Bahrain's Investcorp To Set Up $1bn European Buyout Fund

Bahrain-based Investcorp on Monday announced that Coller Capital has underwritten a $1 billion restructuring of a portfolio of its assets into a new fund vehicle.

Investcorp said it has signed a secondary transaction in relation to a number of assets from its European private equity portfolio, subject to receipt of relevant regulatory approval and other customary closing conditions.

The fund will be capitalised with approximately $1 billion of aggregate commitments, it added in a statement.

Coller Capital’s current fund, Coller International Partners VII, will underwrite the new fund, with Investcorp retaining a continued interest in the portfolio.

Coller Capital, founded in 1990 by Jeremy Coller, is one of the largest global investors in the private equity secondary market.

The transaction also includes fresh capital for any follow-on investments, future investments and co-investments.

Investcorp’s European Private Equity team will manage both the assets acquired through the secondary transaction and the fund’s new capital, as it continues to invest in mid-market buyout transactions across Europe.

Investcorp said the signing of this transaction is a further key milestone in its growth strategy to reach $50 billion of assets under management over the medium term.

Mohammed Alardhi, executive chairman of Investcorp, said; “The signing of this landmark transaction in the secondary private equity market is the latest step in our global growth strategy.   

"It demonstrates the continued desire by institutional investors to back Investcorp’s investment platform. We look forward, at closing, to welcoming Coller Capital to the distinguished list of global institutions who partner with us and to working with them in the coming years to maximise the value of the portfolio.”