Intermediate Capital Group (LON:ICG), now known as ICG Plc after shareholder approval, stands as a prominent global alternative asset manager, boasting a substantial portfolio and a track record of strategic growth.
With assets under management (AUM) reaching $112 billion by March 2025, ICG operates across various investment strategies, including private debt, private equity, and real assets. The company's core business revolves around providing capital solutions to mid-market companies, facilitating their expansion, acquisitions, and restructurings.
Intermediate Capital puts a focus on bespoke financing solutions has allowed ICG to cultivate strong relationships with its clients and generate consistent returns for its investors. ICG's global footprint spans multiple continents, with a presence in key financial centers, enabling it to tap into diverse investment opportunities and manage risk effectively. The company's expertise lies in sourcing, structuring, and managing investments across the capital structure, offering a comprehensive suite of services to its clients.
The current CEO of Intermediate Capital Group is Benoit Durteste, appointed in 2017. Intermediate Capital Group is listed on the London Stock Exchange, trading under the ticker symbol ICG.
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Intermediate Capital Group Share Price
The past year has been a period of both achievement and challenge for ICG, marked by significant financial milestones and fluctuating market sentiment. The company's robust financial performance, highlighted by a 14% increase in AUM and a 19% rise in management fees, underscores its ability to attract capital and generate revenue in a competitive environment.
The declaration of a total dividend of 83p per share, the fifteenth consecutive annual increase, reflects ICG's commitment to returning value to its shareholders. This consistent dividend growth, coupled with a healthy operating cash flow, has made ICG an attractive investment for income-seeking investors. However, the company's stock performance has been volatile, experiencing both highs and lows, reflecting broader market uncertainties and specific concerns about investment performance.
P/E Ratio Average Over the Last Ten Years: 13.26
Intermediate Capital Group EPS and Revenue Breakdown 2020-2023
| ICG | Annual EPS | Annual Revenue |
|---|---|---|
| 2020 | £0.25 | £0.31 billion |
| 2021 | £0.67 | £0.92 billion |
| 2022 | £0.76 | £0.31 billion |
| 2023 | £0.59 | £1.00 billion |
| 2024 | – | £931.90 million |
Finance Industry Comparison
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Intermediate Capital Group Share Price Forecast
Overall, 13 analysts have assigned Intermediate Capital Group shares a Buy rating and 3 assigned it a Hold rating.
?A View From The Bears:
- Strong AUM Growth: Continued growth in assets under management, driven by successful fundraising and investment performance, will lead to higher management fees and profitability.
- Strategic Investments: Successful deployment of capital into high-yielding investment opportunities will drive strong returns and enhance shareholder value.
- Dividend Growth: Continued dividend growth, supported by strong cash flow generation, will attract income-seeking investors and boost the stock price.
- Favourable Market Conditions: Positive market conditions, including low interest rates and strong economic growth, will support the performance of ICG's investments.
? AView From The Bulls:
- Market Volatility: Increased market volatility and economic uncertainty could negatively impact investment performance and fundraising efforts.
- Investment Losses: Significant investment losses could erode AUM and reduce profitability, leading to a decline in the stock price.
- Increased Competition: Increased competition from other alternative asset managers could put pressure on management fees and investment returns.
- Regulatory Changes: Changes in regulations governing alternative asset management could increase compliance costs and reduce profitability.
Average Analyst Consensus 12-Month Price Target: £2,550.25
Our View: Intermediate Capital Group (LON:ICP) presents a compelling investment opportunity, characterised by strong AUM growth, a commitment to shareholder returns, and a diversified investment strategy. However, investors should be aware of the inherent risks associated with alternative asset management, including market volatility, investment performance, and increased competition.
The company's recent financial performance, while generally positive, has been marked by some volatility, highlighting the importance of careful analysis and risk management. As ICG transitions to ICG Plc and navigates the evolving landscape of alternative asset management, its ability to adapt to changing market conditions and deliver consistent returns will be key to its long-term success. Investors should carefully weigh the potential risks and rewards before making an investment decision.
