Investcorp achieves impressive rebound with $102m profit for 2010

Nemir Kirdar InvestcorpInvestcorp, Bahrain-based, the asset management firm specialising in alternative investments, on Tuesday said that the firm achieved $102.2 million profit for the fiscal year of 2010.

Nemir A. Kirdar, Executive Chairman and CEO, Investcorp, who also presided over the 27th annual general assembly which ratified the financials, termed the results an impressive and rapid rebound following the two difficult years which saw a major damage due to financial meltdown.

“The 2010 financials have proved the mettle of the Investcorp and showed that the firm has significant placement power by acquiring new businesses even during the difficult times,” Nemir told a Press conference, following the meeting of the shareholders.

“Having made $102.2 million of profit for our 2010 fiscal year we have achieved an impressive and rapid rebound from the challenges of our last fiscal year, and we now have strong upward momentum as we move ahead. The past two years have seen unprecedented stress in global economies and financial markets, and our profitability this year proves the robustness of our business model and the enduring power of our Gulf franchise and relationships. This rebound also demonstrates the effectiveness of the bold and decisive action management has taken to reshape the firm to meet changing conditions and to exploit opportunities that are arising as the world economy resets itself. It also shows the real difference Investcorp’s market position and reputation can make in this more difficult investing environment as our clients recognize the pre-eminent importance of sound advice, first class service, transparency and clear alignment of interests.”

“The success of the 2010 lies in the flow and pattern of the business as the firm has acquired many projects and also existed successfully during this year, adding a value to the shareholders equity. The damage from the crisis was so big that after two years nobody can say with a certainty that the global economy was back to normal,” Nemir said.
Namir was joined by Mohammed Shroogi President of Gulf Business and Rishi Kapoor CFO and the panel highlighted the salient features of the new business model of Investcorp, the 27 year old institution with $12.7 billion in total assets under management as of June 30, 2010.

“In 2010 all business lines yielded positive results, showing the robust business model backed by a strong team. We have good recovery and wonderful business year with strongest balance sheet ever,” he said.

Talking about the lessons learned from the crisis Nemir said the first and foremost lesson would be that no company should be over-leveraged and every organization should be adequately capitalized.

“The companies should have enough capital base to justify the sky rocketing profits and last not the least the health of the balance sheet should never been compromised,” he said.

“With the changed focus of our business model now the businesses in the GCC are one of the main target areas as we have business interests in the UAE, Kuwait and Saudi Arabia, the region’s largest economy,” Mohammed Shroogi said.
“We are planning to see a major deal concluded soon in Turkey in agriculture sector,” Shroogi added.

Investcorp plans to secure a deal in agri sector in Turkey by using the equity from its $1 billion Gulf Opportunity Fund.

The shareholders also approved the appointment of 14 members of the board for a three-year term.

Investcorp is a leading provider and manager of alternative investment products.

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