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Corporate overview

ICG-Longbow, the real estate business of Intermediate Capital Group plc (ICG), is a specialist investment manager which provides debt and equity capital, predominantly to the UK commercial property and residential markets, in addition to its pan-European sale and lease strategy. Since 2006, ICG-Longbow has made 170 investments across its strategies and as of June 2019 has £3.5bn of assets under management.

An entrepreneurial business with institutional ownership, ICGLongbow offers a range of funds and investment solutions providing differentiated risk and return profiles to help its investor clients meet their future liabilities.

ICG-Longbow approaches investments as a partnership with its borrowers and equity partners, providing flexible and bespoke funding solutions which support the varied investments objectives of property developers, investors and corporate owners.

ICG-Longbow’s 33-strong, multi-disciplined professional team directly sources, structures and underwrites its own investment opportunities, manages all investments in-house and includes seven professionals dedicated to credit risk management, portfolio monitoring and fund operations. The senior management team has an average of 30 years’ experience in direct property, financing, credit and investment management.

ICG is a global alternative asset manager with over 30 years’ history managing €38.6bn* of assets in private debt, credit and equity, principally in closed-end funds.

ICG provides capital to help companies grow through private and public markets, developing long-term relationships with our business partners to deliver value for shareholders, clients and employees. ICG operates across four asset classes – corporate, capital market, real assets and secondary investments. In addition to growing existing strategies, it is committed to innovation and pioneering new strategies across these asset classes where the market opportunity exists.

ICG is listed on the London Stock Exchange (ticker symbol: ICP). Further details are available at: www.icgam.com . You can follow ICG on Twitter and LinkedIn.

* As at 30 June 2019

Investment principles & strategy

Underpinned by a partnership based approach to investing and reputation for delivery, ICG-Longbow supports property developers, investors and corporate owners in realising their business plans and investments objectives.

ICG-Longbow directly sources its own investment opportunities; originating, structuring and managing all investments in-house. We take a selective approach to investing, with our risk-averse underwriting and investment decisions based on our in-depth understanding of property occupational and capital markets fundamentals.

In everything we do, we invest on property fundamentals, focusing on:

  • Sub-market supply/demand analysis
  • Occupier suitability
  • Sustainability of cashflow
  • True net operating income
  • Liquidity of underlying real estate on exit

OUR STRATEGIES

Partnership Capital

  • Whole loans, mezzanine and preferred equity up to 100% of purchase price
  • Flexible partnership approach
  • All sectors, including alternatives and operational assets
  • Focused on value-add projects from £20m–150m

Senior Debt

  • Fixed-rate loans up to 65% LTV; loan terms from three to 20 years
  • A primary focus on mid-market lending and investing across the UK regions
  • Preference for diverse income streams and value-add business
  • Loan commitments from £10m–100m across core and alternative property sectors

Development

  • Whole loan development
  • Flexible approach can accommodate dynamic business plans
  • Focus is on residential lead schemes with planning
  • Loan size £25m–250m

Sale and Leaseback

  • Acquisition of mission-critical real estate from corporates
  • Monetises 100% of corporate’s real estate value in a tax efficient manner
  • Corporate maintains full operational control of its real estate
  • Pan-European, cross-sector
  • Assets acquired from €40m–400m

Strategic corporate development

ICG-Longbow is the trading name of ICG’s specialist real estate business, which was originally established in 2006 by Kevin Cooper and Martin Wheeler (now the Co-Heads), with the primary objective of becoming the leading independent provider and manager of debt finance to the commercial real estate sector in the UK.

It has been part of ICG since 2011, since then ICG-Longbow has grown to become the second largest commercial real estate debt manager in Europe*.

ICG-Longbow’s investment teams now provide investors four principal strategies, offering differentiated risk and return profiles across debt in the UK, more recently expanding into Europe through its sale and leaseback strategy. For 2020, ICG-Longbow intends to expand its Partnership Capital real estate debt strategies into Europe, making this successful strategy available to Euro based investors.

* Source: The 2019 Real Estate Capital Debt Fund 20, May 2019

Performance verification

ICG-Longbow and its founders have a track record dating back to 2002, all underpinned by its consistent UK focus and investment philosophy, covering:

  • In excess of £5bn advanced in connection with 126 senior debt transactions
  • In excess of £2.9bn invested in 127 whole loan, mezzanine and equity transactions

COMPLIANCE STATEMENT

The information contained herein is for the sole purpose of providing general information to institutional investors about ICG-Longbow. Certain information provided herein sets out general views of ICG-Longbow regarding certain property markets and types of property therein. No representation is made concerning the accuracy of the information compiled herein, and no guarantee or assurance is given that any forecast or opinion in these materials will be realised. For the avoidance of doubt, the information contained herein is not investment advice and may not be construed as the promotion or marketing of any services or financial product sponsored or provided by ICG-Longbow. The regulated activities of ICG-Longbow are authorised and regulated by the Financial Conduct Authority in the United Kingdom.