Investcorp Bank is an asset management and investment company that is active in private equity, real estate investments, and hedge funds management. The private equity activities are split into three teams that focus on US and European buyouts, technology small-cap investments, and gulf region investments.

The private equity arm is the company’s main source of revenues, as of 2008, representing 43% of the company’s revenues—while in 2007 the division was responsible for 44% of total revenues. The private equity activities focus on acquisitions in the United States and Europe. Some of the division’s main investments include the acquisition of Tiffany and Co. in 1984, Gucci in 1987, Saks Fifth Avenue in 1990, and Simmons in 1996. The company later divested its stakes in these companies. Investcorp expanded its private equity activities in 2001, by setting up a team to invest in the technology sector. Some of these investments include Utimaco Safeware, ZettaCom, and Platform Solutions. The company also began focusing its private equity activities on the Gulf region, in 2007, by establishing a team, called Gulf Growth Capital. The division concluded its first deal in 2008, an equity investment of BHD37.8 million (USD100 million) in a Gulf-based distribution services firm.

The Bank established its real estate investment activities in 1995, to focus on acquiring properties in the US. With BHD1.5 billion (USD4 billion) worth of properties under management, as of June 2008, the division represented 12% of the company’s total annual revenues, which compared to 7% of total revenues in 2007. Some of its notable investments include the acquisition of nine hotels in 2007, for BHD173.9 million (USD450 million), including hotels managed by Sheraton, Crown Plaza and Hilton.

Investcorp established a hedge fund division in 1996, based on the ‘fund of fund’ approach of investing in multiple funds, regionally and internationally. It also began offering managed funds on a joint venture basis, with client investors. Total hedge fund assets under management in 2008 amounted to BHD3 billion (USD7.9 billion), which represented an increase of 24% over the 2007 assets of BHD2.4 billion (USD6.4 billion). Client assets under management hedge funds grew 31% from BHD1.6 billion (USD4.2 billion) in 2007 to BHD2.12 billion (USD5.5 billion) in 2008. The hedge fund division represented 32% of the company’s total revenues in 2008, which compared to 45% of total revenues in 2007.

With respect to total revenues, Investcorp dropped by 32% in 2008. It had BHD6.8 billion (USD17.7 billion) in total invested assets under management, by June 2008, which represented a 34% increase from BHD5.1 billion (USD13.2 billion) in June 2007. The boost in total assets under management was driven by a 42% increase in clients’ assets under management, which reached BHD4.9 billion (USD12.8 billion) in 2008, up from BHD3.4 billion (USD9 billion) in 2007.

Headquartered in Bahrain, with offices in London and New York, Investcorp is listed on both Bahrain (June 1989) and London Stock Exchanges (November 2006).

The Bank plans to expand its activities into Asia’s private equity market.