Investcorp forms JV with Tages Group to create investment platform with $6bn in assets

The two partners have no client overlap and the merger of their units will help expand their client relationships and geographical reach

Rishi Kapoor, co-chief executive of Investcorp says the new JV is poised for "accelerated growth". Leslie Pableo for The National

Investcorp, a Bahrain-based investment firm, formed a joint venture with European alternative asset manager, Tages Group, to create a global investment platform with more than $6 billion (Dh22bn) in revenue generating assets.

The 50-50 partnership JV, called Investcorp-Tages, is formed through the merger of Investcorp’s absolute return investments business and Tages Capital, an absolute return subsidiary of investment firm Tages, Investcorp said in a statement on Wednesday.

The new entity will have 18 investment professionals working for it, in four business units - alternative portfolio solutions, special situations portfolios, emerging managers and seeding, and a quantitative solutions arm.

Investcorp, which counts Mubadala Investment Company as its biggest shareholder, said the JV will be co-led by existing management, including Lionel Erdely, chief investment officer of Investcorp’s ARI business, and Salvatore Cordaro, founding partner of Tages Capital.

“This combination underscores Investcorp’s commitment to continue to serve our investor base with a broader array of solutions across the globe,” Rishi Kapoor, co-chief executive of Investcorp, said. “The JV with Tages will be optimally positioned for accelerated growth serving the evolving needs of investors for absolute return investments in the post-Covid landscape, with an expanded geographic footprint, deeper bench of talent and enhanced scale.”

The new entity's parents, Investcorp ARI and Tages Capital have no client overlap and combining the businesses will help expand its client relationships and geographical reach. The biggest component of the JV’s client base is in North America - approximately 40 per cent - with the rest spread fairly evenly across Europe, Asia and the Middle East, the company said.

“Our combined strengths will accelerate our objectives to drive growth,” Panfilo Tarantelli, chief executive and founding partner of Tages, said. “The availability of additional resources, a global reach and access to multiple pools of capital will enhance our ability to offer ‘de-correlated returns’ in the current volatile market environment.”

The combined businesses will benefit from a deeper product portfolio, including multi-manager portfolios across hedge funds, private debt and impact investments, seeding activities and cross-asset strategies, the company said.

Investcorp has invested in a broad range of sectors and industries. The company closed a $275 million first funding round for its food sector-focused private equity platform in April, with plans to expand its portfolio of investments. The investment vehicle aims to invest in the growing, but fragmented food sector in Asia, the company said at the time.

The Bahrain-based asset management company last month also acquired German cybersecurity company Avira for $180m.

Since its inception in 1982, Investcorp has completed over 195 private equity deals in the US, Europe, Asia, and the Mena region. It has also carried out more than 800 commercial and residential real estate investments in the US and Europe, with a total transaction value of $61bn.

In March, it acquired the Coca-Cola Company’s Belgian headquarters for €88m (Dh362m), marking its entry into the country and its first European sale and leaseback deal.