Bahrain's Investcorp has raised more than $1.25 billion from its second general partner staking fund, which it will use to acquire more stakes in private markets.
The staking arm, Investcorp Strategic Capital Group, sealed commitments comprising $1.1 billion in fund commitments and $155 million of committed co-investment capital, the Manama-based alternative asset manager said in a statement on Thursday.
The funds were committed to Investcorp Strategic Capital Partners II and its associated vehicles, which are collectively known as ISCP II.
The funding size of the second ISCP closed more than 75 per cent higher than its first iteration, owing to a "highly selective fundraising environment for private markets", Investcorp said.
That also brought ISCG's total assets under management to more than $2.4 billion, added Investcorp, which is backed by Abu Dhabi's Mubadala Investment Company.
Investcorp's fund-raising positions it as a "proven ... value-added partner of choice in the middle market across asset classes and regions", executive chairman Mohammed Alardhi said.
"We look forward to backing more talented general partners in the years ahead and expanding their reach and capabilities," he added.
Investcorp, which is known for its shareholding in Tiffany & Co and Gucci during its early years of investing, has grown to become a global investment powerhouse. The company is among several international asset managers seeking funding from local and foreign investors for their Middle East-focused funds.
Set up in 1982, Investcorp invests through its six business lines: private equity, real estate, absolute return investments, infrastructure, credit management and strategic capital. In currently manages about $60 billion in assets, including those managed by third-party managers. It has operations across the US, Europe, the GCC and Asia.
The company, which maintained a brisk pace of acquisition through the Covid-19 pandemic to capitalise on lower asset valuations, has continued its aggressive portfolio expansion since.
Investcorp is also looking to expand its North America portfolio. In its latest annual report, the company said it has completed more than 70 transactions in North America, using almost $24 billion in transaction value.
"The GP staking strategy has become a core component of investor allocations," said Anthony Maniscalco, managing partner and head of ISCG.
Investcorp also aims to raise as much as $7 billion in new funding and make exits and distribution to investors of a similar amount in the current fiscal year in a bid boost its infrastructure and credit businesses, chief investment officer Rishi Kapoor had told The National during October's Future Investment Initiative in Riyadh.
