28/09/2016 05:06 AST
Investcorp, a leading provider and manager of alternative investment products, today announced projected investment distributions of over $700 million to investors (including itself) in the first quarter of its fiscal year 2017 (FY17).
This follows a series of successful exits over the period and during the fiscal year that ended on June 30, 2016 (FY16), it said.
Mohammed Alardhi, the firm’s executive chairman, said: “Investcorp continues to deliver exceptional performance despite the challenging conditions in the markets we operate in. The last few months have seen an exceptionally active period for the firm led by a number of successful exits that enabled us to further strengthen our financial position and deliver on our commitments to shareholders and clients.
"This performance also was reflected in the significant increase in dividends on our ordinary shares approved by our shareholders at the Ordinary General Meeting of Shareholders held earlier today," he told a press conference.
“As we mark the end of a strong first quarter in FY17, we remain focused on executing our growth strategy, supported by our shareholders and strategic partners. We look forward to another successful year for Investcorp, building on our strong foundation as a committed Bahraini firm.”
Investcorp’s recent exits include the sale of the premium crisps manufacturer Tyrrells, the sale of the global information services company CSIdentity, the initial public offering of L'azurde Company for Jewellery on the Saudi Stock Exchange, the sale of Polyconcept, the leading supplier in the promotional products industry, the initial public offering of the Internet security software provider Sophos on the London Stock Exchange, in addition to a number of successful exits in the real estate sector.
He said since the launch Investcorp's new growth strategy in November 2015, the company has seen near record levels of activity across its businesses.
"We have made significant investments into the infrastructure of the business, and we are delivering sustainable returns to our loyal and growing community of investors, he said.
Investcorp's total assets under managment (AUM) stood at $10.8 billion. "And with Mubadala joining our shareholder base and allocating a significant equity investment in the firm, we are moving closer to achieving our ambition of more than doubling our AUM to $25 billion in the next five years," said Alardhi.
The company expects to enlarge its placement capacity in the Gulf. It also aims to enter into the European real estate sector, he said.
The company is also developing a global distribution system, which will allow it distribute its products in major markets.
On the company's Middle East investments, he said: "We are a global company. The geographies that we are in are part of the markets we play in. We have considerable corporate investments in Mena. We have bought companies and are buying more. We are in the process of creating funds for the region and also collaborating with other institutions to align ourselves with their investment philosophies."
The company has been active in North America, Europe and Mena markets. "We feel we can do a lot more in these markets,” said Alardhi.
Investcorp also has indirect investments in factories and other businesses in many countries in Asia. The new global distribution system will allow it to directly invest in these markets, he said.
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