Investcorp

Investcorp
Public
Traded as BHSE: INVCORP
Founded 1982 (1982)
Headquarters Manama, Bahrain
Key people
 Mohammed Mahfoodh Alardhi,
(Executive Chairman),
Rishi Kapoor,
(Co-CEO)
Mohammed Al Shroogi,
(Co-CEO)
Products Corporate investment, real estate, hedge funds, credit management
Total assets $22.2 billion[1]
Website www.investcorp.com

Investcorp is a global manager of alternative investment products, for private and institutional clients.[2][3] It has offices in New York City, Bahrain, London, Riyadh, Abu Dhabi, Doha and Singapore.

The company offers investments in corporate investment, real estate, credit management and alternative investment solutions, and has arranged investments with a combined value of approximately $55 billion. It typically places the private equity of companies and real estate properties it acquires directly with investors on a deal-by-deal basis and through a fund structure. In addition, the firm operates the Gulf Opportunity Fund investing in the MENA region,[4] and a number of technology[5] funds.

Since its inception in 1982, Investcorp has made over 175 corporate investments in the U.S., Europe and the Middle East and North Africa region, including Turkey, across a range of sectors including retail and consumer products, technology, business services and industrials, and more than 470 commercial and residential real estate investments in the US, for in excess of $55 billion in transaction value.

The company diversified in 1997 into hedge funds.[6] Non-Gulf investors, mainly in the US, now account for around three quarters of Investcorp’s hedge fund client assets under management, with $1 billion in new US hedge fund mandates being secured in 2009.[7]

Investcorp currently has approximately $22.2 billion in invested assets under management across its four asset classes. In 2011, it ranked 67th in the PEI300 (Private Equity Index 300) ranking of private equity firms by assets deployed, with $4.68bn invested in private equity over the previous five years.[8](subscription required).[2] Its principal client base is in the six countries of the Gulf Co-operation Council,[9] but it also has institutional clients in North America, Europe and Asia.

The company maintains relationships with over 1,000 individual and institutional investors in the Gulf.[10] The company is regulated in Bahrain as a wholesale bank, and has traditionally utilised long-term and medium-term bank financing, including private placements and syndicated loans, in order to ensure a longer maturity profile. The company's capital adequacy ratio (Basel III) at 2017 December 30 was 29.8%. The company is listed on the Bahrain Bourse (BSE), with a financial year end of 30 June.

Investcorp's portfolio company, Moneybookers, ended its relationship with WikiLeaks in August 2010 as a result of U.S. government pressure.[11]

Investment areas

Corporate investment

Corporate investment is Investcorp's traditional activity. This includes mid-size companies in North America, Western Europe and MENA including Turkey, as well as technology lower mid-cap investment, through Investcorp Technology Partners.[5]

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

  • Tiffany & Co. – retailers of jewelry and luxury goods – acquired 1984, floated 1987
  • Gucci – designer, producer and distributor of luxury accessories and apparel – acquired from 1989 to 1993, floated 1996
  • Leica Geosystems – measuring instrument manufacturer acquired 1998, floated 2000
  • Jostens – US provider of school-related affinity products – acquired 2000, sold 2003
  • Neptune Technology Group – US manufacturer of water meters – acquired 2001, sold 2003[12]
  • MW Manufacturers – a US maker of windows and patio doors – acquired 2002, sold 2004[13]
  • Hilding Anders – European mattress and bed manufacturer – acquired 2003, sold 2006[14]
  • Apcoa – European parking management providers – acquired 2004, sold 2007[15]
  • American Tire Distributors – the largest US independent tire distributor – acquired in 2005, sold in 2010[16]
  • Moody International – international provider of quality and safety services – acquired 2007, sold 2011[17]
  • FleetPride – North America's largest distributor of truck and trailer parts – acquired 2006, sold 2012[18]
  • ProUnlimited – United States-based software and services firm – acquired in 2014 jointly by InvestCorp & Bahrain Mumtalakat Holding Company.[19]

Real estate investment

The real estate division[20] based in New York and London, sources and performs due diligence, and arranges financing and the acquisition of US and EU 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 which are managed by the group.[21] Since 1995, Investcorp has acquired in the region of 470 properties, totaling approximately $14 billion in value. It currently has more than $5 billion of property under management.

