Investcorp, a global provider and manager of alternative investment products, continued momentum in its performance in the 12 months ended June 30, 2014, with a strong 25 percent growth in net income and a very significant 84 percent growth in fully diluted earnings per share over the prior year. FY14 net income is $131.2 million (FY13:$104.9 million), representing a fully diluted EPS of $129 per ordinary share (FY13:$70 per ordinary share) and a return on average equity (ROAE) of 16 percent. FY14 saw high levels of activity on all fronts – acquisitions, realizations and fund-raising - which have been a key driver of this strong performance, and reflect the continued appetite from investors for attractive alternative investments around the world. This fiscal year marks five consecutive years of strong performance for Investcorp, reflecting a sustained and robust recovery from the global financial crisis of 2008-09. Since the end of FY09, Investcorp has seen its book value per ordinary share grow by 64 percent, while delivering aggregate earnings of $401 per ordinary share and an average return on equity of 11.4 percent per annum. Nemir A. Kirdar, Executive Chairman and CEO, said: “Our strong performance once again confirms the success of our model and is indicative of the high level of activity in all geographies in which we operate. We continue to invest in our business and in the on-going expansion of our office network across the Gulf, thereby strengthening our franchise's ability to expand our client base and drive attractive returns for our shareholders and investors.” Over the last five years, despite turbulent markets, Investcorp has continued to invest in its business, its investor franchise and its product capabilities, adding people and expanding its office network to put in place a robust platform to support its recovery and growth trajectory. This has been further supplemented by prudent financial management, the de-risking and strengthening of the Firm's balance sheet, while maintaining a clear focus on delivering optimal investor returns. Relative to the beginning of FY09, balance sheet leverage has come down by more than 50 per cent to 1.2x and capital adequacy has gone up by more than 60 per cent to 30.4 percent. Aggregate realization proceeds in this five-year period exceeded $5.7 billion, with total fundraising of over $7 billion. Total capital deployed in new investments over this period reached $3 billion with deal-by-deal placements totaling over $2.5 billion. Through the financial crisis and beyond Investcorp has built a strong, sustainable platform which it believes positions the Firm optimally for continued delivery of strong performance for all its stakeholders. – SG
