Investcorp posts net profit of $124m for fiscal year ended June

Strong growth: Firm continues to show resilience to Covid-19 impact with 17 per cent growth in Assets Under Management (AUM) to a record high of $37.6 billion

Bahrain-headquartered global investment manager Investcorp announced on Wednesday its fiscal year results for the twelve months ended June 30, 2021 (FY21). Investcorp’s FY21 results were driven by good levels of activity across the core businesses of private equity, real estate, credit management and absolute return investments. This resulted in delivering a net profit attributable to the equity holders of the parent of $124 million compared to a loss of $165 million in FY20 and diluted earnings per share of $1.34 compared to a loss of $2.57 per share in FY20. Total comprehensive income attributable to the equity holders of the parent was $132 million compared to a loss of $210 million in FY20.

Total shareholders’ equity (excluding non-controlling interest) as of June 30, 2021, increased 46 per cent to $1,270 million (FY20: $867 million) and total assets increased 13 per cent to $2,391 million (FY20: $2,123 million). The FY21 recommendation for distribution of preferred and ordinary dividends is $44 million in aggregate, with the proposed ordinary dividend being $0.30 per share versus $0.10 per share for FY20.

Mohammed al Ardhi (pictured), Executive Chairman, said: “We are delighted to report strong financial and operational performance in what has been an incredibly challenging period for businesses globally. Whilst the coronavirus pandemic continues to present significant headwinds for many, we are making good progress on our growth journey and diversifying our investor, product and geographic base, which has not only helped us weather the pandemic but emerge from it in a robust position, well placed for our future long-term plan.

The business delivered 17 per cent growth in AUM to a record high of $37.6 billion and strong performance across all business lines. This is a testament to the resilience of Investcorp’s business model and heightened demand for sophisticated and tailored solutions that meet the needs of our growing and global client base.”

Investcorp has a presence in 12 countries across the US, Europe, GCC and Asia, including India, China and Singapore. As of June 30, 2021, Investcorp Group had $37.6 billion in total AUM, including assets managed by third party managers, and employed approximately 430 people from 45 nationalities globally across its offices.

Fee income increased by 24 per cent to $356 million during the fiscal year (FY20: $288 million), whilst deal fees increased by 39 per cent to $139 million (FY20: $100 million in FY20), driven primarily by good levels of transactional and fundraising activity. Recurring AUM fees also increased by 15 per cent to $217 million from $188 million in FY20.

The continued recovery in asset values, driven by improved operating results of underlying portfolio companies as well as healthy financial markets, resulted in asset-based income of $107 million compared to a loss of $110 million in FY20.

The firm’s diversification strategy by geography, client and product type translated into broad-based growth in AUM to a record high of $37.6 billion, representing an increase of 17 per cent from $32.2 billion in June 2020.