Investcorp reports net profit of $56.2 million

Bahrain bourse-listed alternative investment firm, Investcorp, has reported $56.2 million in net income for the six months period, a statement said.

There was a $37 million increase in value of the corporate investment portfolio, reflecting the firm’s effective stewardship of its portfolio companies through the recession, and an encouraging uplift in the value of its US real estate portfolio as that market starts to recover, the statement announcing the results for the first half of its fiscal year 2011 (6 months ended December 31, 2010) said.

Hedge funds provided an attractive, albeit more normalized, level of absolute returns of 7.1 per cent in the period. Investcorp also added a new single manager, Ballast Capital, and now offers six single manager funds to clients.

Investcorp completed several profitable realizations from its portfolio of corporate and real estate investments with total distributions to investors of $405 million. The firm also concluded several new and add-on investments with attractive return profiles.

New corporate investments included a $52 million investment in FleetMatics, which acquired a competitor (SageQuest), add-on acquisitions by Berlin Packaging, FleetPride and Redington Gulf, and a $50 million investment in Tiryaki Agro, Turkey’s leading agricultural trader and supply chain manager. The real estate unit acquired a mixed-use development in Princeton, New Jersey, the statement added.

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