Investcorp, an alternative investment manager that counts Abu Dhabi’s Mubadala Investment Company as its biggest shareholder, reported a 5 per cent rise in its first half-year profit, boosted by an increase in fee income from assets under management and lower operating expenses.
Net income for the six-month period of the company's fiscal year ending December 31 rose to $58 million, Investcorp said on Tuesday.
"First half results are a testament to Investcorp’s ability to perform well despite ongoing challenges in global markets. This is due to our determination to expand globally, to increase our commitments from institutional clients and to offer more products to our clients", said Mohammed Alardhi, Investcorp executive chairman.
The Manama-based company made its first private equity investment in China in the first half of its fiscal year, its first acquisition of a private equity investment to be fully placed in the US and its first foray into India with the acquisition of a private equity and real estate investment business.
"This diversification strategy continues to be supported by our robust balance sheet position," Mr Alardhi said.
The company’s assets under management stood at $22.5bn.
Since its inception in 1982, Investcorp has made more than 175 corporate investments in the US, Europe and the broader Middle East and North Africa region, including Turkey. The company has invested across a range of sectors with the total transaction value exceeding $57bn. Mubadala, a strategic investment arm of Abu Dhabi, owns a 20 per cent stake in Investcorp.
Private equity investments during the first half of the financial year climbed 39 per cent to $416m, while total placement and fundraising activities more than doubled to $548m as distributions to clients grew more than twofold to $952m.
Following the period end, Investcorp announced the launch of its India strategy with the completion of its first deal in the region. Investcorp acquired the private equity and real estate funds businesses of IDFC Alternatives Limited, a subsidiary of IDFC Limited that is listed on the National Stock Exchange of India.
Real estate investment activity dropped marginally to $242m. New investments included the US multifamily portfolios, a UK industrial and logistics portfolio, and sales included the final properties from its 2015 Residential Portfolio I, National Hotel Portfolio and 2014 Office and Industrial Portfolio, Investcorp said.
