ICG Plc (ICGUF) Full Year 2026 Earnings Call Highlights: Record Cash Flow and Strategic ...

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Assets Under Management (AUM): $126 billion globally as of March 31, 2026.

Fundraising: $17 billion, surpassing expectations.

Fee-Earning AUM Growth: 11% increase during the year, reaching $87 billion.

Fee Related Earnings (FRE): 350 million, up 23% year-on-year.

Performance Fee Income: 127 million, including a 72 million transitional gain.

Group Operating Cash Flow: 861 million, a record level.

Net Debt: Reduced to 113 million from 629 million in March 2025.

Management Fees: 685 million, up 13% year-on-year.

Balance Sheet Portfolio: 2.6 billion asset value.

Dividend: 87p per share for full year 26, marking the 16th consecutive year of growth.

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For the complete transcript of the earnings call, please refer to the full earnings call transcript.

ICG Plc (ICGUF) surpassed its fundraising expectations, raising $17 billion, with fee-earning AUM growing by 11% during the year.

The company established a strategic relationship with Amundi, enhancing its position in the wealth market.

ICG Plc (ICGUF) reported a 23% year-on-year increase in fee-related earnings (FRE), reaching 350 million.

The company gained 83 new institutional LPs, bringing the total to over 870, indicating strong client confidence.

ICG Plc (ICGUF) has a substantial amount of dry powder, $36 billion, positioning it well to invest through the cycle and capitalize on emerging opportunities.

The macroeconomic environment remains challenging, with geopolitical uncertainties and economic disruptions impacting investment decisions.

ICG Plc (ICGUF) anticipates that fundraising in full year 2027 will naturally be below that of full year 2026 due to the fundraising cycle.

The company reported a negative return of 2% on its debt portfolio, driven by mark-to-market movements within its CLO portfolio.

There is a cautious approach to deployment, particularly in direct lending and secondaries, due to concerns around valuations.

The balance sheet returns were lower than expected, with a 5% return for the financial year, reflecting the challenging macro backdrop.

Q: How does ICG plan to prioritize capital deployment, especially in the context of reaching zero net debt and the new FRE performance metrics? A: David Bicarregui, CFO, emphasized that the focus remains on growing the business through investment performance, which will drive long-term shareholder value. The company is committed to a progressive dividend policy and reaching zero net debt. While strategic optionality and extra liquidity are beneficial, the company is not in a hurry to reach a net cash position. Benoit Durteste, CEO, added that the strong financial position could allow ICG to take advantage of opportunities in the alternative asset management industry.

Q: Will there be changes to the Board and key staff remuneration KPIs in light of the new disclosures? A: David Bicarregui, CFO, stated that while the current focus is on external presentation of the FRE metric, the performance measurement of the management team will eventually align with the medium-term guidance. The technical definition of FRE aligns with market standards, excluding share-based compensation to reflect a cash view.

Q: What is the guidance on group cost growth for the upcoming year, and how does ICG view deployment opportunities given the current market conditions? A: David Bicarregui, CFO, indicated that while the cost growth was 3% in FY26, the expectation is a 5-10% range due to business growth and selective hiring. Benoit Durteste, CEO, noted that despite a complex environment, ICG remains disciplined and selective in deployment, focusing on long-term opportunities across asset classes.

Q: How does ICG view the balance sheet's role and potential volatility in returns, and what are the expectations for FRE margin accretion? A: David Bicarregui, CFO, reiterated the expectation of double-digit returns over the medium to long term, with the balance sheet reflecting fund performance. FRE margin is expected to accrete over time, despite potential annual lumpiness due to the fundraising cycle.

Q: What is the strategy behind the Amundi partnership, and how does it align with ICG's institutional focus? A: Benoit Durteste, CEO, explained that the partnership with Amundi is based on a shared approach to alternative assets for wealth, focusing on long-term strategies and avoiding conflicts of interest. The partnership aims to educate the market on the benefits of illiquid investments for long-term portfolios.