Investcorp transfers two companies to new fund as it seeks growth

Investcorp of Bahrain, which counts Mubadala Investment Company as its biggest shareholder, said its technology unit had transferred two of its portfolio companies with enterprise value of $185 million (Dh678.95m) to a continuation investment fund.

An alternative investment management company, Investcorp has joined hands with HarbourVest, a private markets investment specialist, which supports the Investcorp Secondary Fund 2018, it said yesterday.

“This commitment from HarbourVest demonstrates their belief in us as one of the leading lower mid-market investors,” said Hazem Ben-Gacem, Investcorp’s co-chief executive.

By concluding this transaction, Investcorp will have the opportunity to maximise the value creation potential of the two transferred companies. They were previously a part of the Investcorp Technology Partners Fund III portfolio. The companies will now have active support and fresh capital over an additional holding period under continued management.

“Our third technology fund has performed very well in the recent years,” Mr Ben-Gacem said. “We look forward to realise further growth.”

Investcorp, in which Abu Dhabi’s Mubadala has a 20 per cent stake, has been on an acquisition spree in the last few months.

Last September, the company said it was investing as much as $250m in the Chinese market, its first foray into the world’s second-biggest economy.

In the same month, it acquired a minority stake in Swissregulated Banque Paris Bertrand Sturdza for an undisclosed sum.

Investcorp is snapping up assets as it seeks to nearly double its assets under management to reach $50 billion in the medium-term from $22.6bn at the end of June 2018.

In 2017, the company acquired a $12bn AUM credit management business now known as Investcorp Credit Management.

The company has invested across a range of sectors including more than 600 commercial and residential real estate investments in the US.