Investcorp, the global asset management firm specializing in alternative investments, today announces its results for the financial year ended 30th June 2007.
Investcorp had a landmark year in Fiscal 2007. Net income of $302.3 million is the Firm’s highest ever and an increase of 131% over the previous year. Earnings per share, based on ordinary shares outstanding at fiscal year end, grew by a greater percentage, 155% year on year, to $390. This was achieved through strong results and growth in all business areas that was reflected in record performance in both fee income and asset-based income. As a result, Investcorp is proposing to increase its ordinary dividend for Fiscal 2007 to $75 per share, a 50% increase on the prior year.
Highlights for the year:
• Net fee income of $156 million, up 21%
• Client assets under management of over $9 billion, up 47% year on year
• Total assets under management of more than $13 billion: over $9 billion from clients, $3 billion in co-investments from the balance sheet and $1 billion from affiliates and co-investors
• Record $3.4 billion raised from clients, double the prior year’s level of placement and fundraising
• First close of Gulf Opportunity Fund at $650 million (July 07), first close of Private Equity 2007 fund for US and European buyouts at $621 million (June 07), final close of Real Estate Mezzanine Fund I for $108 million (January 07) and launch of Technology Partners III Fund (April 07)
• $1.4 billion in commitments to date on these four new closed-end fund product offerings, with final target of $2.6 billion
• Five private equity buyout acquisitions in the year (Greatwide, Armacell, Moody, Icopal, Berlin Packaging) with a record equity deployment of more than $1 billion
• $2.2 billion realized from private equity buyout exits (including APCOA, Hilding Anders, Harborside, Aspective and Helly Hansen)
• Hedge Fund client assets under management up 60% to $4.2 billion
• Real Estate deployed a record $369 million in equity across 15 new US investments with aggregate transaction size of $1.7 billion
• Gross asset-based income of $472 million, up 94%
• GDRs listed on London Stock Exchange in December, increasing the firm’s international profile and providing $192 million of additional economic capital to support ongoing business growth opportunities.
Nemir A. Kirdar, President and Chief Executive Officer, said: “This has been a landmark year for Investcorp. Through an exciting period, we have kept an unwavering focus on the business. Placement and fundraising activity has been outstanding, as have acquisitions and realizations. As a result, we have more than doubled earnings versus the previous year. These achievements, coupled with new initiatives and the London listing, set a solid platform for continued growth in the years ahead.
“We have also made significant additions to our infrastructure and people, thereby enhancing our placement and fundraising capabilities in the Arabian Gulf, as well as in North America and Western Europe."
