Business | Investment
Investcorp bullish despite failing to equal best fiscal year
Against a backdrop of global economic turmoil and extraordinarily depressed financial markets, Investcorp, the asset management firm specializing in alternative investments, announced its second most profitable year ever.
- Staff Report
- Published: 18:35 July 24, 2008
Dubai: Against a backdrop of global economic turmoil and extraordinarily depressed financial markets, Investcorp, the asset management firm specializing in alternative investments, announced its second most profitable year ever.
Fiscal 2008, which ended June 30, 2008, saw a 20 per cent increase in ordinary dividends to $90 per share, Client Assets Under Management reaching $12.8 billion ($9.0 billion fiscal 2007), product placement and fund-raising surging to $4.7 billion (up 36 per cent from $3.4 billion in 2007), and the completion of $2.6 billion in closed-end fund raising.
Total income, however, failed to equal fiscal 2007's record high as Investcorp's performance highlighted the contrast between the booming economies of the Middle East, the heart of Investcorp's client franchise, which have led to a positive fund-raising environment, and the turbulent market conditions across the United States and Western Europe, Investcorp's primary investment markets, which have led to lower asset returns and reduced deal volumes.
Other developments within the last 12 months included signing of new projects, new funds raised and new acquisitions.
Nemir A. Kirdar, Executive Chairman & CEO, said: "This has been a year of unprecedented dislocation in global financial markets, and we have seen the impact of these conditions across our primary investment markets. As a consequence, the volume of private equity and real estate transactions has declined significantly, while the exceptionally high volatility and illiquidity in capital markets has impacted hedge fund returns and investment valuations.''
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