Bahrain's Investcorp H1 net profit soars

  • Share via facebook
  • Tweet this
  • Bookmark and Share

Bahrain-based alternative investment manager 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.

Investcorp, which sold truck and trailer parts distributor FleetPride to TPG for over US$1bn in November, made a net profit of US$39.2m in the first half of fiscal year 2013, compared with US$5.2m a year earlier.

Fee income for the period rose 80 percent to US$147.6m, driven by strong acquisition and placement activity, the company said in a statement on Wednesday.

"The rise in net profit was driven primarily by an increase in fee-based income that we earned mainly associated with deal activity through acquisition placement and exiting deals," the firm's Chief Financial Officer Rishi Kapoor told reporters in a conference call.

Investcorp, which previously took public luxury brands Gucci and Tiffany & Co, had US$11.5bn in assets under management as of December 31, 2012.

Total assets at the end of 2012 were US$2.7bn, unchanged from the previous fiscal year end, the company said.

The company, which raised a US$529m-equivalent loan aimed at refinancing debt in June last year, has no immediate plans to access the debt market again in the coming six months but remains opportunistic, Kapoor said.

Kapoor confirmed that the company is offering German insulation firm Armacell for sale but declined to give further details.

The sale of Armacell by Investcorp has attracted six bidders as interest grows in companies making energy-efficient products, two people familiar with the transaction said.

Private equity investors Charterhouse, Pamplona, Equistone, HgCapital, Goldman Sachs Private Equity as well as a US-based producer of building materials have placed tentative bids, the people said, adding final bids are due in mid-March.

Investcorp may raise new money from investors in 2013 and expects its US$1bn Gulf fund to be fully invested by end-July, the president of the company's Gulf business told Reuters last week.

The company had bought US information security firm FishNet Security from private equity firm Lake Capital.

Join the Discussion

Disclaimer:The view expressed here by our readers are not necessarily shared by Arabian Business, its employees, sponsors or its advertisers.

Please post responsibly. Commenter Rules

  • No comments yet, be the first!

Enter the words above: Enter the numbers you hear:

All comments are subject to approval before appearing

Further reading

Most Discussed
  • 54
    Three UAE women attacked with hammer at London hotel

    I really feel that Arabian Business.Com should now close this comments page. This should be all about sympathy for the families not what it is/has turned... more

    Wednesday, 16 April 2014 1:06 PM - Adrienne
  • 51
    Why Dubai isn't a plastic city

    What is definitely not a plastic city. The Arabs have a culture dating back to several centuries. 50 years back Dubai was just a fishing village. Today... more

    Tuesday, 8 April 2014 3:49 PM - P. MADHUSUDAN
  • 48
    DMCC boss Ahmed Bin Sulayem entertains Robert Mugabe in Dubai

    @fga ''However today, simply because he decided to dispossess a few white farmers of their land and redistribute to the poorer indigenous blacks'' more

    Sunday, 13 April 2014 3:02 PM - Matt Williams