ICG plots sale of hedge fund data platform With Intelligence

Ryan Gould
12 December 2022

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Intermediate Capital Group is in the early stages of exploring a sale of With Intelligence, the data and intelligence service used by the asset management industry, sources familiar with the matter said.

The London-based buyout group is aiming to capitalize on elevated demand for financial data and analytics through a formal sale process earmarked to kick off towards the second half of 2023, according to the sources.

While advisory roles are yet to be finalized, Houlihan Lokey is among the frontrunners to land the sale mandate, two of the sources said. The timing of any process could also slip depending on market conditions and the availability of financing, the sources added.

Founded in 1998 as Pageant Media, With Intelligence owns brands including Hedge Fund Alert, hedge fund-focused alternative research platform Eurekahedge and Pension Funds Online. The firm also runs invitation-only events and, in November, launched its new With HFM data product.

ICG's Europe Mid-Market Fund acquired a majority stake in With Intelligence in February 2020 for a sum said to be worth more than GBP 100m (USD 122m).

London-headquartered With Intelligence is anticipated to appeal predominantly to private equity firms, according to the sources. Buyout groups have shown strong interest in financial news and data offerings, with Permira's roughly USD 1.3bn (GBP 1.05bn) deal for distressed debt and bankruptcy intelligence provider Reorg and TA Associates's USD 1bn-plus acquisition of commercial real estate-focused Green Street among the year's largest information services deals.

With Intelligence, which reported turnover of approximately GBP 44m for the year ended February 2022, is expected to be marketed off forward-looking EBITDA in the region of GBP 20m-GBP 30m, two of the sources said.

While the company booked a gross profit of roughly GBP 21.2m for last year, administrative expenses saw it record an operating loss of GBP 12m, a recent accounts filing shows. Accounting for 62% of revenues, turnover from the company's subscription-based products grew 35%.

Representatives for ICG and Houlihan Lokey declined to comment. A representative for With Intelligence did not respond to requests for comment.