Investcorp’s asset mix proves record hit

The Bahrain-based alternative assets manager has enjoyed a record year of profits, while returning $1.2bn to investors in its private equity deals.

Investcorp, a Bahrain based alternative asset management firm, has delivered a record net profit for the year ended 30 June, 2006 of $130.8 million (€103.3 million) up 18.6 percent over the previous year.

Income before operating expenses was at $370.2 million.

In private equity, Investcorp completed five realisations including Minimax, a fire protection services business; Saks, a US retailer and Stahl, a chemicals company, and one partial realization, Stratus, an IT company. It returned $1.2 billion in proceeds to investors, it said in a statement.

There were five new acquisitions, Autodistribution, a spare parts distributor, and Orefi, an industrial supplies distributor, in France, Time Partner in Germany, and CCC, an information services company, and FleetPride, an auto parts distributor, in the US.  The deals had an aggregate transaction value of $2.4 billion and deployed $796 million in equity.

Its venture capital team completed four profitable realizations, including the first one from Technology Fund II and made seven new investments. 

It said its real estate arm had another good year. “We realized 15 properties, returning $153.7 million to investors. We acquired 46 new properties, deploying a record $306 million in equity. Four new portfolios were placed with investors, whose demand for our real estate product remains very high,” it said in a statement.

It added $314 million to its hedge funds business, taking its total client assets under management to more than $2.6 billion.

The firm’s distribution team placed $1.7 billion of Investcorp products this year with $1.4 billion placed with investors in the Gulf. It continued to diversify fundraising into international markets outside the Gulf region, in particular the United States.