INVESTCORP, a global provider and manager of alternative investment products, posted a 56 percent growth in net income year-on-year of $104.9 million in fiscal year months ended June 30, 2013. The result reflects a notable increase in investment and placement activity driven by continued demand from clients in the Gulf for alternative investments, supported by a steady flow of profitable realizations. Gross operating income increased by 35 percent in FY13 to $361.8 million (FY12: $267.1 million). Second half net income was $65.7 million (H2 FY12: $62.2 million). The firm saw strong fee income growth of 40 percent year-on-year to $329.5 million in FY13 (FY12: $236.0 million), primarily driven by a very strong increase in deal activity fees, which more than doubled to $193.4 million and represented 58.7 percent of total fee income. During the year, Investcorp concluded eight new corporate investments and there were four significant realizations. Asset-based income was up slightly year-on-year, with the strong turnaround in hedge fund returns offset by flat returns on corporate and real estate investments. The mix of performance across the three asset classes during the year highlighted the benefit of diversification within the balance sheet co-investment portfolio and the lower risk to asset-based earnings from lower return correlation. Nemir A. Kirdar, Executive Chairman and CEO, said: “As we enter our fourth decade, our plans to invest in our office network across the Gulf are well underway, with our Riyadh office expanded and new offices in Abu Dhabi and Doha pending regulatory approval. By being closer to our clients we believe we will strengthen our unique ability to raise money across the Gulf, the US and Europe and continue to drive returns for our shareholders and investors.” The Board of Directors has proposed a dividend of $15 per ordinary share (FY12: $7.50 per ordinary share), along with the full dividend of 12 percent on the preference shares. — SG
