Bahrain-based private equity firm Investcorp reported a rise in profit for its fiscal year (FY) ending June 2019.Net profit attributable to shareholders for FY 2019 amounted to $131 million, compared to $125 million for FY 2018, a 4.8 percent increase.
The Manama-based company saw an increase in Gross Operating Income and Fee Income at $465 million and $376 million respectively.
Mohammed Alardhi, Investcorp’s executive chairman, said: “Our strong full-year results and ability to deliver on several strategic initiatives demonstrate Investcorp’s resilience and focus on strategic growth and profitability goals, despite various economic and geopolitical challenges.”
Investcorp’s assets under management (AuM) rose by 7 percent to $28.2 billion, compared to $26.3 billion on June 30, 2018.
“Our ambitious growth strategy of reaching $50 billion in AuM over the medium term is unchanged as we remain focused on delivering profitable growth, while retaining a prudent approach to balance sheet and liquidity management,” Alardhi added.
The company’s board of directors proposed a cash dividend of $0.3 per share, compared to $0.24 for FY 2018, a 25 percent increase.
The asset management firm has however cut its private equity co-investments by 19 percent to $505 million from $625 million.
The move’s aim is to reduce the company’s balance sheet risk and was done through secondary private equity transactions with Coller Capital and HarbourVest, Investcorp said in the press release accompanying the earnings.
Coller Capital is a large global investor in the private equity secondary market while HarbourVest is a private equity fund of funds and a large private equity investment manager.
“The Central Bank of Bahrain recently issued its final approval on the delicensing of the whole sale bank (Investcorp Bank B.S.C) and the process of converting into a holding company and the voluntary surrender of the Bahrain wholesale bank license is expected to be completed this summer,” the company said.
(Reporting by Gerard Aoun; Editing by Seban Scaria)
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