Investcorp Capital Delivers 22% growth in distributable cash earnings and maintains 8% Annualized Dividend in H1 2025
Investcorp Capital plc (the 'Company' or 'Investcorp Capital') (ADX symbol: 'ICAP'), an investor in private markets and alternative investment opportunities, is pleased to announce its interim results for the six months ended 31 December 2024 (the 'Period' or 'H1 2025').
H1 2025 Highlights:
$39 million of cash distributable earnings in H1 2025, representing 22% growth over the prior year comparable period.Interim dividend of 0.09 Dirhams per share declared; representing 8% dividend yield annualized based on net asset value.Steady gross operating income of $45 million and total operating expenses of $5 million, with an income to expense ratio of 9.0x.$480 million deployed across Capital Financing Services and Capital Deployment with total realizations of $543 million.Positive Capital Financial Services performance and steady returns from Real Assets and Global Credit.
Healthy balance sheet despite higher financing costs reflecting business activities and growth initiatives.
Investcorp Capital's performance typically follows a seasonal pattern, with activity picking up post-summer. This trend is reflected in our positive quarter-on-quarter results.
Q2 2025 Highlights
Steady growth in operating profits up 25% to $25 million in Q2.Capital Financing Services income rose 27% to $14 million in Q2.Capital Deployment grew 42% this quarter from $7 million to $10 million.Net profit grew by 33% to $16 million.Earnings per share up $0.73 per share in Q2, up from $0.55 per share in Q1.
Positive cash flow momentum with net cash flow from operating activities rising by 10% in the quarter reaching $11 million.
Mohammed Alardhi, Chairman of Investcorp Capital, commented: 'We are pleased with the progress made in the first half of 2025, underpinned by a 22% growth in cash distributable earnings. The period saw us deploy capital on investments throughout a variety of asset classes such as our Student Housing Portfolio in the US, the acquisition of Epipoli in Italy, and a strategic investment in PKF O'Connor Davies that expanded our portfolios. Looking forward to the second half of the year, we believe we are well positioned to continue to deliver positive returns for our shareholders.'
Rohit Nanda, Chief Financial Officer of Investcorp Capital, commented: 'We continue to deliver positive returns for investors in the first half of the year through our investments across a diverse range of asset classes and geographies. We now turn our attention to building on these results by actively managing our balance sheet to support higher business activities and growth initiatives to provide our investors with the best possible returns.'
Operational Highlights
In the six months ended 31 December 2024, the Company made a series of strategic investments, advancing growth across key sectors including real assets, global credit and corporate investments. This activity has provided investors access to a broader range of global investments across a diverse range of asset classes and geographies.
Investcorp Capital's performance typically follows a seasonal pattern with the first half of the financial year including the traditionally quieter summer followed by an increase in activity and associated returns recorded historically during the second half of the financial year.
The Company delivers diversified and recurring revenue streams through its Capital Financing Services business, which generates underwriting and commitment fees, and its Capital Deployments business, which generates recurring income, including rental income, dividend income and interest income, alongside long term capital gains.
Post-period end, the Company has appointed Mohamed Aamer as Interim CEO, effective 1 March 2025 to take over from Tim Mattar who is retiring from Investcorp Group after more than 30 years of service. A separate announcement in this regard has been published on ADX and can be found on Investcorp Capital's website.
Capital Deployment
The Company invested $75 million across asset classes and geographies in H1 2025, including $30 million in Real Assets, mainly driven by the US Industrial Growth Portfolio, Baltimore & Minneapolis Industrial, Industrial Fund Recap, Industrial Fund II, JFK, US Student Housing IV Portfolio. Corporate Investments totaled $45 million including Epipoli, PKF O'Connor Davies and POC.
Proceeds from Capital Deployment investment realizations over the Period totaled $66 million. Of this, $44 million came from Global Credit, with the realizations of Collateralized Loan Obligations (CLOs). $14 million was from Real Assets including the South Florida and Denver Industrial Portfolio, US Industrial Growth Portfolio, US Student Housing II & III, 2020 Warehouse and Logistics, Boston and Minneapolis Industrial Portfolio and the US National Industrial II.
Capital Financing Services
$405 million was deployed in Capital Financing Services across asset classes throughout the Period, marking a 9% annualized return on the Capital Financing Services business. This was primarily driven by $230 million in Real Assets, deployed in the US Industrial Growth Portfolio, Diversified Data Center Portfolio, Baltimore & Minneapolis Industrial Portfolio, and US Student Housing IV Portfolio. $136 million was deployed in Corporate Investments, including Stowe Family Law in the UK, PKF O'Connor Davies in the US and Epipoli in Italy. A further $39 million in Global Credit was deployed across various CLOs and the European Loan Company III.
The Company saw $477 million of realized Capital Financing Services exposures, with $318 million of realizations in Real Assets, $127 million in Corporate Investments, $29 million in Global Credit and $3 million in Strategic Capital.
