Investcorp growth continues with net income rising to $125mn

August 08, 2018

Investcorp, a global provider and manager of alternative investment products, on Wednesday announced its results for the year ended June 30, 2018 (FY 2018), showing continued growth momentum and healthy levels of activity on all dimensions across business lines.

Aggregate net income increased four per cent year-on-year to US$125mn compared to US$120mn in FY 2017, with fully diluted earnings per share increasing by four per cent to US$1.30 [compared with US$1.25 in FY 2017]. Income for the second half of FY 2018 was US$70mn.

The board is proposing a full year dividend of US$0.24 per ordinary share, Investcorp said in a press release.

Investcorp continues to make good progress in relation to its growth strategy. Continued geographical diversification of the firm’s investor base and product set has helped support record levels of activity in terms of distributions to clients, investment activity and fundraising across all markets.

Marking a strong performance across the business, Investcorp’s investment activity in the period rose 36 per cent to US$2.8bn [against US$2.1bn in FY 2017]. Total placement and fundraising activities rose 77 per cent to US$7.3bn, reflecting, in part, a full year’s contribution from Investcorp Credit Management (ICM) and the firm’s broadening and active client base. Distributions more than doubled to US$7bn in FY 2018 compared with US$3.4bn in FY 2017.

Continued growth in assets under management (AUM), which increased by six per cent to US$22.6bn in the period, has also, as a consequence of the ICM business, resulted in higher recurring income derived from AUM fees, with AUM fees growing by 27 per cent to US$173mn. Asset based income also grew by 30 per cent to US$133mn, primarily driven by successful corporate investment realisations. This drove an increase in gross operating income of eight per cent to US$454mn against US$422mn in FY 2017.

Mohammed Alardhi, executive chairman of Investcorp, said: “As we continue our growth momentum across the business, we are pleased that the firm has continued to report strong performance across a range of our key indicators delivering high quality earnings.”

He said, “Following the successful integration of Investcorp Credit Management, I am pleased to see the delivery of the anticipated strategic benefits of the acquisition in terms of diversification of both products and clients. Our real estate division produced strong results this year, while our corporate investment and alternative investment solutions teams continued to deliver.”

“We look forward with great confidence as we become a bigger, more geographically diversified firm and are committed to continuing to seek superior returns for our clients and shareholders,” Alardhi added.