Investcorp posts $39.2m profits for H1

Investcorp, a global provider and manager of alternative investment products, today announced that net income for the first six months ended December 31, 2012 rose to $39.2 million as compared to $5.2 million the same period last year, representing progress across all business activities.

Investcorp delivered strong growth in its overall performance for the period despite continued economic uncertainty in the EU and US, with gross operating income for H1 2013, rising by 65 per cent versus the comparable period last year, to $152.9 million. Fee income increased by 80 per cent to $147.6 million, driven by strong acquisition, realization and placement activity.

Investcorp reported $793 million in new fund-raising during the period, its strongest performance on this front since the onset of the financial crisis in 2008. $204 million was raised in corporate investment deal-by-deal placements, $73 million in real estate through the placement of two portfolios, and $516 million was raised in new hedge funds subscriptions from institutional investors. Investcorp’s continued success and traction in fundraising demonstrates the ongoing commitment and long term loyalty of its investor base. At the same time, Investcorp returned $1.1 billion in proceeds from investment realizations and distributions to Investcorp and its clients, roughly 2.7 times the $412 million returned in H1 FY12.

During the period, Investcorp further strengthened the liquidity and funding profile of its balance sheet with a successful $250 million bond issue in November 2012. Reflecting Investcorp’s global business footprint, the profile of bond investors was geographically well-diversified with 46% from Europe, 27% from the Middle East, 15% from Asia and 12% from the United States. The bond issue followed on from a successful $529 million loan financing in June 2012, ensuring that with no near term debt maturities after utilizing a portion of this financing, Investcorp has ample financial flexibility in place to drive long term growth.

Nemir A. Kirdar, Executive Chairman & CEO, said: “I am delighted to report a robust start to fiscal 2013. We have enjoyed a six month period of almost record deal flow for acquisitions as well as exits. We have delivered strong growth across our business both in terms of profitability and fee income with our fundraising initiatives enjoying their strongest performance yet since the global financial crisis of 2008-09.

“Our balance sheet is well-positioned, with the necessary funding in place to meet our long-term objectives in line with our commitment towards generating maximum value for our shareholders and investors.”

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