Profits up as Investcorp clears assets

Investcorp said profits for the first half of fiscal year 2013 rose on the back of increased fee income and profitable exits at its investment portfolio.

NEW YORK, NY - APRIL 12:  Watches and jewelry are displayed at a Georg Jensen store during a reception for Madison Avenue Watch Week on April 12, 2011 in New York City. The week-long celebration of 19 boutiques selling luxury time pieces along Madison Avenue includes new watch previews, artist talks and evening receptions. Following the global recession which dampened luxury goods sales, the recent economic rebound has witnessed strong growth in luxury items with retailer Tiffany & Co. reporting a gain in global sales of 14 percent to $3.1 billion in 2010.  (Photo by Spencer Platt/Getty Images)

Bahrain's Investcorp reported a sharp increase in net profits during the first half of its fiscal year as deals resumed and it exited from assets purchased pre-crisis.

The Bahraini investment firm, which once owned the luxury goods brand Gucci and the Circle K convenience store, generated net income of US$39.2 million (Dh143.9m) during the last six months of last year, compared with $5.2m during the same period a year earlier.

The firm enjoyed success in fundraising and investments during the period, said Nemir Kirdar, the chairman and chief executive.

"We have enjoyed a six-month period of almost record deal flow for acquisitions as well as exits," he said.

Investcorp's recent investments may have been less glamorous than the jewellery maker Tiffany, which it took public in 1987, but they are helping the company bounce back after the financial crisis. The earnings marked the second consecutive half-year period in which Investcorp's earnings have increased.

Successful exits during the period include FleetMatics and CCC, software providers for managing truck fleets and car insurance, and FleetPride, the biggest distributor of heavy duty truck parts in the United States, while Investcorp also acquired the American IT company FishNet Security.

Luxury goods also caught the firm's eye once again, with an acquisition of Denmark's Georg Jensen - Investcorp's first luxury investment in 20 years. The company is also said to be eyeing a return to the Italian luxury goods market.

Investcorp said this week that it was on the lookout in Italy for luxury brands seeking to expand internationally.