Investment manager ICG has reported an 18% increase in recurring fee-related earnings despite a decline in overall first-half profit, as institutional fundraising and growth in management fees were offset by lower performance-related income.
The London-listed group generated £199m in fee-related earnings during the six months ended 30 September 2026, compared with £168m in the equivalent period last year.
Management fees increased 12% to £374m, supported by growth in the amount of client capital generating recurring income.
However, adjusted pre-tax profit declined 18% to £287.3m from £351.6m, while statutory pre-tax profit fell to £291.2m from £354.1m.
ICG reported assets under management of $145bn at the end of September, with fee-earning assets reaching approximately $90bn.
The company has changed how it calculates total assets under management, introducing unrealised investment gains and losses into the reported figure.
That adjustment added approximately $16bn to total assets under management at the end of September. Earlier periods have not been restated, meaning the headline $145bn should not be compared directly with previous totals as a measure of organic growth.
The change does not affect fee-earning assets under management, which increased 9% year on year on a constant currency basis.
ICG raised $7.6bn from investors during the first half, with net additions to fee-earning assets reaching $4.7bn.
Its Europe IX fund completed fundraising at €12bn, which the company described as the largest structured capital fund raised globally, based on industry data from Preqin.
Recurring income grows despite lower performance fees —
ICG manages capital across private debt, structured capital, real assets, and private equity secondaries, with institutional clients including pension funds, insurers, and other long-term investors.
The business generates management fees from administering and investing client capital, while performance fees depend on investment returns and contractual conditions being satisfied.
Its latest results demonstrate the different behaviour of these income streams.
Performance fee income declined from £98m to £24m. However, the previous year’s figure included approximately £72m of one-off income relating to an earlier accounting transition.
Consequently, the headline decline overstates the reduction in underlying performance fee activity when that exceptional item is excluded.
Operating expenses associated with the fee-related business increased 6% to £175m, below the growth rate in management fees. The fee-related earnings margin improved from 50.4% to 53.1%.
Overall operating cash flow nevertheless declined to £219m from £467m, reflecting a difference between recurring earnings growth and the amount of cash generated during the reporting period.
At the end of September, the company held approximately $37bn in capital available for new investments, including $18bn not yet generating management fees.
ICG has continued developing its investment offering through new private debt and strategic equity strategies, the appointment of a European infrastructure debt team, and its partnership with French asset manager Amundi.
The first investment product launched through that partnership extends ICG’s distribution into the wealth management market, complementing its established institutional activities.
Chief executive and chief investment officer Benoît Durteste said the company’s emphasis on long-term investment performance was gaining recognition among institutional clients.
He said: “We continue to invest in enhancing our client offering, and have the financial strength to do so through market cycles.”
ICG has maintained its objective of raising at least $55bn between April 2024 and March 2028, having secured approximately $48bn towards that target.
It also announced a medium-term ambition to maintain zero net debt, with surplus capital available for shareholder returns after funding investments intended to increase fee-related earnings.
Net debt stood at £93m at the end of September, compared with £113m at the previous financial year-end, while available liquidity totalled approximately £1.43bn.
The interim dividend increased 5% to 29p per share.
The company’s results show continued expansion of recurring management income alongside lower overall profitability, with further growth dependent on fundraising, investment deployment, and the conversion of committed capital into fee-generating assets.
