Abu Dhabi fund acquires Investcorp stake

31 July 2016

Mubadala has agreed to take stake in Bahraini investment bank

Abu Dhabi sovereign wealth fund Mubadala Development Company has agreed to acquire a 20 per cent stake in Bahraini alternative investment bank Investcorp.

Mubadala is acquiring 9.99 per cent of the bank immediately.

The remaining 10.01 per cent stake will be transferred following regulatory approvals. The value of the transaction was not disclosed.

“Mubadala is one of the strongest and most respected investment companies in the GCC and globally, so today’s development is a significant milestone in the institutionalisation of our shareholder base,” Mohammed Mahfoodh Alardhi, executive chairman of Investcorp, said in a press release. “This investment is a validation of Investcorp’s blue-chip brand, our human capital, and our vision for the future. This is a positive step for our stakeholders, including our shareholders, investors and portfolio companies.”

In March 2016, Investcorp had $10.1bn in assets under management, down from $10.7bn in December 2015. It reported a net income of $50.9m in the first half of 2016, and had assets of $2.3bn.

Its shareprice on the Bahrain Bourse opened at $6.90 on 31 July.

It has a property portfolio in the US and a private equity arm invested in sectors including information technology, retail and oil & gas services.

Mubadala is a state-owned fund with a $67.1bn of diversified global investments. The Abu Dhabi government plans to merge it with an oil & gas focused fund, International Petroleum Investment Corporation.

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