INVESTCORP GAINS FROM RETURNS AND FEE RISE
▶ Asset manager’s board proposes a full-year dividend of $0.24 per share
Investcorp, an alternative investment manager that counts Abu Dhabi’s Mubadala Investment Company as its biggest shareholder, reported a 4 per cent year-on-year rise in its fullyear 2018 profit. The earnings were boosted by realisation of investments in the United States and Europe, and a rise in fee income from assets under management.
Aggregate net income for the 12-month period ending June 30, climbed to $125 million (Dh459,1m), with fully diluted earnings per share also rising 4 per cent to $1.30, the company said in a statement yesterday. Net income for the second half of financial year 2018 came in at $70m, slightly lower than $72m reported for the same period a year earlier, it said.
Investcorp’s board proposed a full-year dividend of $0.24 per ordinary share, the company headquartered in Bahrain said.
As the company maintains the growth momentum, it continues to report “strong performance” across a range of our key indicators, said Mohammed Alardhi, Investcorp executive chairman.
“Our robust balance sheet, experience and expertise will enable us to take advantage of interesting investment opportunities globally and allow us to continue the growth trajectory that we have set.”
The company’s assets under management increased 6 per cent to $22.6 billion during the period. Since its inception in 1982, Investcorp has made over 170 corporate investments in the US, Europe and the broader Middle East and North Africa region, including Turkey.
The company has invested across a range of sectors including more than 450 commercial and residential real estate investments in the US, with transaction values exceeding $55bn.
Mubadala, a strategic investment arm of Abu Dhabi, owns a 20 per cent stake in Investcorp.
The company is now exploring investment opportunities in China, India and Saudi Arabia as it expects assets under management to reach $50bn within the next five to seven years, its co-chief executive, Rishi Kapoor said, according to Reuters.
Investcorp’s Credit Management business, during the last financial year, helped push a 27 per cent rise in recurring income derived from AUM to $173m. Asset based income also grew by 30 per cent to $133m, primarily driven by successful corporate investment realisations.
Investment activity during the financial year 2018 climbed 36 per cent to $2.8bn, while total placement and fundraising activities rose by 77 per cent $7.3bn as distributions to clients more than doubled to $7bn.
This year “has presented a number of geopolitical and economic challenges, particularly in the Gulf region, yet fundraising activity remains high”, Mr Alardhi said.
“There is an impressive pace of capital being deployed, and we have significantly expanded our global investor base.”
The company raised $580m from investors during the fullyear with $789m returned in distributions.
Its corporate investments business remained solid with three new deals totalling $406m, two follow on funding deals. Another $75m was invested through and alongside Investcorp’s Technology Funds III and IV and a further $48m invested in two special opportunities, it said.