Investcorp targets deals with Mubadala stepping on board

Investcorp plans to forge ahead with deal-making after posting a 45 per cent plunge in first-half net profit.

Investcorp plans to forge ahead with deal-making after posting a 45 per cent plunge in first-half net profit, the Bahrain-based alternative investment firm said.

The alternative investment manager has a capital base of $1 billion and accessible liquidity exceeding $800 million that will help to fuel growth through acquisitions, the company said in a statement.

“The firm is well positioned to support its organic growth objec­tives and act rapidly to pursue inorganic acquisition-led growth opportunities with a few such options currently under consideration,” said the company.

Net profit in the six months to June 30 fell to US$39.2 million compared with $71.4m a year earlier. Net profit for the full fin­ancial year ending June 30 also declined 23 per cent to $90m compared with $116.7m a year earlier.

The decline in earnings was “predominantly attributable to an increase in operating expenses from Investcorp’s investment in the requisite resources and infrastructure to support the firm’s medium term growth strategy,” the company said.

Abu Dhabi investment firm Mubadala plans to hold a 20 per cent stake in Investcorp to become the largest single investor in the Manama-listed company.

Investcorp is seeking institutional investors, initially from the Gulf, as part of plans to boost assets under management to $25 billion in five to seven years from about $11bn now, Mohammed Al Ardhi, Investcorp’s executive chairman said last month. Currently, it has institutional investors from Bahrain, Qatar and the UAE.

With Mubadala now on board, Investcorp is eyeing bigger deals and co-investments with the Abu Dhabi fund.

dalsaadi@thenational.ae

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Published: August 11, 2016 04:00 AM

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