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Intermediate Capital increases annual fundraising target
Intermediate Capital increased its annual fundraising target by 50% to capitalise on an increase in the number and size of strategies available to the asset manager.
Reporting on third-quarter trading, Intermediate said it now expected to attract an average of 6bn (£5.2bn) a year in new funds each year for the next three years, up from an earlier target of 4bn.
ICG attracted 0.6m of new funds in the three months to the end of December. The company said the inflow was in line with expectations after it attracted a record 5.7bn in the first half.
The FTSE 250 company, founded in 1989, invests in private debt, credit and equity. It has boomed since the financial crisis as new lenders have stepped in to fill gaps left by banks and other traditional sources of capital for companies. ICG invests in those debts as well as providing direct loans. Its investors include pension funds and sovereign funds seeking higher returns with interest rates near zero.
Chief executive Benoit Durteste said: "I am delighted that the ongoing success of building specialist asset management strategies and the strength of our client relationships allow us to increase our fundraising target and fund management company operating margin target. Our 28-year track record has enabled us to capitalise on the long term investor trend towards alternative asset classes and establish ourselves as a leading specialist asset manager to institutional clients."
Intermediate's shares have risen by about 70% in the past year. They were up 1.7% to £11.78 at 11:02 GMT.