Investcorp sustains profitability for 3rd year in row

Nemir Kirdar Investcorp
Nemir A. Kirdar, Executive Chairman and CEO Investcorp
Investcorp, a leading provider and manager of alternative investment products, on Tuesday said that it had delivered $649 million in proceeds from realisations and other contributions during its fiscal ended on June 30, 2012.

The bank also said it would continue investing in Europe and USA as part of its strategy to add value to its investors’ portfolio.

Nemir A. Kirdar, Executive Chairman and CEO Investcorp, who presided over the Investcorp’s 29th annual general meeting at bank’s headquarters in Manama, told reporters that Europe would continue to be an investment option for the bank despite overall economic turmoil.

“Investcorp has expertise in certain lines of businesses, for example, we only invest in real estate in the US market it doesn’t mean there are no similar opportunities in other markets but we don’t have expertise in those markets. Similarly, Investcorp invested in Spain but again it was a lucrative business and we didn’t invest in sovereign bonds in crisis hit Europe,” Kirdar, explained.

Kirdar told shareholders Investcorp results demonstrates bank’s solid franchise in the Gulf.

Kirdar said that bank had raised $1.3b funds from the investors in the GCC and USA during the period with $900 million from the US and $400 million from the GCC markets.

The media briefing was also attended by Mohammed Al-Shroogi, President, Gulf Business; and Rishi Kapoor, Chief Financial Officer.

“Our profitability for the third consecutive year since the financial crisis showcases the robustness of our business model and network, and the continued investor appetite for attractive alternative investment opportunities. We saw a significant increase in acquisition and placement activity, which resulted in a growth of 20% year-on-year in our fee income. We have also completed a new $529.0 million forward start loan facility to refinance debt maturing in March and April 2013, which received strong support from leading international and Gulf banks,” Kirdar, said.

“As a result of our continuously positive performance, I’m pleased to report that Investcorp’s Board of Directors has approved a dividend of $7.50 per share for ordinary shareholders, in addition to a preference share dividend of 12%,” he added.

This annual general meeting was held to approve, among other things, the Board of Directors’ report, the auditors’ report and the audited financial statements for the year ended June 30, 2012; and the reappointment of Ernst & Young as the external auditors for FY 2012.

Investcorp is a leading provider and manager of alternative investment products. Investcorp has offices in the Kingdom of Bahrain, London and New York and is publicly traded on the Bahrain Bourse (INVCORP). Investcorp has three business areas: corporate investment in the US, Europe and MENA, real estate investment in the US and global hedge funds. As at June 30, 2012, Investcorp had $11.5 billion in assets under management.

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