Investcorp starts $1bn fund focused on high-growth Gulf and China companies

Bahrain’s Investcorp has teamed up with China’s sovereign wealth fund to launch a $1 billion fund that will invest in high-growth companies in Saudi Arabia, other GCC countries and China.

The Investcorp Golden Horizon platform will be anchored by institutional and private investors from the Gulf, as well as the China Investment Corporation, said the alternative asset manager that counts Mubadala Investment Company as its biggest shareholder.

Target companies are expected to have high growth potential in sectors such as consumer, health care, logistics and business services, it added.

“This commitment by CIC is a testament to Investcorp’s franchise in the GCC,” Mohammed Alardhi, executive chairman of Investcorp, said. “We are looking forward to growing our partnership in the future.”

Established more than four decades ago, Investcorp is currently one of the leading alternative asset management companies in the region.

The company went on an acquisition spree during the Covid-19 pandemic to capitalise on lower asset valuations and continued its aggressive portfolio expansion in 2022.

With $52 billion in assets under management, Investcorp is an active investor in mid-market companies across consumption-linked sectors.

It aims to double its assets under management to $100 billion in the coming years.

Investcorp has 14 offices across the US, Europe, the GCC and Asia, including in India, China and Singapore.

Last November, it listed its subsidiary Investcorp Capital on the Abu Dhabi Securities

Exchange after raising Dh1.66 billion ($451 million) by selling 720 million ordinary shares or 32.85 per cent of its total issued share capital.

It also launched a $750 million climate-focused investment platform last December.

“During the past couple of years, we have built several bilateral funds with leading financial institutions to facilitate industrial co-operation between China and major economies in the world,” said Bin Qi, executive vice president and deputy chief investment officer of CIC.

The Investcorp Saudi Pre-IPO Growth Fund, which is part of the $1 billion platform, has already announced three investments in the GCC, the company said.

The fund is dedicated to investing in companies that are at the pre-initial public offering stage of development, Investcorp said in 2021 at its launch.