Intermediate Capital Group (LON: ICP) share price held steady on Wednesday as investors cheered the upcoming entry into FTSE 100 index. The stock rose to a high of 1,587.5p, the highest point since April 2022. It has jumped by over 74% from the lowest point in 2022.
FTSE 100 upcoming entryIntermediate Capital Group is a leading company in the financial services industry. It focuses on alternative assets, which are seeing more traction among investors. It has over $81 billion in assets, with $55.3 billion of these being corporate, $17.2 billion in credit, and $8.4 billion in real assets.
ICG has clients from around the world, with most of them being in the EMEA region, Americas, and Asia Pacific. Its customers are in companies in the pension, insurance, asset manager, and family office.
ICG has done well in the past few months, helped by its private credit, which is a trend that is growing at a fast pace. The most recent results showed that its total AUM rose by 3% to $81 billion as it achieved its fundraising target of $5 billion.
ICG’s management fee income rose to £234 million while its performance fee rose to £29 million. Management fee is usually dependent on its total AUM while its performance fee is based on its returns. In this case, its effective management fee was 0.91%.
Intermediate Capital Group’s total net income for the six months to September rose to £222 million. This is a solid performance at a time when most private equity companies are not doing well as interest rates rise. In a statement, analysts at JP Morgan said:
“In addition, ICG has several new strategies on the pipeline, which we have now incorporated in our fund by fund detailed model.”
Intermediate Capital Group share price forecast
The daily chart shows that the ICG stock price has done well in the past few months. Most recently, the shares have jumped above the important resistance point at 1,514.5p, the highest point in June this year.
The stock has risen above the ascending trendline, which connects the lowest point since September 2022. It has risen above the key resistance point at 1,463p, the highest point in February and June. It has also formed an ascending triangle pattern, which is usually a bullish sign. Also, the shares have moved to the 50% Fibonacci Retracement level.
Therefore, the short-term outlook for the shares is bullish, with the next target to watch being at 1,695p, the highest point in April 2022. This price is about 10% above the current level.
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