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Intermediate Capital Group to acquire European loan portfolio from RBS

FTSE250 mezzanine finance specialist Intermediate Capital Group (LON:ICP) (NYSE:ICG) is set to acquire a €1.4bn  portfolio of European loans from the Royal Bank of Scotland (LON:RBS). The company said the deal is contributes to its strategy to grow as a “leading global alternative asset manager".

ICG currently manages over €4.7 billion of assets, and intends to manage the portfolio in its Credit Fund Management business alongside its other senior loan and high yield investment vehicles.

The portfolio primarily consists of European senior loans, totaling €1.4bn at par value.

"This is a great investment opportunity for ICG and its fund investors. ICG has a strong track record of investing in European senior loans,” ICG chief executive Christophe Evain commented.

“We believe this portfolio acquisition from RBS underlines the strength of our origination capability and the depth and breadth of our credit expertise.”

The financial terms of the transaction were not disclosed, however ICG did note that it will fund the acquisition alongside its funds ICG European Fund 2006 and ICG Recovery Fund 2008.

ICG expects the deal to close in August 2010.


Disclosure: The author holds no positions in the company