Intermediate Capital Group will take over management of the London-listed investment trust Graphite Enterprise Trust, following the acquisition of Graphite Capital Management's private equity fund-of-funds business.
The trust makes primary and secondary private equity fund investments and co-investments, and will be renamed the ICG Enterprise Trust, effective Feb. 1. The trust has a market cap of about £400 million ($609 million).
The acquisition, made for a consideration of about £20 million and subject to regulatory approvals, will see the management team of the investment trust move to ICG, said a spokesman for the specialist money manager. The five investment professionals will form a new business within ICG, said a news release by Graphite Enterprise Trust.
The release said the appointment of ICG as manager will benefit Graphite Enterprise by providing access to a wider range of investment opportunities, access to market intelligence from the firm's direct investment team, incremental secondary and co-investment opportunities due to greater scale, and access to infrastructure and expertise across a number of areas. There will also be a reduction in management fees, and no fees on commitments to ICG funds.
Graphite Enterprise was a founding investor in ICG in 1989, and has invested in five ICG funds and nine co-investments, said the release.
Graphite Capital Management had managed the investment trust for more than 30 years.
ICG has €20.2 billion ($22 billion) in assets under management.