Outlook
The Company has made steady progress in H1 2025, and we expect to see an improved investment landscape in the second half of the year. Investcorp Capital, under the leadership of Interim CEO, Mohamed Aamer, will continue to look for attractive investment deployment opportunities as well as attractive exit opportunities.
© 2000 - 2025 Al Bawaba (www.albawaba.com)
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Al Bawaba
13-05-2025
- Al Bawaba
Investcorp Capital Achieves Net Profit of $41 million through the first three quarters of its fiscal year ‘25
Investcorp Capital plc (the 'Company' or 'Investcorp Capital') (ADX symbol: 'ICAP'), an investor in private markets and alternative investment opportunities, is pleased to announce its financial results for the third quarter of fiscal year 2025 covering the period ended 31 March 2025 ('Q3 2025'). Q3 2025 Highlights: • YTD $71 million of cash distributable earnings, representing 82% growth quarter-on-quarter, underpinned by YTD FY'25 Net profit of $41 million, including Q3 2025 Net Profit of $13 million.• $1.2 billion deployed across Capital Financing Services and Capital Deployment with total realizations of $824 million, through solid syndication activity and several successful exits including RESA Power in Private Equity and US National I Portfolio in Real Estate.• Capital deployment exposure as a percentage of long-term capital at 90%, up from 66% in June 2024.• Healthy balance sheet reflecting a diversified portfolio with 62% invested in yield generating assets.• Strong cash distributable earnings. Mohamed Aamer, Interim Chief Executive Officer of Investcorp Capital, commented: 'The progress made this quarter is a continuation of Investcorp's 4-decade track record of solid performance through economic cycles, and demonstrates our commitment to delivering returns to investors, with an 82% increase in quarter-on-quarter cash distributable earnings. We have seen good business activity this year and unlocked value notably through the successful sale of RESA Power and the US National I Portfolio. Going forward, we will continue to target a diverse range of investment opportunities with the potential for strong returns on investment.' Rohit Nanda, Chief Financial Officer of Investcorp Capital, commented: 'We are pleased with the progress made so far this year, with total assets growing by 22% to $2.2 billion, up from $1.8 billion in June 2024, as we continue to grow our balance sheet is healthy and our high cash generation supports our commitment to deliver the 8% annualized dividend payment at the end of the fiscal year.' Operational Highlights In April, with the sale of the US National I Portfolio for an aggregate sale price of $360 million, the Company realized an approximate 40% increase in value over its initial purchase price, in addition to the rental distributions received during the hold period. The portfolio was sold to take advantage of the vibrant capital markets for industrial assets in the US and strong property operating fundamentals. Similarly, the sale of RESA Power generated strong returns. Since Investcorp's acquisition in 2021, RESA Power grew its revenues and EBITDA by over 4x and today serves thousands of commercial & industrial, utility and datacenter customers across North America. Capital Deployment The Company invested $356 million across asset classes and geographies so far in fiscal year 2025, including $237 million in structured products and $84 million in Corporate Investments across US and Europe. Co-investment in US Real Assets totaled $35 million, across Warehouse & Logistics, Student Housing and Infrastructure. Proceeds from Capital Deployment investment realizations over the period from various asset classes totaled $106 million. Of this, $54 million came from Global Credit, with distributions from Collateralized Loan Obligations (CLOs) in the US and Europe. $32 million came from Corporate Investments in US and MENA. $15 million came in ongoing rental yield distributions from multiple Real Estate portfolios in the US. $5m came from Strategic Capital. Capital Financing Services Performance within the Capital Financing Services business continued to be strong, generating a 10% annualized return with $854 million deployed across asset classes in the last ninemonths. This was primarily driven by $482 million in Real Assets, deployed in the Diversified Data Center Portfolio, Baltimore & Minneapolis Industrial Portfolio, US Student Housing IV Portfolio and US Student Housing V Portfolio. $271million was deployed in Corporate Investments, including Miebach in Germany, PKF O'Connor Davies in the US and Epipoli in Italy. A further $101 million in Global Credit was deployed across various CLOs. Offsetting this, the Company benefited from continued solidsyndication activity from the broader Investcorp group, with $718 million of total syndication, the majority of which came from Real Assets, amounting to $465 million. Corporate Investments syndication stood at $211 million, Global Credit was $41 million, and Strategic Capital was $1 million. Outlook The Company has made good progress fiscal year to date with continued profitability and growth on a quarter-on-quarter basis. Looking forward to the remainder of fiscal year 2025 and into 2026, the Company will continue to capitalize on the activity of 2025, looking for attractive exit and investment opportunities in line with its stated long-term objective of delivering attractive long-term returns on invested capital. © 2000 - 2025 Al Bawaba (
Ammon
07-05-2025
- Ammon
U.S. seeks breakup of Google's ad-tech products after judge finds illegal monopoly
Ammon News - The U.S. Department of Justice has proposed that Google sell its AdX digital ad marketplace and DFP platform for managing and delivering ads on websites, after a federal judge found the company illegally dominated two online ad-tech markets. The proposed remedies, including divestitures, are necessary to end the Alphabet-owned tech giant's monopolies and restore competition in the ad-exchange and publisher ad-server markets, the DOJ said in a court filing late on Monday. U.S. District Judge Leonie Brinkema in Alexandria, Virginia last month found Google liable for "willfully acquiring and maintaining monopoly power" in those two markets. The ruling was another blow for Google after a separate judge found last year that Google held an illegal monopoly in online search. Brinkema set a September trial date on Friday, after hearing from Google and the DOJ on potential remedies for the company's dominance in ad tools used by online publishers. Google has said the company supported behavioural remedies such as making real-time bids available to competitors, but that prosecutors cannot legally pursue a bid to force it to sell parts of its business. "The DOJ's additional proposals to force a divestiture of our ad tech tools go well beyond the Court's findings, have no basis in law, and would harm publishers and advertisers," Lee-Anne Mulholland, Google's vice president of Regulatory Affairs, said in a statement to Reuters. Shares of Alphabet were down nearly 1.1% in premarket trading on Tuesday. AdX, or Ad Exchange, is a marketplace where publishers can make their unsold ad space available to advertisers for purchase on a real-time basis. Publisher ad servers are platforms used by websites to store and manage their digital ad inventory. Along with ad exchanges, the technology lets news publishers and other online content providers make money by selling ads.
