Intermediate Capital Group, the specialist investment firm and asset manager, said it lent more than it received in repayments in the first half of its financial year.

The provider of mezzanine finance and leveraged credit said its Investment Company unit saw realisations in the April to September period run at a lower level than in the corresponding period of last year.

A total of £70m of principal repayments have been received in the April to September period, while £12m of rolled up interest has been crystallised and there have been realised capital gains of £10m.

A number of Intermediate Capital's investments are currently in active exit processes but visibility on timing remains unclear as transactions are often delayed in the current volatile environment. "This will have a positive impact on our overall return on investments as our mezzanine financing runs for longer than historical averages, but it leads to low levels of realisations in the short term," the firm explained.

The Investment Company unit deployed £140m in the reporting period on five new assets. Undrawn debt facilities at September 30th will be £440m, the group revealed.

The performance of the Investment Company's investment portfolio remains "solid" and provisions for the full year should be broadly in line with market expectations. However, provisions for the first half are expected to be higher than in the second half as two assets are currently undergoing restructuring.

On the Fund Management side of the business, assets under management as at September 27th stood at €12bn, up from €11.8bn as at July 9th. The increase was largely due to additional investments to the ICG Europe Fund V. This fund has received commitments of €1.5bn to date and is on track to reach the group's €2bn target in the fourth quarter of 2012.

"We have also launched our Total Credit Fund which combines investments in high yield bonds, senior loans and CLO [collateralised loan obligation] debt. The fund is off to a strong start with a 4% return since inception on July 13th," the group said.

JH

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