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Abu Dhabi, UAEWednesday 23 January 2019

Investcorp transfers two firms to new fund as it seeks growth for $185m tech companies 

Investcorp, which counts Mubadala as its biggest shareholder, has been on an acquisition spree in the last few months

Investcorp has partnered up with a London-based firm to create a $1bn buyout fund. Courtesy Investcorp
Investcorp has partnered up with a London-based firm to create a $1bn buyout fund. Courtesy Investcorp

Investcorp, the Bahrain-based firm that counts Mubadala Investment Company as its biggest shareholder, said its technology unit transferred two of its portfolio companies with enterprise value of $185 million (Dh678.95m) to a continuation investment fund.

Investcorp, an alternative investment management firm has joined hands with of HarbourVest, a private markets investment specialist, which supports the Investcorp Secondary Fund 2018, it said in a statement on Monday.

“This commitment from HarbourVest demonstrates their belief in us as one of the leading lower mid-market investors,” said Hazem Ben-Gacem, Investcorp’s co-chief executive.

By concluding this transaction, Investcorp will have the opportunity to maximise the value creation potential of the two transferred companies, which were previously a part of ITP (Investcorp Technology Partners) Fund III portfolio. The companies will now have active support and fresh capital over an additional holding period under continued management.

“Our third technology fund has performed very well in the recent years. We look forward to realise further growth while continuing to deliver a strong return for our investors and shareholders,” Mr Ben-Gacem said.

Investcorp, in which Abu-Dhabi-headquartered Mubadala has a 20 per cent stake, has been on an acquisition spree in the last few months.

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In September last year, the company said it is investing as much as $250m in the Chinese market, its first foray into the world's second-biggest economy as it looks to expand its portfolio of investments globally. In the same month, it acquired a minority stake in Swiss-regulated Banque Paris Bertrand Sturdza for an undisclosed sum.

Investcorp is snapping up assets as it seeks to nearly double its assets under management to reach $50 billion in the medium-term from $22.6bn at the end of June 2018. In 2017, the company acquired a $12bn AUM credit management business now known as Investcorp Credit Management.

The company has invested across a range of sectors including more than 600 commercial and residential real estate investments in the US.

“We believe there is significant potential for out performance in European middle-market technology investing,” said Greg Ciesielski, principal at HarbourVest Partners.

Investcorp Technology Partners recently announced the close of its fourth Technology Fund, ITP Fund IV, a $400m pool, which closed in excess of its target and received strong support from a diverse group of global blue-chip institutional investors.

Updated: January 7, 2019 07:38 PM

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