France's Amundi takes 10% stake in ICG

(Sharecast News) - Shares in ICG rallied in early trading on Monday, after French asset manager Amundi agreed to take a near 10% in its British rival. Under the ten-year partnership deal, Amundi - Europe's largest asset manager - will take a 9.9% stake in the British firm. It will also nominate a non-executive director to sit on ICG's board.

Financial details were not disclosed, but the holding is worth around £600m, based on ICG's current market capitalisation of £6bn.

Amundi - which is majority owned by French lender Credit Agricole - will also be the exclusive global distributor in the wealth channel of ICG's evergreen and other certain products. In return, ICG will become Amundi's exclusive provider for these products.

The two firms will also jointly develop new products targeting wealth investors.

As at 0830 GMT, the blue chip was trading 9% higher at 2,055.48p. Amundi's Paris-listed stock was down 3%.

Benoit Durteste, ICG chief executive, called the partnership a "meaningful step forward".

He continued: "The combination of ICG's investment expertise and entrepreneurial mindset with Amundi's structuring capability and extensive distribution network creates a differentiated partnership with substantial potential, and materially accelerates our ability to access and shape the evolving wealth channels for private markets."

The announcement coincided with interim numbers from ICG, which showed a 6% uplift in fee-earning assets under management, to $84bn. Total AUM rose 14% in the six months to 30 September to $124.3bn.

Management fees increased 16% to £334m while group pre-tax profits surged to £352m from £198m.

Durteste added: "In recent years we have deliberately focused on scaling higher-return strategies.

"This approach continues to have a positive impact on our client franchise, our market positioning and the fee income we generate for our shareholders.

"Looking ahead, the transaction pipelines appear to be very encouraging for many of our investment teams, and discipline remains crucial in the face of a very uncertain environment."