1 Feb 2011
Investcorp, the alternative investment firm, today announced its results for the first half of its fiscal year 2011 (the six months ended December 31, 2010).
Investcorp reported $56.2 million in net income for the six months. These results show Investcorps 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. 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.
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.
Nemir A. Kirdar, Executive Chairman & CEO, said: “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. 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.”