Bahrain's Investcorp Posts $165m Loss, Targets 50% AUM Growth

Bahrain’s Investcorp recorded a $165 million loss for the 12 months ending June 30, against profits of $131 million a year ago, citing direct negative impact from the Covid-19 pandemic.

The ongoing coronavirus crisis also impacted asset-based income, which recorded a $100 million loss from an $89 million profit, said Investcorp in a statement.

The global investment bank said its fee income contracted to $288 million, 23 percent down on $376 million for the 2018–19 financial year.

“Despite reduced fee income, the increased reliance on – and stability of – recurring fee income helped to cover operating expenses,” Investcorp said.

Investcorp cited “fair value declines” related to a number of assets operating in “secularly challenged industries”, such as retail.

“The growth and diversification strategy we introduced in 2015 has helped increase our resilience by offering a more diverse, multi-asset class, global platform,” said Investcorp executive chairman Mohammed Alardhi in a statement.

“We continue to remain confident in our growth strategy, having entered this crisis and approaching our 2021 fiscal year in a position of strength with $1.2 billion in accessible liquidity and $32.2 billion in assets under management (AUM).

“While the short-term economic outlook remains uncertain due to the ongoing pandemic, we are committed to advancing our growth strategy and reaching $50 billion in AUM over the medium term."

As of June 30, 2020, Investcorp Group had $32.2 billion in total AUM, including assets managed by third party managers, and employed approximately 450 people from 44 nationalities globally across its offices in New York, London, GCC, Mumbai and Singapore.