Investcorp Explained

Investcorp Holdings B.S.C.
Type:Private
Key People:Mohammed Mahfoodh Al Ardhi
(executive chairman)
Rishi Kapoor
(co-CEO)
Hazem Ben-Gacem
(co-CEO)
Founders:Nemir Kirdar, Elias Hallak, Savio Tung, Cem Cesmig, Mike Merritt
Location:Manama, Bahrain
Products:Private equity, real estate, hedge funds, credit management
Aum:US$50 billion[1]

Investcorp is a global manager of alternative investment products, for private[2] and institutional[3] clients. Founded in Bahrain in 1982, the firm has offices in United States, United Kingdom, Saudi Arabia, Qatar, United Arab Emirates, India, China, Japan, and Singapore. Investcorp's principal client base is in the six countries of the Gulf Cooperation Council,[4] but it also has a growing base of institutional clients in North America, Europe, and Asia.

The group's biggest external shareholder is Mubadala Investment Company, a $229 billion Abu Dhabi sovereign wealth fund, which has a stake of 20 percent.[5] The company's main activities include private equity, real estate, and credit management,[6] and has $50 billion[7] worth of assets under management, as of April 2023.  

Investcorp has 7 asset classes[8] which include private equity, real estate, credit, absolute return strategies, GP stakes, infrastructure, and insurance asset management.

History

The company was co-founded in 1982 by Nemir Kirdar,[9] Elias Hallak, Savio Tung, Mike Merritt, and Cem Cesmig and acquired Tiffany & Co in 1984, floating in 1987.[10] [11] In 1988, Maurizio Gucci sold almost 47.8% of Gucci to Investcorp,[12] and withheld the other 50% until 1993.[13]

The company diversified in 1997 into hedge funds.[14] Kirdar stepped down as CEO and executive chairman in 2015.[15] With Kirdar resigning, Mohammad Alardhi became the Executive Chairman of the company.[7] The changes also involved an update to the business model, which is now focused on raising funds, raising institutional capital, and diversifying strategies further.[16]

Investcorp made several acquisitions between 2016 and 2019, pushing into China with investments into tech and the food sector.[17] [18] In 2019, the company also pushed into the US market with the acquisition of Mercury Capital.[19] Investcorp's portfolio company, Moneybookers, ended its relationship with WikiLeaks in August 2010.[20]

The company was regulated in Bahrain as a wholesale bank until 2019, when it voluntarily surrendered its wholesale banking license.[21] It remained listed on the Bahrain Bourse (BSE) for four decades until 2021, when it delisted itself as a result of low trading volumes.[5]

Investment areas

Private equity

Investcorp's traditional activity is private equity. This includes mid-size companies in North America, Western Europe and MENA including Turkey, as well as technology lower mid-cap investment,[22] through Investcorp Technology Partners.

The past and present portfolio includes over 175 investments.[23] Selected past investments include:

Real estate investment

The real estate division[43] based in New York and London, sources and performs due diligence, and arranges financing and the acquisition of US and European properties and US commercial mortgage debt positions. The investment in these properties or loans is typically aggregated into a series of multi-investment portfolios for placement to clients. Debt investments are also made within a series of debt funds[44] which are managed by the group. Since 1996, Investcorp has acquired over 1,000 properties for a total value of approximately $23billion.[45] Investcorp is among the top-10 largest cross-border buyers and sellers of US real estate.[46]

Hedge funds

Established in 1996, Investcorp's hedge fund business grew to an approximate value of $3.5 billion capital under management,[47] out of which approximately $0.2 billion is reserved for proprietary investments.[48] The hedge fund business provides institutional investors with access to its emerging manager program, investing with and seeding early-stage managers who, according to Investcorp research, outperform larger hedge funds on a risk-adjusted basis.[49] In 2020, Investcorp merged its hedge fund business with Tages Group, a European alternative asset management firm, creating a 50/50 joint venture.[50]

Credit management

Investcorp Credit Management has assets under management of over $22 billion.[51] Based in London, New York, and Singapore, they manage funds that invest primarily in senior secured corporate debt issued by mid and large-cap corporates in Western Europe and the US.

