Dubai: Bahrain’s Investcorp slipped into a $165 million loss for the 12 months ended June 30, against profits of $131 million a year ago.
The COVID-19 played its part in the loss, as fee income contracted 23 per cent to $288 million from $376 million. “Despite reduced fee income, the increased reliance on - and stability of - recurring fee income helped to cover operating expenses,” the company said in a statement. (The company's financial year ends June 30.)
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The ensuing “recession” also impacted on asset-based income, which recorded a $100 million loss from an $89 million profit. It was attributed to “fair value declines” related to a number of assets operating in “secularly challenged industries”, retail being one of them.
Stick to its strategy
In a statement, Mohammed Alardhi, Executive Chairman, said: “The growth and diversification strategy we introduced in 2015 has helped increase our resilience by offering a more diverse, multi-asset class, global platform. We continue to remain confident in our growth strategy, having entered this crisis and approaching our 2021 fiscal year in a position of strength with $1.2 billion in accessible liquidity and $32.2 billion in assets under management (AUM).
“While the short-term economic outlook remains uncertain due to the ongoing pandemic, we are committed to advancing our growth strategy and reaching $50 billion in AUM over the medium term."
