Investcorp, an alternative asset manager that counts Mubadala Investment Company as its biggest shareholder, has distributed $1.2 billion in total to its GCC-based investors over the past 12 months, driven by “several value realisation initiatives”.
The investment realisations were across asset classes, including recent exits from its private equity platform in the US, the company said on Monday.
As part of its private equity strategy, the company invests in “mid-market business services companies with long-term growth drivers, high cash-flow generation and minimal capital intensity, targeting industries that have demonstrated resilience throughout economic cycles”, it said.
“Investcorp is focused on selecting companies that we believe are well placed to outperform their peers and adapt to changing market conditions, in addition to demonstrating innovation and setting the pace in their sectors,” said executive chairman Mohammed Alardhi.
“Since we launched our growth strategy in 2015, we have identified businesses based on their growth potential and this approach has led to great returns for investors.
“The significant distributions reflect our ability to continue to drive value during challenging periods in the market cycle.”
Since it was founded in 1982, Investcorp has completed more than 70 private equity transactions in the US, investing more than $22 billion in transaction value.
Its North American investments across asset classes comprise $21 billion of its overall $50 billion assets under management.
This month, the company said it had raised more than $1.2 billion from its inaugural North American private equity fund.
Blue-chip institutional investors such as pension plans, family offices, private wealth funds and an insurance company participated in the North American Private Equity Fund I.
The company is focusing on family and founder-owned businesses across six sub-sectors, including technology-enabled, knowledge and professional, data and information, supply chain, industry and speciality consumer services as part of its investment strategy, it said.
The fund currently has seven investments within its portfolio.
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Investcorp went on an acquisition spree during the Covid-19 pandemic to capitalise on lower asset valuations and continued its aggressive portfolio expansion in 2022.
The company has carried its deal-making momentum into 2023 and said in January that it plans to invest up to $1 billion in the GCC property market over the next five years.
In February, it also entered the Japanese market to source deals in Asia’s second-largest economy.
The office in Tokyo is part of Investcorp’s global expansion drive as it looks to boost its investment portfolio and increase its assets under management, the company said.
“Our investors are looking for alternative investment opportunities with attractive risk-adjusted returns,” said Yusef Al Yusef, head of Investcorp’s private wealth.
“Our most recent private equity exits demonstrate our strategy of partnering with companies’ management teams to accelerate their growth throughout the length of our ownership, both organically and through add-on acquisitions.
“Our approach has provided our existing investors with attractive returns on their investments.”
