Intermediate Capital Group (ICG), the specialist asset manager, announced it has exercised an option to purchase the remaining 49% of Longbow Real Estate Capital LLP (ICG-Longbow). Completion of the acquisition is anticipated in October.
An initial payment totaling approximately £13 million (€16.5 million) will be made to the Partners at Completion; further deferred consideration payable to the Partners in 2016 is estimated to be approximately £24 million (€30 million).
The acquisition cements the highly successful relationship between ICG and the ICG-Longbow management and investment team, first established in 2011.
ICG initially acquired 51% of Longbow in March 2011 to add direct real estate finance to its growing portfolio of specialist mezzanine and senior debt investment strategies and has invested or committed over £150 million (approx. €190 mln) of balance sheet capital as co-investments in ICG-Longbow’s funds. As part of the agreement, ICG has put in place appropriate long-term incentive plans for ICG-Longbow’s management and portfolio team, ensuring long term alignment of interests with the ICG Group and fund investors.
Commenting on the news Christophe Evain, Chief Executive Officer of ICG said, “ICG’s business model is underpinned by launching and developing new strategies that utilize the best of our investment expertise, specialist local knowledge and relationships. The 51% acquisition of ICG-Longbow in 2011 initiated the acceleration of this strategy. I am delighted to be completing the acquisition of the balance of ICG-Longbow now, as the potential of the business is even greater today than it was in 2011. I am sure that the ambitions, depth of specialist knowledge and expertise of the committed and incentivized ICG-Longbow team will allow this potential to be fully realized.”
Kevin Cooper, Joint Managing Partner of ICG-Longbow commented, “The acquisition validates the strength of the business that has been built, the depth of talent in the team and the scale of the opportunity going forward. We remain excited by the market opportunity and the potential for ICG-Longbow to continue to grow its reputation, amongst investors and sponsors, as a leading provider of real estate capital in the Europe”