affiliates.
Liquid assets				Asset classes with an active, established market in which assets may be readily bought and sold.
Open-ended fund				A fund which remains open to new commitments and where an investor’s commitment may be redeemed with appropriate notice.
Realisation				The return of invested capital in the form of principal, rolled-up interest and/or capital gain.
Realisations				Reductions in AUM due to capital being returned to investors and / or no longer able to be called by the fund, and the reduction in AUM due to step-downs.
Recycle				Where the fund is able to re-invest capital that has previously been invested and then realised. This is typically only within a defined period during the fund's investment period and is generally subject to certain requirements.
Separately Managed Account		SMA		Third-party capital committed by a single investor allocated to a specific investment strategy or strategies, managed by ICG plc or its affiliates.
EU Sustainable Finance Disclosure Regulation		SFDR		A set of EU rules that aim to make the sustainability profile of funds more comparable. Funds and mandates can be classified into one of three categories, as laid out by Articles 6, 8 and 9 of the SFDR.
Step-down / step-up				A reduction in AUM resulting from the end of the investment period in an existing fund or when a subsequent fund starts to invest. Funds that charge fees on committed capital during the investment period will normally shift to charging fees on net invested capital post step-down. There is generally the ability to continue to call further capital from funds that have had a step-down in certain circumstances. In this instance, fees will be earned on that invested capital and it will be added to AUM through Additions and this is termed as step-up.
Total AUM				The aggregate of the Third Party AUM and the Balance Sheet investment portfolio (excluding warehoused investments).
Total fund size				The total AUM within a fund.
Warehoused investments				Investments within the balance sheet investment portfolio that the Group anticipates transferring to a fund in due course, typically made where the Group is seeding new strategies in anticipation of raising a fund.

Attachment

• ICG_Q1_FY23_Trading statement