Investcorp Insurance

In October 2021, the company launched its Investcorp Insurance Solutions platform which provides investment management services to meet the unique investment needs of insurers.[52]

References

Notes and References

  1. Web site: Khan . Sarmad . 2023-02-27 . Bahrain's Investcorp enters Japan in global expansion push . 2023-03-22 . The National . en.
  2. Web site: 2020-12-14 . Investcorp appoints Yusef Al Yusef as Head of Private Wealth THE DAILY TRIBUNE KINGDOM OF BAHRAIN . 2023-06-26 . DT News . en-US.
  3. Web site: Armental . Maria . Investcorp Collects More Than $1.2 Billion to Invest in North America . 2023-06-26 . WSJ . en-US.
  4. Web site: In Times of Trouble . 2023-06-26 . Forbes . en.
  5. News: 2021-06-02 . Latest Gulf Delisting Ends Almost Four-Decade Era for Investcorp . en . Bloomberg.com . 2023-06-26.
  6. Web site: Investcorp . 2023-06-26 . Investcorp . en-GB.
  7. News: Hill . Andrew . 2023-04-16 . Mohammed Alardhi: the fighter pilot on taking the controls at Investcorp . Financial Times . 2023-06-26.
  8. Web site: Release . Press . Investcorp acquires Shearer Supply, a leading HVAC equipment distributor . 2023-06-26 . www.zawya.com . en.
  9. Web site: Anderson . Robert . 2017-10-04 . Founder of Bahrain's Investcorp retires UAE News . 2022-10-20 . en-US.
  10. Web site: James . Rod . 2019-10-08 . Three firms changing the PE landscape: Investcorp . 2019-12-04 . Private Equity International . en-GB.
  11. Web site: 2011-09-13 . Investcorp Names CEO, North America . 2011-09-13 . Institutional Investor . en-GB.
  12. Web site: INVESTCORP BUYS HALF OF GUCCI JOC.com. 2020-08-09. www.joc.com.
  13. News: Tagliabue. John. 1995-12-14. INTERNATIONAL BUSINESS: Gucci Gains Ground With Revival of Style;Belt-Tightening in the Work Force And Lavish Spending on Marketing. en-US. The New York Times. 2020-08-09. 0362-4331.
  14. News: Jam today, jam tomorrow . The Economist . 2008-02-28 . 2013-10-04.
  15. News: Nemir Kirdar, a father of private equity in the Persian Gulf, dies at 83 . en-US . Washington Post . 2022-10-20 . 0190-8286.
  16. News: Thompson . Jennifer . 2019-09-07 . Mohammed Alardhi: 'We want to be a diversified business' . Financial Times . 2023-06-26.
  17. Web site: Bahrain's Investcorp inks deal to target Chinese tech investments. ArabianBusiness.com. en. 2019-12-04.
  18. Web site: Investcorp, Chinese Partners Launch $500M PE Fund to Invest in Asian Food Sector. 2019-11-12. Global AgInvesting. en-US. 2019-12-04.
  19. Web site: Bahrain's Investcorp acquires Mercury Capital as it expands financial portfolio. The National. 26 May 2019 . en. 2019-12-04.
  20. https://www.theguardian.com/media/2010/oct/14/wikileaks-says-funding-is-blocked WikiLeaks says funding has been blocked after government blacklisting | Media | The Guardian
  21. Web site: Bahrain's Investcorp receives regulatory approval for organizational realignment . 2023-06-26 . www.spglobal.com . en-us.
  22. Web site: Zift Solutions Receives $70 Million in Funding to Expand Market Leadership . 2023-06-26 . www.newswire.com . en.
  23. Web site: Saadi . Dania . 2019-01-30 . Investcorp enters India with acquisition of a private equity and property business . 2023-06-26 . The National . en.
  24. Web site: Investcorp sells Neptune for $475m PE Asia . Privateequityasia.com . 2013-10-04.
  25. Web site: Smith . Peter . Investcorp reports rise in net income . FT.com . 2005-08-29 . 2013-10-04.
  26. Web site: Staff . P. E. I. . 2012-12-30 . Investcorp buys Hilding Anders in secondary . 2023-06-26 . Private Equity International . en-GB.
  27. Web site: Investcorp: Apcoa geht an Eurazeo manager magazin . Manager-magazin.de . 2007-02-19 . 2013-10-04.
