Manama, Bahrain – Investcorp, a global alternative investment firm, today announced that its GP staking arm, Investcorp Strategic Capital Group (ISCG), has closed on commitments of over $1.25 billion to Investcorp Strategic Capital Partners II and associated vehicles (together, “ISCP II”), inclusive of $1.1 billion of fund commitments and an additional $155 million of committed co-investment capital.

ISCP II closed at a size more than 75% higher than that of ISCP I in a highly selective fundraising environment for private markets, underscoring the differentiated nature of ISCG’s strategy and the strength of its LP relationships. Following the ISCP II fundraise, ISCG AUM totals over $2.4 billion.

ISCP II received meaningful support from existing limited partners, with the majority of ISCP I investors increasing or maintaining their commitments. ISCG also expanded the geographic reach and diversification of its investor base across insurance companies and private wealth channels in the US, while securing new investors across Asia, Europe, Latin America and the GCC. In particular, ISCG has continued to expand its network of relationships with Wealth Managers, Registered Investment Advisors, Single and Multi-Family Offices, and High Net Worth Individuals, resulting in a deeper and broader penetration of this large and growing pool of investor capital.

Beyond fund commitments, a sub-set of investors have also committed a total of $155M for co-investments, with ISCG expecting to offer co-investment opportunities to its LPs in future ISCP II investments. Beyond direct co-investments, ISCG has also facilitated LP allocations into Partner GP funds.

“Since we launched our growth strategy ten years ago, Investcorp has proven itself as a value-added partner of choice in the middle market across asset classes and regions. Our GP staking strategy is emblematic of this approach, and we look forward to backing more talented GPs in the years ahead and expanding their reach and capabilities.” said Mohammed Alardhi, Executive Chairman of Investcorp.

“We are deeply grateful for the support and conviction of our limited partners, who believe in the platform we’ve built to support middle-market GPs accelerate their growth and enhance longevity,” said Anthony Maniscalco, Managing Partner and Head of ISCG. “ISCP II’s successful close reflects the strength of our strategy and the trust we have built with investors globally. The GP staking strategy has become a core component of investor allocations, and we are excited to continue as an active, hands-on partner to our portfolio.”

As one of the first active investors in middle-market GPs, ISCG seeks to deploy large-cap institutional tools and resources to assist middle-market GPs. ISCG’s approach centers on supporting GPs with fundraising in key investor channels, enhancing strategy and product development, and accelerating further development of the GP’s internal infrastructure.  ISCG has built a comprehensive toolkit to support Partner GPs across key business priorities such as product development, generative AI integration, technology, operations, human capital management, succession planning, and add-on acquisitions. ISCG has also established a seven-person internal capital formation team to augment Partner GP fundraising efforts.

ISCG backs high growth private capital managers in the middle market, defined as those managing between $1 to 10 billion in assets. Since its inception in 2019, ISCG has backed over a dozen GPs that invest in private equity, private credit, real assets, infrastructure, structured capital, and secondaries. ISCP II has made three investments thus far, with a fourth set to close later this year, including Monomoy Capital Partners, MML Capital, Banner Ridge Partners and Vauban Infrastructure Partners. The combined AUM of Partner GPs across ISCP II and its predecessor exceeds $105 billion. ISCG anticipates constructing a portfolio of approximately 10 Partner GPs for ISCP II, consistent with its disciplined and diversified portfolio construction approach.

Fried, Frank, Harris, Shriver & Jacobsen LLP advised on the fund formation of ISCP II.

About Investcorp

Investcorp is a global investment manager specializing in alternative investments across four asset classes: Private Equity (mid-market buyouts, growth investments, and GP staking), Real Assets (real estate and infrastructure), Credit (CLOs, broadly syndicated loans and structured credit, and middle market direct lending), and Liquid Strategies (absolute return investments and insurance asset management).

Since its inception in 1982, Investcorp has focused on generating attractive returns for its clients and creating sustainable long-term value by employing a disciplined investment process, leveraging deep sector expertise, and drawing on the resources of a global platform.

Investcorp invests its own capital alongside its clients, aligning interests across its investment strategies, and is committed to responsible investing and sustainable value creation within portfolio companies and the communities in which it operates.

Today, Investcorp manages approximately US $60 billion in assets, including assets managed by third party managers. The firm operates from 14 offices across the United States, Europe, the GCC, and Asia – including India, China, Japan, and Singapore – and employs approximately 500 professionals representing over 50 nationalities worldwide.

For further information, visit http://www.investcorp.com and follow us @Investcorp on LinkedIn, X and Instagram

Media Contact:
International / GCC
Firas El Amine
felamine@investcorp.com