Canadian investment group to acquire stake in Investcorp-backed advisory ICR

Quebec-based CDPQ will buy a sizeable stake in ICR, while Investcorp will continue to remain an investor in the company

Canada's global investment group CDPQ will acquire a stake in Investcorp portfolio company ICR. Courtesy Investcorp

Canadian global investment group Caisse de dépôt et placement du Québec (CDPQ) plans to acquire a significant stake in communications and advisory provider ICR, which is backed by Bahrain-based Investcorp.

Investcorp, the alternative asset manager that counts Mubadala Investment Company as its biggest shareholder, owns a minority stake in ICR and will continue as an investor in the company, Tarek AlMahjoub, Head of UAE and Oman for Investcorp’s Private Wealth, said in a statement on Tuesday.

“ICR is a market leader in strategic communications and advisory solutions. We believe that CDPQ’s investment will add further depth to what the firm can offer and we look forward to partner with them as they enter a new chapter of growth,” Mr AlMahjoub said.

CDPQ has created a $250 million investment fund to be deployed over four years to increase diversity and inclusion in companies in Quebec and Canada, according to its website.

Investcorp did not disclose the value of the deal and said that the transaction is subject to customary regulatory approvals.

The fund manager invested in ICR – the US communications and advisory services company – in 2018 for an undisclosed sum to focus on accelerating the company’s organic growth, identifying complementary acquisitions and expanding the business globally.

ICR provides services across investor relations, public relations, transaction advisory, environmental, social and governance and digital branding, Investcorp said.

With assets worth more than $37 billion under management, Investcorp is looking to double its asset base to about $75bn over the next five to seven years, the company’s co-chief executive, Rishi Kapoor, told The National in July.

Investcorp’s US portfolio is expected to account for about 45 per cent to 50 per cent of its assets under management in that period, he said at the time.

Established more than four decades ago, Investcorp has grown to become one of the leading alternative asset management companies in the region, investing across a range of asset classes and countries. The company has been on an acquisition spree during the pandemic to capitalise on lower asset valuations and is bullish on the prospects of growth for its portfolio.