Bahrain-based alternative investment fund
Investcorp posted a 25 percent gain in annual net profit on Monday, boosted by
a resurgence in private equity activity in the region.
Net profit rose to $131.2 million in the year ended
June 30, Investcorp said, citing higher activity in acquisitions, sales of
investments and the raising of new funds.
The activity reflects a return to deal-making by
Middle Eastern private equity firms after the global financial crisis, when
many were stuck with investments made at high premiums during the preceeding
boom and the trading of companies dried up.
Investcorp said it returned around $1.3 billion to
investors from sales in eight firms, including stakes in German insulation
materials company Armacell and online payments business Skrill Group - which it
sold to CVC Capital Partners for 600 million euros in August.
It also made a number of new investments totalling
$609 million, including in U.S.-based accessories brand Totes Isotoner Corp and
U.K.-based snack food maker Tyrrells, and was linked to high-profile deals for
Italian fashion brands Versace - in which it lost out to Blackstone - and
Roberto Cavalli, which it walked away from in June.
Funds raised by Investcorp totalled more than $1.9
billion in the last financial year, it said, up 21 percent on the previous
Investcorp said fully diluted earnings per ordinary
share jumped 84 percent over the prior-year period to $129, while the return on
equity was 16 percent - up from an average 11.4 percent per annum over the last
Investcorp said its board had proposed paying a
dividend of $15 per ordinary share, with a full dividend of 12 percent on
The payout for ordinary shareholders is in line
with the previous financial year, according to Thomson Reuters data.
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