ICG doubles secondaries firepower in final close

The firm's strategic equity unit has held the final close on its third fund, which is already 20% invested.

Intermediate Capital Group‘s complex secondaries unit has held the final close on its latest fund, raising twice the amount it did for its predecessor vehicle.

The London-headquartered firm’s Strategic Equity business collected $2.4 billion for ICG Strategic Equity Fund III, according to an earnings statement on Thursday. The fund closed in January and raised around $400 million in the third quarter of last year.

The figure includes $200 million of ICG’s commitment.

“We are excited by the growth of our marketplace and believe that ICGSE III’s scale, together with the expansion of our team to 16 dedicated investment professionals, will enable us to continue our selective execution of differentiated, complex transactions on a global basis and derive significant value from them for our investors,” Andrew Hawkins, ICG’s head of private equity solutions, said in a separate statement about the fund close.

Fund III was 20 percent invested as of the end of December across two assets, the statement noted.

Secondaries Investor reported in April 2018 that ICG was seeking $1.6 billion for Fund III.

Predecessor fund ICG Strategic Secondaries Fund II raised $1.1 billion in March 2017, according to Secondaries Investor data.

“Demand for ICG’s strategies remains high given both our strong investment performance and continued underlying demand for alternative assets,” chief executive Benoît Durteste said in the statement. “The third vintage of our strategic equity strategy has benefited from this demand, closing with significantly higher AUM and higher average fee rates than the previous vintage.”

ICG’s strategic equity team added seven team members last year, according to the statement.

The firm has been bulking up its teams in recent months. In November, it appointed Unigestion‘s Vivien Blossier as head of European secondaries investments in its private equity funds investments team – the unit that manages the £782.6 million ($1 billion; €924 million) ICG Enterprise Trust.

Oliver Gardey, who was Pomona Capital’s head of European operations, joined ICG late last year to lead the Enterprise Trust’s investment team. He replaced Emma Osborne, who moved to a senior advisory role.

ICG’s total asset under management grew 4 percent between 30 September and 31 December with to €42.6 billion. The firm raised €1.6 billion in the third quarter.

– This story was updated to show Fund III raised $2.4 billion, including $200 million of capital from ICG.