Bahrain's Investcorp launches infrastructure investment business in North America

Company aims to tap into investment opportunities as continent upgrades ageing infrastructure

Mohammed Alardhi, executive chairman of Investcorp, says its new North American venture will generate additional value for clients and stakeholders. Photo: Investcorp

Investcorp, the Bahrain alternative asset manager that counts Abu Dhabi's Mubadala Investment Company as its biggest shareholder, launched a private infrastructure investment business in North America as it expands its presence in the continent.

The company will tap into investment opportunities at a time of increased activity and demand to upgrade the region's ageing infrastructure, it said in a statement on Thursday.

"The launch of Investcorp’s North America infrastructure business builds upon our long history of ... investing in private alternatives on behalf of our global client base, leveraging our strong and established experience in real estate and private equity," said Mohammed Alardhi, executive chairman of Investcorp.

"This initiative will expand our range of capabilities, generate additional value for our clients and stakeholders and lead us steadily forward in our growth strategy."

Investment in infrastructure development, which comprises roads, water systems, utilities, airports, railways and telecommunications, stands at about $79 trillion globally, although the amount needed is $94tn, leaving a $15tn gap, according to Global Infrastructure Outlook, a G20 initiative.

In the US, investment needed in infrastructure is $12tn, compared with the $8.4tn that has currently been allocated, while the investment gap in Canada stands at $20 billion, according to the research.

"We anticipate a steady rise in infrastructure investment activity in North America during the next decade," said Michael Ryder, senior advisor at Investcorp, who will be leading the new business.

The investment fund, which had $40.4bn in total assets under management as of December 31, including assets overseen by third-party managers, aims to more than double its assets under management to $100bn in seven years' time.

It has been extremely active in the US market. In March, it acquired Chicago-based S&S Truck Parts to expand its portfolio in the country.

Investcorp is also heavily involved in the real estate sector of the world's largest economy. In February it acquired 64 industrial properties worth $640 million across the US, tapping into the industrial and logistics sector, which is benefiting from strong tailwinds driven by e-commerce.

The properties, spread across approximately 5.6 million square feet, are located in seven major US markets and boosted the company's US industrial real estate holdings to approximately $3.5bn across more than 425 buildings.

The company’s overall US real estate activity during the past 12 months reached $4bn, with $2.5bn of new acquisitions and $1.5bn of dispositions, it said at the time.

Investcorp established its first infrastructure investment business in the GCC in 2019 through a strategic joint venture with Aberdeen Standard Investments.