ICG's fundraising and Amundi tie-up build long-term growth
Fundraising momentum and dividend ICG's fee-earning assets grew 3% to $88bn in the June quarter, with $4.1bn raised and its largest-ever fund on track to close at €12bn. More fee-earning assets mean more recurring management fees, which supports profits and the share price. A final dividend of 59.3p was also declared.
Shows the core business is growing and returning cash, a fundamental positive for the shares.
Amundi partnership becomes real Amundi bought a 9.9% stake in ICG for about €620m and will be the sole global distributor of ICG's evergreen products to wealth investors for 10 years, with ICG the exclusive supplier. This opens a large new sales channel, which should lift future fundraising and fees.
The completed stake purchase and distribution deal is the biggest new event driving ICG's growth outlook.
Societe Generale raises stake Societe Generale lifted its voting rights in ICG to 9.51% from about 6.34%, a sign of confidence from a major financial institution. Large institutional backing can support the share price by reducing the number of shares available and signalling belief in the company.
A notable institutional investor increasing its holding is a fresh positive signal for the stock.