Investcorp Capital posts fall in annual net profit

Company's revenue from capital financing services rose 9 per cent to $49 million

Investcorp Capital, a unit of Bahrain-based Investcorp, has invested more than $263 million across its asset classes in the last fiscal year. Photo: Investcorp

Asset manager Investcorp Capital reported a 7 per cent decline in its net profit for the fiscal year ended June 30 on lower interest income, although revenue from capital financing rose during the period.

Net profit reached $105 million, the company said in a statement on Tuesday to the Abu Dhabi Securities Exchange, where its shares are traded.

While interest income fell more than 22 per cent year-on-year to $7 million, revenue from capital financing services rose nearly 9 per cent to $49 million and revenue from capital deployment rose 5.5 per cent to $76 million.

The company has delivered “a strong inaugural set of full-year results since our listing in November 2023”, Mohammed Alardhi, chairman of Investcorp Capital, said.

“During the period, we have paid our dividend distribution in line with our commitment to investors and have expanded into the infrastructure asset class, as seen through our redevelopment project at New York’s JFK International Airport Terminal 6.”

Investcorp Capital, a unit of Mubadala Investment Company-backed Investcorp, approved $115 million in dividends for the year, of which $60 million have been paid, representing an annualised return of 13 per cent for public shareholders since its listing last year, according to the statement.

Mohammed Alardhi, chairman of Investcorp, in discussion at Abu Dhabi Finance Week last year. Khushnum Bhandari / The National

Investcorp Capital began trading on the ADX on November 17 following an initial public offering that raised Dh1.66 billion ($451 million) with strong demand from local and international investors.

The company has invested more than $263 million across its asset classes and geographies during the last financial year, it said on Tuesday. This includes $158 million in corporate investments, $72 million in global credit, $24 million in real estate and $9 million in strategic capital.

It has also invested $883 million in capital financing services during the period.

This year, the company agreed to invest in the $4.2 billion redevelopment of New York’s JFK International Airport’s Terminal 6 through its newly formed partnership with Corsair Capital – Investcorp Corsair Infrastructure Partners.

The airport redevelopment plan will replace Terminal 7, delivering a 1.2 million-square-foot terminal including 10 gates with waiting areas in addition to more than 100,000 square feet of commercial amenities, airline lounges, and two AirTrain stations.

“Our balance sheet continues to be robust and well diversified, with 70 per cent invested in cash-generating assets,” Rohit Nanda, chief financial officer of Investcorp Capital, said.

The financial results come as parent company Investcorp, which has $52 billion in assets under management, announced changes to its leadership last week as it embarks on the next phase of its growth.

As part of the reshuffle, the company is handing over more control to Mr Alardhi as Hazem Ben-Gacem, the co-chief executive of the company, will be leaving after three decades from November 1.

Rishi Kapoor, who was co-chief executive, has been appointed as vice chairman and chief investment officer.