Investcorp’s China-Backed Fund Inks Three Middle East Deals - Bloomberg

Investcorp’s China-Backed Fund Inks Three Middle East Deals - Bloomberg

Investcorp Holdings has inked three deals through a new investment vehicle anchored by China’s sovereign wealth fund that was set up earlier this year to target opportunities within the Middle East.

“That fund is coming along great, we are targeting about $750 million,” Chief Investment Officer Rishi Kapoor told Bloomberg TV. The biggest Mideast alternative asset manager had initially planned to set up a $1 billion fund, backed by China Investment Corp., to capitalize on growing ties between Gulf oil exporters and the world’s second-largest economy.

The fund will focus on investments in the Middle East, particularly Saudi Arabia and the United Arab Emirates, reflecting growing international investor interest in the region, Kapoor said in an interview on the sidelines of the Future Investment Initiative in Riyadh.

“We’ve got three deals inside the fund, all of them are doing particularly well, and all of them in the same space, so consumer services, healthcare, business services,” he said.

Investcorp is among a raft of companies that are setting up Middle East-focused funds. BlackRock Inc. is set to get as much as $5 billion from Saudi Arabia’s sovereign wealth fund to invest in the region and Goldman Sachs Group Inc. is also working to raise money for one.

The firm counts some of the Middle East’s wealthiest royals and business moguls among its backers. Abu Dhabi wealth fund Mubadala Investment Co. is also a shareholder, and Kapoor expects more partnerships with sovereign investors in the future.

“Those are rewarding partnerships, they last generations, they are not just one transaction,” he said. “Going forward, we would probably see more of those rather than fewer.”

Investcorp has about $53 billion assets under management, and hopes to grow that to $100 billion, according to Kapoor. “It is all about scaling up that business footprint” across the US, Europe, Middle East and Asia and across asset classes including private equity and private credit, he said.

Initially focused on investing in the US and Europe, Investcorp is perhaps best known for investments in Tiffany & Co. and Gucci Ltd., made in its early years. Its operations now include private equity, real estate, private credit and infrastructure investing.

The firm announced a sweeping reshuffle earlier this year, which resulted in the co-chief executive officer role being scrapped, with the chairman taking on more responsibilities. As part of those changes, Kapoor, who was a co-CEO, took on a new role as vice chairman and CIO.