Investcorp on Wednesday announced that it would delist the global alternative investments firm from Bahrain Bourse and convert itself into a closed shareholding company. The process is expected to be to completed during the third quarter of 2021.
In its four decades of existence, Investcorp has grown into a global alternative investment manager with approximately $35.4 billion in assets under management, diversified by geography, asset classes and clients.
Mohammed Alardhi, executive chairman, said, “Delisting and becoming a private company is the most appropriate ownership structure at this stage in the continuing journey of Investcorp. It will allow us to be agile, focused on investing for our long-term strategy and enables our senior leadership team to be dedicated to driving growth.’’
“Bahrain and the GCC region are part of the historical fabric of the company and will continue to be key markets for Investcorp both in terms of investment activity, whether in private equity or infrastructure, as well as with our clients, investors and other stakeholders,’’ he said.
He added, “We remain fully committed to pursuing our global growth over the long term via both organic and inorganic initiatives and are excited about the future as we advance our ambitious, yet prudent, expansion strategy.”
Investcorp has a presence in 12 countries across the US, Europe, GCC and Asia, including India, China and Singapore.
Investcorp in India
Investcorp maintains an active presence in the mid-market space, with the firm making bets in consumption-linked sectors and real estate. Some of these sectors include consumer-technology, education, logistics, healthcare, and financial services.
In India, it expanded its presence through an acquisition of the private equity and real estate investment management businesses of IDFC Alternatives Ltd, a subsidiary of IDFC Ltd, in 2019. At the time of the acquisition, IDFC’s PE and realty fund businesses had an assets under management of about $430 million.
Since then, Investcorp has been part of several large funding rounds with the latest being its consortium investment of $110 million (about Rs 816 crore) in Alibaba Group-backed logistics company Xpressbees.
In February, it picked up a 5.55% stake for Rs 75 crore ($10.3 million) via compulsorily convertible debentures in luggage maker Safari.
The same month, it also elevated Harsh Shethia to head its India business. Shethia, who has been associated with Investcorp for nearly 19 years, will report directly to group co-chief executive officer Rishi Kapoor.
Within real estate, Investcorp says it invests in projects located in top-tier cities in the country. So far, it has deployed at least $200 million across 26 projects through two funds. It has also raised $130 million in anchor commitments for its real estate direct lending unit.
In an earlier interaction with VCCircle, Investcorp India head of private equity Gaurav Sharma said that it has deployed $190 million across 12 companies since it began investing in India since 2011. Sharma added that the ability to take a business global is one of the key drivers for partnering with entrepreneurs. In India, Investcorp will continue to evaluate both US headquartered SaaS companies with back operations in India as well as domestic SaaS companies.
The firm which typically invests in Series B-plus companies is also seeing increased activity in the $10-$15 million sized cheques. The sweet spot though remains at $20-50 million, which is a clear white space in India.