x Abu Dhabi, UAEMonday 22 January 2018

$50 million profit drop for Bahrain's Investcorp

Markets Update: Bahrain's Investcorp, an alternative investment manager, said profit in the second half of last year fell to $5.3 million, from $56.2 million the year earlier because of "negative returns from hedge funds"

Investcorp, an alternative investment manager based in Bahrain, said profit for the six months ended December slumped to $5.3 million, compared with $56.2 million in the year earlier because of "negative returns from hedge funds."

"Asset-based income overall was affected by negative returns on hedge funds with the hedge fund industry worldwide experiencing drawdowns due to the turbulence caused by the Eurozone crisis," the company said in an emailed statement.

Investcorp sold its stake in Redington International Holdings, a regional distributor of IT and telecom products, to its parents company.

Investcorp said it invested $65 million for a 26 per cent stake in Redington International through its Gulf Opportunity Fund 1 in 2008.

"The sale will gross proceeds of $114.8 million representing a gross $49.8 gain, net internal rate of return of 17 per cent," the statement added.

Since its launch in 2008, Investcorp closed four private equity deals in Turkey, Saudi Arabia, the UAE and Kuwait. The company has $11.6 billion in assets under management.