Bahrain's Investcorp, the alternative investment management firm, posted a 5 per cent increase in full-year profit on higher fee income and record deal placement activity.
Net income for the 12 months ending June 30 rose to $131 million (Dh481m) year-on-year despite an economic slowdown and rising trade and geopolitical tensions, Investcorp said in a statement on Wednesday. Earnings per ordinary share increased 13 per cent to $1.47 for the fiscal year.
"Our strong full-year results and ability to deliver on several strategic initiatives demonstrate Investcorp’s resilience and focus on strategic growth and profitability goals, despite various economic and geopolitical challenges," Mohammed Alardhi, executive chairman of Investcorp, said.
The Manama-based firm, which counts Abu Dhabi's Mubadala Investment Company as its biggest shareholder, proposed a $0.30 per share dividend for the fiscal year. The company's assets under management increased to $28.2 billion during the financial year as it pursues a strategy of reaching $50bn over the medium term through organic and inorganic growth.
"Our ambitious growth strategy...over the medium term is unchanged as we remain focused on delivering profitable growth, while retaining a prudent approach to balance sheet and liquidity management," Mr Alardhi added. "We are well-positioned to continue delivering superior shareholder value and interesting investment opportunities for our clients."
Fee income rose 17 per cent to $376m during the fiscal year as asset under management fees and deal fees grew.
Deal placement reached record $1.4bn, up 29 per cent from a year ago, reflecting strong client demand in both private equity and real estate.
The company's operating expenses increased to $268m, up 5 per cent year-on-year, leading to a cost-to-income ratio of 65 per cent.
Investcorp's private equity investment in the fiscal year rose 37 per cent to $750m, while total placement and fundraising activity more than tripled to $1.8bn.
"Investcorp’s private equity business saw strong levels of activity over the period as client appetite remained strong and valuations have been supportive of realisations," the company said.
Investcorp's real estate business also grew, driven by its US and European portfolios. Real estate investment activity was up by 19 per cent to $670m year-on-year.
Moody's Investor Service assigned Investcorp's credit rating at Ba2 and a stable outlook while Fitch assigned it BB with a stable outlook.
Since its establishment in 1982, Investcorp has made over 185 private equity deals in the US, Europe, the Middle East and North Africa region and Asia, across a range of sectors including retail and consumer products, technology, business services and industrials. It made more than 650 commercial and residential real estate investments in the US and Europe, for more than $60bn in transaction value.
Investcorp employs 427 people across its offices in Bahrain, New York, London, Abu Dhabi, Riyadh, Doha, Singapore, and Mumbai.