  28. Web site: American Tire Distributors Holdings Announces Acquisition By . Bloomberg . 2010-04-21 . 2013-10-04.
  29. Web site: Gray . Alistair . Intertek in £450m Moody International deal . FT.com . 2011-03-08 . 2013-10-04.
  30. Web site: Hillary Canada . FleetPride Motors Over to Its Latest Private Owner, TPG . Pevc.dowjones.com . 2012-10-09 . 2013-10-04.
  31. https://www.reuters.com/article/bahrain-investcorp-bank-idUSL5N0SP13I20141030 Bahrain's Investcorp, Mumtalakat buy U.S. workforce services firm PRO Unlimited | Reuters
  32. Web site: Investcorp acquires majority stake on Italian luxury brand . 16 March 2021 . 29 November 2018 . https://web.archive.org/web/20181129012847/https://www.investcorp.com/news-and-media/article/investcorp-acquires-majority-stake-in-italian-luxury-brand-corneliani . dead .
  33. Web site: Bahrain Bahrains Investcorp acquires majority stake in marketplace Ageras. Gulfbusiness. 15 March 2017. en-US. 2020-10-27.
  34. Web site: German security firm Avira has been acquired by Investcorp at a $180M valuation. TechCrunch. 9 April 2020 . en-US. 2020-04-16.
  35. Web site: Investcorp Announces Sale of United Talent Agency Investment.
  36. Web site: East . Forbes Middle . Investcorp Expands Healthcare Portfolio With Latest Acquisition In Danish Clinical Trial Firm Sanos Group . 2023-06-26 . Forbes ME . en-US.
  37. News: 2020-11-22 . Investcorp invests in Indian logistics startup Xpressbees . The Times of India . 2023-06-26 . 0971-8257.
  38. Web site: Rahman . Fareed . 2020-11-15 . Investcorp backs Indian start-up FreshToHome . 2023-06-26 . The National . en.
  39. Web site: Kamel . Deena . 2020-02-12 . Bahrain's Investcorp acquires US-based food distributor . 2023-06-26 . The National . en.
  40. Web site: Power . RESA . Investcorp Acquires RESA Power, a Leading Electrical Services Provider, from Blue Sea Capital . 2023-06-26 . www.prnewswire.com . en.
  41. Web site: 2021-06-28 . Bahrain asset company Investcorp acquires Italian price comparison site CloudCare . 2023-06-26 . gulfnews.com . en.
  42. Web site: Rahman . Fareed . 2022-12-02 . Bahrain's Investcorp agrees to buy Marble Point Credit to expand its portfolio . 2023-06-26 . The National . en.
  43. Web site: Private Equity Real Estate July/August 2007 Volume 3, Issue 6 . dead . https://web.archive.org/web/20120320133732/http://www.privateequityrealestate.net/resources/PERE%2007/JulyPERE07_lowresfinal.pdf . 20 March 2012 . 26 August 2011.
  44. News: Platt . Eric . Gara . Antoine . 2022-12-02 . Bahrain's Investcorp buys US private credit manager for $200mn . Financial Times . 2023-06-26.
  45. Web site: Rahman . Fareed . 2022-01-24 . Investcorp's real estate deal volume in US hit $4bn in 2021 . 2023-06-26 . The National . en.
  46. Web site: Godinho . Varun . 2022-02-16 . Bahrain's Investcorp acquires 64 industrial properties worth $640m in the US . 2023-06-26 . en-US.
  47. Web site: Hedgeweek . 2022-11-22 . Strategic partnerships key to growth . 2023-06-26 . Hedgeweek.
  48. Book: Investcorp . Annual Report 2022 . Investcorp . 2022.
  49. News: 2010-05-20 . Investcorp eyes overlooked hedge funds . en . Reuters . 2023-06-26.
  50. Web site: 2020-05-05 . Amid Market Turmoil, A New Alternatives Joint Venture Emerges . 2023-06-26 . Institutional Investor . en-gb.
  51. Web site: 2022-12-02 . Investcorp to acquire CLO specialist Marble Point Credit Management . 2023-06-26 . Pensions & Investments . en.
  52. Web site: Investcorp . Investcorp Launches Insurance Solutions Business . 2023-06-26 . www.prnewswire.com . en.

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