Investcorp will invest $98 million in Redington India to gain a 36 percent stake in the company’s Middle East and Africa business.
The firm will make the investment through its $1.1 billion Gulf Opportunity Fund I, which was launched in 2007, according to a source close to the situation. The transaction is expected to close by the middle of November.
Redington India distributes information technology-related products throughout India and globally. The company also provides technical call center service and operates call centers.
A spokesman for Investcorp declined to comment.
Investcorp’s Gulf growth opportunity fund was launched as part of the firm’s creation of the Gulf growth capital business. The fund is meant to have a 10-year life and hold investment stakes for four to five years. It is unclear whether the fund has closed, but as of 31 March the fund had $825 million and now has $1.1 billion.
Investcorp, which is listed on the stock exchanges of Bahrain and London, has more than $17 billion in invested assets under management. The firm has five lines of business: private equity, hedge funds, real estate, technology and Gulf growth capital. Investcorp has office in Bahrain, London and New York.
The firm targets buyout opportunities from corporate divestitures of non-core assets, family business divestitures and privatisations. The firm’s Gulf growth business focuses on mid-sized infrastructure and manufacturing and the service sector.