Investcorp’s profits jump 37% to $140.3 miln

Investcorp, the asset management firm specialising in alternative investments, on Wednesday announced its results for the 12 months ended June 30, 2011 (FY11). Investcorp’s net income increased by 37 per cent to $140.3 million, up from $102.2 million in FY10. This represents the third-best profit performance in the firm’s history and continues the rebound to profitability and growth, which began in FY10.Earnings per Ordinary Share doubled to $128 per share, and the Board of Directors has recommended a resumption of dividend payments to ordinary shareholders in the amount of $15 per share.During the year, Investcorp realised more than $1 billion in proceeds from alternative investments, reflecting the high quality of the firm’s investment portfolio and its success in supporting and managing these investments through the financial crisis in order to maximise value. Gross operating income in FY11 was $413.6 million, a 15 per cent increase over the previous fiscal year. Asset-based income grew by 52 per cent with corporate investment, real estate investment and hedge funds all producing solid, positive returns. The year was marked by a 67 per cent rise in placement and fundraising in the Gulf to a total of $517 million. Against a background of low interest rates and a continuing high level of financial risk globally, this increase demonstrates the strong interest of Gulf investors in attractive alternative investment opportunities that offer diversification potential in the face of continuing macro-financial risks.It also underlines the strength of Investcorp’s long-established relationships with Gulf investors, its enduring franchise and the innovation and quality of service inherent in its business model. Placement income increased by 37 per cent to $40.7 million with placement of deal-by-deal products up 58 per cent to $284 million. Placements included the innovative Investcorp Special Opportunities Portfolio - a portfolio of select investments in distressed credit and corporate restructurings in the United States and Europe.Several profitable realisations were made in corporate investment and real estate investment, with total realisation proceeds of $783 million. In a highly successful exit, Moody International - acquired in 2007 for $311 million - was sold for $729 million. Investcorp Gulf Opportunity Fund I made its fourth growth capital investment with a $50 million investment in Tiryaki Agro, Turkey’s leading agro trader.  The firm also agreed to acquire a leading US specialty retailer. From / Gulf Today