ICG (LSE:ICG) shares slipped 1.8% on Thursday after the alternative asset manager reported full-year 2026 results that beat expectations in its fund management operations but disappointed on investment returns.
The group’s Fund Management Company division delivered pre-tax profit that was 26% ahead of company-compiled analyst consensus. The stronger performance was driven by management fees that exceeded forecasts by 12%, while operating expenses came in 9% lower than expected. ICG said management fee growth benefited from around £51.4 million in catch-up fees during the year, alongside a continued shift toward higher-return investment strategies.
However, performance from the Investment Company segment fell short of expectations after a 2% negative return in the debt portfolio weighed on net investment returns. The decline was mainly linked to mark-to-market movements within collateralised loan obligations, although other asset classes generated annual returns of between 5% and 8%.
Fee-paying assets under management rose to US$86.5 billion, around 2% ahead of analyst consensus, supported by fundraising of US$7.6 billion during the period. Across fiscal year 2025, the company raised roughly US$40 billion, equivalent to around 73% of its target to raise at least US$55 billion between fiscal years 2025 and 2028.
Much of the latest fundraising activity was driven by Europe IX, which is expected to become ICG’s first commingled investment fund to exceed €10 billion in size. Fourth-quarter fundraising alone totalled US$3.2 billion.
The company also updated its medium-term financial guidance to include expectations for expansion in fee-related earnings margins, excluding catch-up fees. ICG maintained its target of raising at least US$55 billion over the four-year period ending March 2028, while reiterating guidance for performance fees to contribute around 10% to 20% of total fee income.
Management indicated that fundraising activity in fiscal year 2027 is expected to come in below the levels achieved in fiscal year 2026.
More about ICG
ICG is a global alternative asset management firm specialising in private debt, credit and structured capital strategies. The company manages investments across corporate, real asset and secondary markets for institutional clients worldwide, generating revenue through management fees, investment returns and performance-related income.
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