The Bahrain-based firm wants to woo more Asian investors
With eyes on Asia, Investcorp eyes 10 private equity, real estate deals
Investcorp, the Bahrain-based alternative investment firm, expects to close at least 10 private equity and real estate deals this year with an eye to courting more Asian investors for fundraising after it secured a record US$4.1 billion from clients in its last financial year, a top executive said.
Investcorp, in which Abu Dhabi’s Mubadala Investment Company is the largest shareholder with a 20 per cent stake, announced yesterday a 34 per cent year-on-year increase in net profit to $120.3 million from $90.1m in the financial year that ended in June.
In the second half, net profit more than doubled to $84.6m from $39.2m in a year-earlier period.
The company’s assets under management (AUM) doubled to $21.3bn at the end of the financial year, compared with a year-earlier period.
“For the coming year we are targeting 10 in aggregate (deals) across private equity and real estate and the pipeline that we have in each of those areas across the three continents (of Europe, North America and the Arabian Gulf) is a very healthy pipeline,” said Rishi Kapoor, co-chief executive of Investcorp.
He declined to give a value for the deals expected to be struck this financial year.
Investcorp is expanding its client coverage and its product lines as part of a 2015 strategy of reaching an AUM of $25bn over a five-year period, with a long-term objective of taking AUM to $100bn, he added.
The ‘sweet-spot’ for deal size in private equity is between $200m to $500m, he said.
For the real estate business, it invested last year $530m, with investments expected to be split 80 per cent in North America and 20 per cent in Europe, which is a recent addition to its property portfolio.
The firm typically makes $5bn to $7bn in investments a year across its four businesses of private equity, real estate, alternative investment solutions and credit management, a new line of business that was added with the acquisition of UK-based 3i's debt management business for £222m in October of last year.
Investcorp opened in April an office in Singapore as part of plans of expanding its client coverage, particularly from Japan, mainland China, Hong Kong, Thailand, South Korea and Singapore, said Mr Kapoor.
“We are looking to build out a broader client coverage capability for Asia out of Singapore office in the first step,” he said.
“Over the long term as a second logical step, we would probably look to expand that capability to include some direct investment capability into some select economies into Asia.”