Mubadala to buy 20% stake in Investcorp

Bloomberg

Abu Dhabi sovereign investment fund Mubadala Development Co. will acquire a 20 percent stake in alternative investment firm Investcorp Bank BSC, which has backed companies including Tiffany & Co. and Gucci Ltd. under founder Nemir Kirdar.
Mubadala will secure a 9.99 percent stake immediately and a further 10.01 percent after gaining regulatory approval, Investcorp said in a statement on Thursday. The Bahrain-based bank will consider co-investing with Mubadala on deals and is also looking for other institutional investors, Investcorp executive chairman Mohammed Al Ardhi said on a call with journalists.
“From an investment perspective, the stable and long-term value-creation mission of Investcorp makes it a logical addition to Mubadala’s diverse financial investment portfolio,” Khaldoon al Mubarak, chief executive officer of Mubadala, said in a statement.
Al Ardhi said, “Our vision is to grow our assets under management by more than double over the medium-term and that vision has a few building blocks.” The new strategy includes seeking new institutional investors, “doing bigger deals, co-investing and things that allow us to leverage our infrastructure and reach between the Gulf and the West,”
he said.
The Bahrain-based money manager, the Gulf’s largest private investor in US real estate, is charting a new growth plan under Al Ardhi, after a generational shift in the company’s management last year. Mohammed Al-Shroogi and Rishi Kapoor were appointed co-chief executive officers in April 2015 after the retirement of Abdul-Rahman Salim Al-Ateeqi, who had been chairman since Investcorp was founded in 1982. Kirdar became chairman that same year.
Investcorp, which has offices in London, New York and the Middle East, manages about $11 billion in capital, chiefly on behalf of wealthy Middle Easterners. It aims to increase that to $25 billion over the next five to seven years, Al Ardhi said.
Under the new management team, Investcorp also aims to expand investment products, rebuild its hedge-fund business and do larger transactions in the US through its private-equity arm.