ICG holds first close on Strategic Secondaries II

The mezzanine powerhouse has completed at least three deals from its latest secondaries fund which focuses on restructurings.

Intermediate Capital Group (ICG) has held a first close on its latest secondaries fund on over a third of its target and completed three deals from the vehicle, according to the firm’s annual report.

The London-headquartered mezzanine powerhouse had raised $367 million for Strategic Secondaries Fund II as of 31 March, according to an investor presentation document on the firm’s website. This includes $200 million committed by the firm itself.

New investors were able to access opportunities in underperforming funds through value-added secondaries investments, ICG chief executive Christophe Evain wrote in the report.

“Our strategic secondaries strategy is designed specifically to address this opportunity and has developed a niche position in the highly complex and structured part of the market where we have abundant opportunities to invest,” he wrote.

Strategic Secondaries Fund II, which has a target of $1 billion and will focus on restructurings, was expected to hold its first close by the end of February, Secondaries Investor previously reported.

The fund has a 1.15 percent target management fee on committed capital and a 1.75x target money multiple, according to the investor document. Over half of the fund focuses on Canada and the remainder on the US.

By sector, the fund’s biggest investments focus on machinery (non-agricultural), followed by “other”, then insurance, and healthcare, education and childcare.

Of the capital raised at 31 March for the fund, 41 percent was already invested, the document notes.

ICG expects to hold a further close on the fund shortly, Evain wrote.

ICG launched its secondaries platform at the end of 2014, hiring a specialist team from NewGlobe Capital after it partnered with NewGlobe and Goldman Sachs on the $860 million restructuring of US private equity fund Diamond Castle IV.