ICG says it sees buy-outs returning

UK-listed high yield credit manager Intermediate Capital Group said in a management statement today that it expects to make its first material investments since mid-2008 shortly. The firm, which expects to deploy between £150 million ($242 million) and £200 million of capital this year, says it sees signs of momentum in mid-market leveraged buy-outs in both North America and Asia. However, it says that it does not expect the European LBO market to reopen in any size until liquidity returns to the banking system.

The company also says it cut its losses and sold for £36 million its holding of mezzanine loans issued by Gala Coral. ICG has not disclosed what the face value of this investment was, but says the sale allowed it to partially reverse a previous write-down.