Al Bawaba
23-04-2025
- Al Bawaba
Abu Dhabi Securities Exchange (ADX) Signs an Agreement with Iraqi Stock Exchange (ISX) and Iraqi Securities Commission (ISC) to Join Tabadul Hub
The Abu Dhabi Securities Exchange (ADX), the largest exchange in the UAE and second largest exchange in the MENA region, has signed an agreement with Iraqi Stock Exchange (ISX) and Iraqi Securities Commission (ISC) to integrate ISX into the Tabadul Digital Hub to become the hub's ninth member. The event was held at ADX's headquarters on April 22nd. This agreement builds on a commitment made by ISC and ADX in January 2025 to enhance the relationship between the two countries' capital markets. It aims to foster collaboration in various areas, including technology and innovation, upgrading electronic trading and post-trading systems, and sharing best practices and trading techniques. The agreement will pave the way for seamless direct trading between ADX and ISX for both investors and brokerage firms. Through the Tabadul platform, brokerages on both exchanges will gain remote access to one another's markets, fostering cross-market trading and connecting Iraqi investors with regional and international investment opportunities. By leveraging Tabadul, investors from member exchanges can participate in in each other's IPO offerings, highlighting the benefits of cross border trading. His Excellency Mr. Faisal Al-Haimus, Chairman of the Iraq Securities Commission, praised this step, affirming that Iraq's accession to the Tabadul platform marks a qualitative leap in the development of the financial market infrastructure in Iraq. He noted that it strengthens opportunities for regional partnerships and economic integration with Arab financial markets, contributing to broader investment prospects and reflecting the Commission's commitment to supporting digital transformation in the Iraqi financial market. Abdulla Salem Alnuaimi, Group Chief Executive Officer of the Abu Dhabi Securities Exchange, stated: "The agreement marks a significant milestone in the collaboration between ADX and ISX. By welcoming ISX onto the Tabadul platform, we aim to enhance our regional presence through increased market activity and offer investors a broader range of opportunities by providing access to investment options in the listed companies of both exchanges. The platform currently provides access to more than 7.5 million investors on member exchanges and includes more than 490 listed companies. Trading activity among member financial markets doubled in 2025 compared to 2024, reflecting the platform's position in the regional financial landscape.' For her part, Jamie Afham Touma, Executive Director of the Iraq Stock Exchange, said: 'We are proud that the Iraq Stock Exchange has joined the Tabadul digital trading platform, as this represents an important step toward developing Iraq's financial market and enhancing its integration with regional markets. Our cooperation with Abu Dhabi Securities Exchange aligns with the Iraqi government's efforts to boost economic growth and attract more investment, supporting the government's objectives of promoting economic openness and developing financial infrastructure.' Alongside ADX, the platform includes the Bahrain Bourse, Muscat Stock Exchange, Astana International Exchange, Kazakhstan Stock Exchange, Central Asian Stock Exchange, Armenia Stock Exchange, and Amman Stock Exchange. Discussions are ongoing with 10 financial markets to join the platform, which offers a wide range of trading opportunities for investors in all participating markets directly and easily, enabling all participants to develop and achieve their interests, which is crucial for accelerating economic growth in the financial markets of member countries. Tabadul underscores ADX's commitment to technological advancement and its drive to broaden market access. The Abu Dhabi Securities Exchange is committed to expanding the "Tabadul" platform through strategic partnerships with leading global financial markets to enhance connectivity between different markets, namely Arab countries such as Iraq, increase liquidity, and provide innovative trading solutions for investors.
