Annual fundraising hit a new record at Intermediate Capital Group (ICG), the mezzanine finance provider said on Tuesday.

Third party assets under management (AuM) climbed 8% to €10.7bn, while a record level of realisations left total AuM flat at €13.0bn.

The realisations generated £1.1bn of cash for its investment company.

However, while the investment portfolio remained broadly resilient, a smaller number of weaker assets continued to underperform, the group said, although these have been reducing in number.

Group profit before tax was up 11% at £158.7m compared to £142.6m a year earlier, while on an adjusted basis it totalled £175.1m, compared to £148.3m in the previous year, primarily due to a high level of exits from portfolio assets in the 2014 financial year.

The Fund Management Company delivered profit of £35m, down from £40.4m, while the investment company's profit totalled £140.1m, up from £107.9m.

Chief Executive Officer Christophe Evain, said: "ICG has delivered a good set of results, with steady overall growth in group profits up 11% and a strong increase in third party AUM at a time when assets have exited our portfolios at a record rate due to favourable market conditions.

"We continue to fund raise well and develop new opportunities for investors in line with our strategy to develop our third party fund management business.

"In light of ICG's strong financial discipline and balance sheet we are increasing our dividend by 5% for this year and announcing a share buyback programme of up to £100m as we seek to balance returns to shareholders and further investment in growing our fund management capabilities."

The share price declined 3.12% to 416.10p by 11:05.

NR

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