Bahrain's Investcorp sees 23% jump in deals to $571m

Alternative investment firm reports 5% increase in net income despite 'challenging macroeconomic environment'
Bahrain's Investcorp sees 23% jump in deals to $571m
Assets under management remained stable at $22.5 billion, says Investcorp.
By Sam Bridge
Tue 05 Feb 2019 02:08 PM

Bahrain-based Investcorp has reported a 5 percent increase in net income to $58 million for the six months ending December 31.

The global provider and manager of alternative investment products said the rise came despite a "challenging macroeconomic environment".

Deal by deal placement for the period was $571 million, up 23 percent compared to $463 million in the year earlier period, reflecting strong client demand in both private equity and real estate, the company said in a statement.

The results comes as Investcorp is undertaking a restructuring plan to be more aligned with its global asset management peers.

Mohammed Alardhi, executive chairman, said: “Our improved first half results are a testament to Investcorp’s ability to perform well despite ongoing challenges in global markets.

"This is due to our determination to expand globally, to increase our commitments from institutional clients, and to offer more products to our clients."

He said Investcorp had achieved several firsts during the six month period - its first private equity investment in China, its first acquisition of a private equity investment to be fully placed in the US and its first foothold into India.

“We will remain focused on achieving our ambitious growth targets of reaching assets under management of $50 billion in the coming years while prudently managing our balance sheet and liquidity, and we are well positioned to continue delivering shareholder value and interesting investment opportunities for our clients,” he added.

Gross operating income was $199 million in the review period compared to $208 million a year ago while fee income was $150 million, up 7 percent and deal fees increased to $67 million, up 10 percent. This was offset by lower asset-based income of $49 million compared to $68 million a year ago, largely attributable to lower private equity and absolute investment returns.

Assets under management remained stable at $22.5 billion as compared to $22.6 billion at June 30 while Investcorp said it remains well capitalized with total assets of $2.4 billion and total equity of $1.1 billion as of December 31.

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