Investcorp operating earnings soar to US $23.5m

Investcorp, the Bahrain listed global investment group, reported operating earnings of US $23.5 million for the first six months of 2002, marking an 28 percent increase from the same period last year.

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By  Massoud Derhally Published  July 17, 2002

Investcorp, the Bahrain listed global investment group, reported operating earnings of US $23.5 million for the first six months of 2002, marking an 28 percent increase from the same period last year.

Net income after provisions was $13.2 million, compared to $1.6 million for the first six months of 2001. Operating earnings in the second quarter of 2002 were $46.9 million, compared to a marginal loss of $0.4 million for the same period last year.

In a statement from the bank, chief executive and president, Nemir Kirdar, said, “These results are testimony to Investcorp’s core strengths. These include our twenty-year track record as a pre-eminent private equity investor and our leading position as a top fund-of-hedge-funds manager, underpinned by the strength of our placement franchise with Gulf investors.”

Investcorp said in a statement that its strong performance, which comes against a backdrop of, continued turmoil and difficult conditions in financial markets worldwide, “demonstrates the resilience of Investcorp’s diversified revenue sources from its four lines of business.” The bank’s lines of business include: asset management, real estate, technology investment, and corporate investment.

The bank is known by a number of high profile acquisitions made in the US and Europe where it reinvigorates poor performing businesses and exits the investment after a holding period of three to five years.

Investcorp has concluded some 90 corporate and real estate investments in North America and Western Europe with an aggregate value of approximately US$20 billion.

Past acquisitions have included Italian fashion house Gucci, Tiffany and Company, and watch maker Chaumet. Current investments include US retailer Saks Fifth Avenue, Independent Wireless One, and Neptune Technology Group.

Investcorp made a net loss of $23.4 million in the first quarter of 2002.

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