Home / / Redington investor suffers $511 million loss

Redington investor suffers $511 million loss

Private equity firm spent $98 million acquiring a stake in Redington Gulf last October

The private equity firm that spent $98 million acquiring a stake in Redington Gulf last October has suffered a half-year loss of $511 million.

Bahraini-based Investcorp, which became a minority shareholder in Redington after purchasing a 36% stake, is now targeting a $250 million share capital increase after reporting the loss for the six months to the end of December 2008.

The company blamed “exceptionally severe” market conditions for the slump in fortunes, which resulted in a decline of more than $526 million on balance sheet co-investments. However, it did manage to remain profitable in its fee-generating activities by providing and managing investment products for clients.

Nemir Kirdar, executive chairman and CEO, at Investcorp, was upbeat about the company’s prospects despite the loss. "Investcorp remains strong and is fully equipped to seize the new investment opportunities being offered by current market dislocations. We have already seen results as we broaden our array of alternative investment products to leverage our expertise and distribution network in new ways,” he said.

Redington currently represents the only investment that Investcorp has made through Gulf Opportunity Fund I, its $1.1 billion private equity fund targeted at the MENA region. The company said it expects to close its second transaction in the “near future” but did not indicate whether it would involve another company in the technology sector.

Follow us to get the most comprehensive IT business news delivered fresh from our social media accounts on Facebook, Twitter, Youtube, and listen to our Weekly Podcast. Click here to sign up for our weekly newsletter on curated technology news in the Middle East and Worldwide.

REGISTER NOW | Webinar Event | Security you can bank on – Safeguarding the Middle East’s financial sector

Presented in partnership with security and network specialist Cybereason, the second in the three part webinar series will bring together a panel of experts to discuss how banks and financial institutions are evolving their service offering while simultaneously staying one step ahead of the cyber criminals who seek to bring their operations crashing to the ground.

CHANNEL AWARD 2018