ICG (ICG) Investor Update summary

Strategic growth and revenue mix

• Fee-earning AUM has doubled over five years, with equity-like strategies growing from $14bn in FY20 to $41bn in FY25 and now representing over half of total fee-earning AUM, up from a third in 2020.

• Weighted average management fee rate increased from 86bps in FY 2020 to 97bps in FY 2025, reflecting a shift to higher fee strategies.

• Management fees remain the majority of revenue, but performance fees are becoming a more significant contributor, averaging 12% of total fee income over five years.

• FY25 revenue mix: £604m management fees, £86m performance fees, £241m balance sheet return.

• Structured Capital, Private Equity Secondaries, and Real Assets equity are key drivers of future performance fee growth.

Performance fee recognition policy update

• Performance fees will now be recognized when the subsequent fund vintage holds its first close and the current vintage's investment period ends, with accrual on a linear basis over a 12-year fund life (previously 10 years).

• The new approach reduces management judgment in P&L and aligns recognition with objective fund milestones.

• No change to the timing or amount of cash received; only the timing of revenue recognition is affected.

• Illustrative modelling shows earlier recognition under the new approach, with all revenue converging at fund maturity.

• No material differences between APM and IFRS accounting for performance fees.

Financial impact and guidance

• A one-off recognition of £65–75m will be recorded in the upcoming half-year results, mainly from Europe VII, Strategic Equity III & IV, Mid-Market I, and Infrastructure Europe I.

• Total performance fees for the half-year are expected to be £90–95m.

• Medium-term guidance for performance fees as a percentage of total fee income is raised to 10–20% (from 10–15%), and FMC operating margin guidance is increased to over 54% (from 52%).

• The upgrade to performance fee guidance reflects both the accounting change and increased underlying performance fee potential from business growth.

• Performance fees remain a small but increasingly valuable revenue stream.