ICG, the London-listed private markets manager, said on Wednesday, Nov. 11, that pretax profit for the six months to Sept. 30 fell 18% to 287.3 million pounds on its adjusted basis, from 351.6 million pounds a year earlier, as performance fees shrank. Management fees, the steadier part of the business, rose 12% to 374 million pounds.

The results show the split that runs through alternative asset managers this year. Fee income from locked-up client money keeps growing, while the lumpier income from performance fees and the firm's own balance sheet swings. For investors in Asia, ICG is a useful read on private credit and structured capital, asset classes that pension funds, insurers and wealth managers across the region have been adding to. The firm runs Asia Pacific funds and an Australian loans strategy, and it said an Asia infrastructure fund is raising money.

ICG fee earnings climb on record Europe IX fund

Fee-related earnings, the profit ICG makes from management fees after costs, rose 18% to 199 million pounds, or 68 pence per share, up from 58 pence a year earlier. The fee-related earnings margin widened to 53.1% from 50.4%. Stripping out catch-up fees, which new investors pay when they join a fund after its first close, the margin was 47.4%.

Those catch-up fees came mostly from ICG Europe Fund IX. The fund held its final close at 12 billion euros in September, 50% larger than its predecessor, according to ICG's announcement at the time. Previous investors committed 5.9 billion euros and about 90 new investors put in 6.7 billion euros. ICG said the fund was oversubscribed and that it chose not to raise its hard cap. Citing Preqin data, the firm described it as the largest dedicated structured capital fund raised globally. Alternative Credit Investor reported the same figures when the close was announced.

In the interim statement, ICG said Europe IX contributed 41 million pounds of catch-up fees in the half, against 9 million pounds a year earlier. It accounted for $3.3 billion of the $7.6 billion the firm raised across all strategies in the six months.

Chief executive and chief investment officer Benoît Durteste said ICG is "in an exciting period of inflexion."

Performance fees drop, private debt deployment slows

The fall in profit came mainly from performance fees, which dropped to 23.6 million pounds from 97.6 million pounds. The year-earlier figure included a one-off 72 million pound gain from a change in how ICG accounts for those fees in October 2025. Net returns on ICG's own balance sheet investments fell 15% to 93.3 million pounds, and lower foreign exchange gains cut other income. Earnings per share on the adjusted basis fell to 80 pence from 102 pence.

ICG's debt business, which includes its direct lending funds, raised $2.1 billion, up 22%. But it deployed only $1.7 billion and realised $1.0 billion, both down 47% from a year earlier. Fee-earning assets in the strategy were flat at $14.6 billion, and management fees there held at 78 million pounds. Senior Debt Partners 5, a 7.3 billion euro direct lending fund, was 73% deployed with a 13% gross internal rate of return, the firm said.

Across the group, ICG deployed $4.1 billion and realised $1.6 billion in the half. It had $37 billion of uncalled capital ready to invest, of which $18 billion does not yet earn fees. That figure matters for future revenue: fees on much of that money start only once it is put to work.

Assets, dividend and capital plans

Fee-earning assets under management rose to $89.7 billion from $86.5 billion at the start of April, up 5% at constant exchange rates. Total assets under management were $145 billion. That total is not directly comparable with earlier periods: ICG changed its method on Sept. 30 to include unrealised gains on deployed assets, which added $16 billion, and did not restate prior figures.

ICG kept its medium-term targets. It aims to raise at least $55 billion between April 2024 and March 2028 and has raised $48 billion so far. It also expects performance fees to make up about 10% to 20% of total fee income over time.

During the half, ICG completed its equity partnership with French asset manager Amundi. The firm said it is targeting zero net debt over the medium term. Net debt was 93 million pounds at the end of September, down from 113 million pounds in March. ICG did not announce a buyback, saying that funding chances to grow fee-related earnings per share, including acquisitions, would come first.

The board declared an interim dividend of 29.0 pence a share, up from 27.7 pence. The shares go ex-dividend on Dec. 3 and the dividend is paid on Jan. 8, 2027. ICG will publish its next trading statement, for the quarter to Dec. 31, on Jan. 20, 2027.