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Zawya – Shareholders at InvestcorpInvestcorp’s Extraordinary General Assembly today voted to issue a further US$ 40 million of preference shares to meet additional demand from investors who subscribed to Investcorp’s recent capital raise.
Investcorp had received commitments in excess of the $500m of shares that could be issued under the Firm’s current Memorandum of Association. An amendment approved by the shareholders today will enable Investcorp to issue additional preferences shares to cover this oversubscription.
Reuters – Hedge fund managers, administrators and investors have gathered in Monaco for the annual GAIM industry conference following a tough year marked by poor performance and client outflows.
Below are selected quotes from the first day of the conference:
JONATHAN FEENEY, INVESTCORP INVESTMENT ADVISORS:
"In the last five years or so … everything was flying and no one cared about risk management. It’s only when problems arise that it suddenly becomes a focus, and then it’s too late.
"With a new manager, it’s horrible to say this, but it’s got to the stage now where you want to check the office exists. It’s the paranoia now post-Madoff."
Reuters – Bahrain- and London-listed investment house Investcorp INVB.BH plans to set up a fund worth up to $500 million to invest in U.S. real estate-related debt, its managing director said on Thursday.
Investcorp’s Managing Director Khalid al-Rumaihi told Reuters the company is seeking between $250 million and $500 million for the fund that will buy into U.S. real estate debt paper trading at a discount due to the financial crisis.
West Palm Beach (HedgeCo.net) – Hedge fund and alternative investor, Investcorp, along with its consortium partners Eastgate Capital Group and The National Investor, announced the acquisition of a 70% stake in Saudi gold and jewelry makers, L’azurde.
L’azurde had 2008 revenues of more than US$ 500 million and grew EBITDA by 14% over the previous year, making it over four times the size of its nearest competitor, employing over 2000 people, selling throughout the Middle East through 4,200 wholesale accounts, including to secondary markets through its distribution capabilities in the UAE. In addition, it has 18 flagship retail stores across the region.
Investcorp has made the investment through its $1.1 billion Gulf Opportunity Fund I, the first fund from Investcorp’s Gulf Growth Capital business, launched in 2007. This acquisition comes two months after the Fund closed its first deal, the November 2008 acquisition of Redington Gulf, the leading distributor and service provider of IT and telecom products in the Middle East and Africa. The Investcorp-led consortium will be the majority shareholder in L’azurde, and will help to institutionalise the company, to expand its markets and to build its brand across MENA and internationally.
"Despite challenging economic and market conditions, this is evidence of the resilience of Investcorp’s unique business model." Nemir Kirdar, Executive Chairman & CEO of Investcorp, said, "Good business opportunities are available in MENA and deals can be done. Our Gulf franchise and local reputation were key in getting us this deal and in forging this partnership…to add value to L’azurde over the coming years."
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Forex Pros – Private equity firm TowerBrook Capital said on Monday it had reached an agreement to take control of French debt-ridden auto parts firm Autodistribution Group.
The deal, at a time of slumping sales in the European car industry, will see Autodistribution’s debt slashed and new management brought in.
A majority of lenders have accepted a debt-for-equity swap, which will reduce the company’s debt from approximately 600 million euros ($755.6 million) to 140 million euros, a source familiar with the transaction said.
TowerBrook said it would obtain a 62.5 percent stake, the lenders would hold a 21.5 percent stake, while Bahrain-based private equity firm Investcorp, the company’s previous owner, would retain a 16 percent stake.
The U.S. government announced a restructuring of a bailout plan for the troubled insurer American International Group Inc. Monday, extending $30 billion in additional aid to the company.
News of the additional funds comes as AIG, once the world’s largest insurer, said it lost $61.7 billion in the fourth quarter, the biggest quarterly loss in U.S. corporate history, amid continued financial market turmoil.
West Palm Beach (HedgeCo.net) – Alternative investment manager, Investcorp, sponsored a group of Bahraini students from the Crown Prince’s International Scholarship Program (CPISP), to spend a day at Investcorp’s London office, meeting and questioning senior managers and learning about hedge funds and other alternative investments.
As a global operator with strong roots in the Gulf region, Investcorp was of great interest to the group. Presentations on Investcorp’s various business areas were made by Carsten Hagenbucher, who presented on private equity; Jonathan Feeney, who spoke on hedge funds, and Alex Lien, who discussed technology investment.
"The Crown Prince’s International Scholarship Program should be congratulated on providing such an exceptional opportunity for young Bahraini students to take places in top international Universities and Colleges." Investcorp President and Chief Operating Officer, Gary Long, said, "Investcorp is very proud to continue its support of the program."
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