Investcorp, the alternative investment banking major, on Tuesday reported $56.2 million in net income for the six months.
“These results show Investcorp’s continued growth and positioning against the uncertain global market environment characterized by an uneven economic recovery. All asset classes – corporate investment, real estate and hedge funds – delivered positive returns,” the firm in a statement said.
“There was a $37 million increase in value of the corporate investment portfolio, reflecting the firm’s effective stewardship of its portfolio companies through the recession, and an encouraging uplift in the value of its US real estate portfolio as that market starts to recover. Hedge funds provided an attractive, albeit more normalized, level of absolute returns of 7.1% in the period. Investcorp also added a new single manager, Ballast Capital, and now offers six single manager funds to clients,” it added.
Investcorp completed several profitable realizations from its portfolio of corporate and real estate investments with total distributions to investors of $405 million. The Firm also concluded several new and add-on investments with attractive return profiles. New corporate investments included a $52 million investment in FleetMatics, which acquired a competitor (SageQuest), add-on acquisitions by Berlin Packaging, FleetPride and Redington Gulf, and a $50 million investment in Tiryaki Agro, Turkey’s leading agricultural trader and supply chain manager. The real estate unit acquired a mixed-use development in Princeton, New Jersey.
“The results underline the fundamental strengths of our business and franchise. All asset classes made meaningful contributions to income. We made acquisitions and profitable exits in corporate investment and real estate, and hedge funds continued to show positive returns,” said Nemir A. Kirdar, Executive Chairman and CEO.
“This demonstrates how our model provides both our investors and shareholders highly attractive risk diversity in alternative investments across market cycles. We believe that we’ve prepared our business to take advantage of the global recovery and our approach, as a trusted adviser to our investors over three decades, continues to differentiate us in the Gulf and globally,” he added.
Investcorp is a leading provider and manager of alternative investment products. It has offices in Kingdom of Bahrain, New York and London and is listed on the Bahrain Bourse (INVCORP). Investcorp has three business areas: corporate investment, real estate investment and hedge funds. As at December 31, 2010, Investcorp had $12.2 billion in assets under management.