Changes to recognition of performance fees, increasing guidance
2 October 2025
Changes to recognition of performance fees, increasing guidance
Over the last five years ICG plc (“ICG” or “the Company”) has grown equity-like fee-earning AUM1, which has the potential to generate higher levels of performance fees, by 3.0x.
In order to make performance fees more visible, and to remove certain elements of management judgment, the Company is changing the way it recognises performance fee revenue in its financial statements2. This will be implemented at the Company’s H1 FY26 results, which are expected to be announced on 18 November 2025.
Summary of new approach
As a result of these changes, and unless there is a reason to deviate, the following approach will now be taken:
- Recognition of performance fees for a fund will commence when i) the successor vintage holds a first close; and ii) the investment period of the current vintage ends (for example, recognition for Europe Mid-Market II will start when Europe Mid-Market III has a first close and Europe Mid-Market II’s investment period ends). This removes the current management judgement around timing of when a fund is likely to reach its performance fees hurdle;
- A discount will be applied based on an assumed fund life of 12 years, compared to 10 years previously;
- The performance fee revenue will be based on the fund’s valuation at the date of the financial statements, consistent with current approach.
H1 FY26 P&L impact
As a result of this change, the Company will recognise a one-off gain of £65 – 75m in its H1 FY26 results.
Total performance fees for H1 FY26 are expected to be in the range of £90 – 95m3.
Ongoing P&L impact
In future periods, and all other things being equal, the recognition of performance fees is expected to be more visible than under the current approach, in particular in the early years of a fund’s life.
These changes do not impact the total amount of performance fees ICG plc will receive over the life of a fund.
We expect performance fees to remain a relatively small but increasingly valuable revenue stream for us.
The impact will be reflected both in the Company’s APM and its statutory (IFRS) accounts. As is currently the case, we expect there to be minimal difference between the APM and IFRS accounting for performance fees.
No changes to cash
These changes do not impact the total amount of performance fees ICG will receive over the life of a fund or the timing of those cash receipts.
Ongoing reporting
The Company will continue to report performance fee revenue, realised performance fees (cash received), and the performance fee accrual on the balance sheet, in line with its current disclosure.
Increasing guidance
As a result of our higher performance fee potential, which will be visible earlier as a result of the accounting change outlined above, we are increasing our medium term guidance for performance fees and FMC operating margin:
- Performance fees are now expected to represent 10-20% of total fee income (vs. 10-15% previously);
- FMC operating margin is expected to be in excess of 54% (vs. 52% previously).
COMPANY PRESENTATION
The Company will hold a presentation for analysts and investors to discuss the updated performance fee accounting at 2pm BST today.
The presentation can be viewed and a replay will be available on the Company’s website in due course.
COMPANY TIMETABLE
| Half year results announcement | 18 November 2025 |
ENQUIRIES
| Shareholder and debtholders / analysts: | |
| Chris Hunt, Head of Corporate Development and Shareholder Relations, ICG | +44(0)20 3545 2020 |
| Media: | |
| Catherine Armstrong, Director Corporate Affairs, ICG | +44(0)20 3545 1850 |
This results statement may contain forward looking statements. These statements have been made by the Directors in good faith based on the information available to them up to the time of their approval of this report and should be treated with caution due to the inherent uncertainties, including both economic and business risk factors, underlying such forward looking information.
ABOUT ICG
ICG (LSE: ICG) is a global alternative asset manager with $123bn* in AUM and more than three decades of experience generating attractive returns. We operate from over 20 locations globally and invest our clients’ capital across Structured Capital; Private Equity Secondaries; Private Debt; Credit; and Real Assets.
Our exceptional people originate differentiated opportunities, invest responsibly, and deliver long-term value. We partner with management teams, founders, and business owners in a creative and solutions-focused approach, supporting them with our expertise and flexible capital. For more information visit our website and follow us on LinkedIn.
*As at 30 June 2025.
1 Comprised of fee-earning AUM within Structured Capital, Private Equity Secondaries and Real Assets equity strategies.
2 Excluding evergreens and Credit.
3 These figures are included in this announcement for informational purposes only; the Company is not intending to announced expected performance fees on an ongoing basis.
