Investcorp, the asset management firm specializing in alternative investments, today announces its results for the 12 months ended June 30, 2008 (Fiscal 2008).
Against a backdrop of global economic turmoil and extraordinarily depressed financial markets, we are pleased to report another successful year for Investcorp. Despite income falling from Fiscal 2007’s record high, Fiscal 2008 was Investcorp’s second most profitable year ever, and a record year for fund-raising. Investcorp’s performance highlights the contrast between the booming economies of the Middle East, the heart of Investcorp’s client franchise, which have led to a positive fund-raising environment, and the turbulent market conditions across the United States and Western Europe, Investcorp’s primary investment markets, which have led to lower asset returns and reduced deal volumes.
Highlights for the period:
• 20% increase in ordinary dividends to $90 per share• Client Assets Under Management of $12.8 billion (vs $9.0 billion FY07)• Product placement and fund-raising surged to $4.7 billion (up 36% from $3.4 billion FY07)• Completion of $2.6 billion in closed-end fund raising• Recently signed $1 billion JV with a GCC sovereign investment fund for a US real estate debt fund• Private Equity team deployed $438 million of equity across three new acquisitions (Randall-Reilly, Asiakastieto and CEME) and one add-on acquisition (Anjac), with one exit (Welcome Break)• Gulf Opportunity Fund I has raised in excess of $1 billion and signed its first investment• Technology Fund III raised $500 million, acquired Utimaco Safeware AG for $21 million, and made further deployment of $44 million in follow on funding for Technology Funds I and II across eight investments
• Hedge Fund client AUM of $5.5 billion (FY07 $4.2 billion), Fund of Funds platform launched three new funds• The Single Manager Platform has seeded three new managers and has over $2 billion of assets under management• Real Estate deployed $391 million in new capital in transactions with aggregate value of over $2.5bn and $122 million in debt investment• Net fee margin of 42%, Return on Equity of 13%
12 months to June 30, 2008 12 months to June 30, 2007 Change (%)Gross fee income ($m) 382.9 383.9 -Gross asset based income ($m) 199.5 471.8 (58)Net income for the period ($m) 151.1 302.3 (50)Total assets ($bn) vs. June 2007 4.8 4.3 11Earnings per Ordinary Share ($) 215 390 (45)Dividend per Ordinary Share ($) 90 75 20
Nemir A. Kirdar, Executive Chairman & CEO, said:
“This has been a year of unprecedented dislocation in global financial markets, and we have seen the impact of these conditions across our primary investment markets. As a consequence, the volume of private equity and real estate transactions has declined significantly, while the exceptionally high volatility and illiquidity in capital markets has impacted hedge fund returns and investment valuations.
“The contrast between the very positive fund-raising environment and a tough general investment environment provides the backdrop to our 2008 results, which are, despite the landscape, our second best performance ever. We remain confident of the future prospects for our unique business, and this is demonstrated by a 20% increase in dividend.”
Ordinary General Meeting
Investcorp announces that its 25th Ordinary General Meeting will be held on Wednesday, September 3, 2008 at 11:30am at Investcorp House, Manama, Kingdom of Bahrain.
For holders of Investcorp’s GDRs, the ex-dividend date will be September 1, 2008. The dividend record date for both holders of GDRs and holders of Ordinary Shares will be September 3, 2008.
Investcorp is a leading provider and manager of alternative investment products. It has offices in the Kingdom of Bahrain, London and New York and is publicly traded on the Bahrain Stock Exchange (INVCORP) and the London Stock Exchange (IVC). Investcorp has five lines of business: private equity, hedge funds, real estate, technology investment and Gulf growth capital. Founded in 1982, Investcorp has grown to become one of the largest and most diverse alternative investment managers in terms of both product offerings and geography. As of June 30, 2008, Investcorp had more than $17 billion in invested assets under management (AuM).
Investcorp will make a results presentation for analysts and investors at 14:00 London time today.
The presentation can be accessed live by web cast via the Investcorp website (www.investcorp.com ). Alternatively, participants can dial-in by telephone conference to listen to the presentation. The dial-in number is +44 203 003 2666.
Presentation slides will be available on Investcorp’s website just prior to midday.
A summary of the Management Discussion and Analysis can be accessed by clicking on the link below.
A copy of the audited financial statements for Investcorp Bank BSC can be accessed from the second link below.