Investcorp reports 33% jump in first-half net profit

The Bahrain-listed firm reports $63m in net profit during the first six months of its fiscal year on the back of higher asset-based income

One of Investcorp’s affiliates acquired a portfolio of 13 multi-let industrial assets in South Wales. Courtesy Investcorp

Investcorp, the Bahrain-based asset manager that counts Mubadala Investment Company as its biggest shareholder, reported a 33 per cent jump in first-half net profit on the back of higher asset-based income.

Net profit attributable to equity holders of the parent for the six-month period ending December 31, 2020 jumped to $63 million, the company said in a statement to the Bahrain bourse, where its shares trade. Asset-based income for the period increased more than three-fold to $45m. Assets Under Management (AUM) fees also rose 16 per cent year-on-year to $101m.

"The progress we have delivered on our growth and diversification strategy, coupled with our robust investment and distribution platform, has not only helped Investcorp absorb the shock from the Covid-19 pandemic, but we believe that it will drive our continued success and resilience amidst this uncertain market environment,” Mohammed Alardhi, executive chairman of Investcorp said.

The company’s investment activity of $1.4 billion during the period was driven by two new private equity investments in the US and Europe and two add-on acquisitions in addition to eight investments in businesses across Asia, it said on Wednesday. Investment in real estate in the US and Europe was above $300m, according to the company.

Net debt increased to $936m in the first half of the 2021 fiscal year from $672m in the previous year "largely due to the completion of two private equity acquisitions during the month of December."

Assets under management grew 9 per cent to $35bn from the end of June 2020, driven by the broad-based diversification of the franchise across geographies, clients and products, according to the company.

"As we grow, we are committed to continuing our prudent and disciplined approach to capital and liquidity management given the overall market uncertainties while advancing our evolution as a firm," Mr Alardhi said.