Hedge funds

Investcorp's hedge fund business was established in 1996 and today has approximately $3.5 billion of capital under management, of which approximately $0.2 billion is reserved for proprietary investments. The fund of funds program comprises a selection of funds of hedge funds with varying risk/return profiles. These are invested across different strategies through approximately 45 hedge fund managers.[22]

In addition Investcorp has developed a single manager seeding platform, and currently offers, on a joint venture basis, access to six managers with specific strategies. The single manager platform currently has around $1.8 billion in client and proprietary assets under management.[23] In the last few years customised portfolios have grown as a proportion of the firm’s overall hedge fund assets under management, with traditional fund-of-funds reducing.[24](subscription required)

16% of the hedge fund business is invested through fund of funds.[25] The remainder is invested through customized investments, seeding businesses and a single manager platform. The hedge fund business also 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.[26]

Credit management

Investcorp Credit Management has assets under management of over $11 billion. Based in London, New York and Singapore, they manage funds which invest primarily in senior secured corporate debt issued by mid and large-cap corporates in Western Europe and the US.

References

  1. ↑ "About us". www..investcorp.com. Retrieved August 29, 2018.
  2. 1 2 Khalaf, Roula (2008-07-29). "Investcorp's plan to ride out the tough times". FT.com. Retrieved 2013-10-04.
  3. ↑ "Buyout firm Investcorp moves to mainstream fundraising strategy". Efinancialnews.com. 2010-04-05. Retrieved 2013-10-04.
  4. ↑ "Investcorp goes home – Real Deals". Realdeals.eu.com. 2007-12-11. Retrieved 2013-10-04.
  5. 1 2 "Investcorp Technology Partners raises $500m fund – Real Deals". Realdeals.eu.com. 2008-01-28. Retrieved 2013-10-04.
  6. ↑ "Jam today, jam tomorrow". The Economist. 2008-02-28. Retrieved 2013-10-04.
  7. ↑ "International banking, finance, capital markets news & analysis". Euromoney. Retrieved 2013-10-04.
  8. ↑ "PEI 300 2011 – Top 50 – PEI". Peimedia.com. Retrieved 2013-10-04.
  9. ↑ "In Times of Trouble". Forbes. Retrieved 2013-10-04.
  10. ↑ "PEI Manager Archive 2008". Private Equity Manager. 2013-09-30. Retrieved 2013-10-04.
  11. ↑ WikiLeaks says funding has been blocked after government blacklisting | Media | The Guardian
  12. ↑ "Investcorp sells Neptune for $475m – PE Asia". Privateequityasia.com. Retrieved 2013-10-04.
  13. ↑ Smith, Peter (2005-08-29). "Investcorp reports rise in net income". FT.com. Retrieved 2013-10-04.
  14. ↑ "Candover beats Texas Pacific in Hilding Anders deal". Efinancialnews.com. 2006-10-26. Retrieved 2013-10-04.
  15. ↑ "Investcorp: Apcoa geht an Eurazeo – manager magazin". Manager-magazin.de. 2007-02-19. Retrieved 2013-10-04.
  16. ↑ "American Tire Distributors Holdings Announces Acquisition By". Bloomberg. 2010-04-21. Retrieved 2013-10-04.
  17. ↑ Gray, Alistair (2011-03-08). "Intertek in £450m Moody International deal". FT.com. Retrieved 2013-10-04.
  18. ↑ Hillary Canada (2012-10-09). "FleetPride Motors Over to Its Latest Private Owner, TPG". Pevc.dowjones.com. Retrieved 2013-10-04.
  19. ↑ Bahrain's Investcorp, Mumtalakat buy U.S. workforce services firm PRO Unlimited | Reuters
  20. ↑ http://www.privateequityrealestate.net/resources/PERE%2007/JulyPERE07_lowresfinal.pdf
  21. ↑ "CORRECTED – Investcorp launches $1 bln U.S. real estate debt fund | Reuters". Uk.reuters.com. 2008-09-22. Retrieved 2013-10-04.
  22. ↑ "Investcorp eyes overlooked hedge funds". Reuters. 2010-05-20. Retrieved 2013-10-04.
  23. ↑ "Hedge fund Prosiris Capital secures assets from Investcorp and place on single manager platform". Opalesque. Retrieved 2013-10-04.
  24. ↑ "Customised solutions help to grow Investcorp's institutional following". HedgeFund Intelligence. 2009-11-05. Retrieved 2013-10-04.
  25. ↑ "Deepak Gurnani: How a "risk master" addresses hedge funds' "average" risk management – Opalesque TV". opalesque.tv. Retrieved 2014-01-26.
  26. ↑ "Investcorp Research: The great misallocation – larger hedge funds are not safer than emerging managers". Opalesque TV. 2011-12-23. Retrieved 2013-10-04.


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