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Mid East Info
13-05-2025
- Business
- Mid East Info
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.
Mint
12-05-2025
- Automotive
- Mint
Auto parts makers are battling EV to tariff threats. They may have found the next big thing
For auto component makers facing risks from the rise of electric vehicles and looming US tariffs, a new potential market is emerging: humanoid robots. Manufacturers of engine components and transmissions to brake assemblies can diversify into making parts for robots that look and function like humans. 'There are companies which have already started making humanoid robots," said Rohit Nanda, group chief financial Officer at Sona Comstar, which announced its foray into the segment on 30 April. 'About 50% of the bill of materials of such robots are products which we make for other applications like motors, drives, gears,etc." Also read | Man versus machine as China shows off humanoid robots in half-marathon The use of robots in scientific research to factories is expected to explode over the next decade. The Indian Space Research Organisation has developed a humanoid robot, Vyommitra, which will fly into space as part of the test launches for the Gaganyaan mission. Goldman Sachs expects theglobalmarket for humanoids to grow to $38 billion by 2035. China dominates The supply chain is dominated by Chinese players, who could be challenged, Nanda of Sona Comstar told Mint. 'We need to learn how to make these for a different use case. Our engineers will work with potential customers to develop these capabilities." The key to the growth of the humanoid robots market is making components cheaper, according to Jacqueline Du, head of China industrial technology research at Goldman Sachs. This is where the Indian auto component makers can help with large-scale production at lower costs. 'Players involved in the auto component manufacturing industry have perfected the cost model for the parts," said Prateek Jain, cofounder and chief operating officer at Addverb Technologies, a robotics company. 'They make many of the products, including gears and motors, which are critical in the production of robots." Also read | Man versus machine as China shows off humanoid robots in half-marathon According to Jain, a single humanoid can have 42-50 actuators or a complex system of parts that convert energy into physical motion. 'We need the precision, quality, scale and cost, which can be provided by auto parts players to develop the humanoid robot ecosystem in India." Sona Comstar estimates that 10 million humanoid robots are expected to be deployed by 2035. This story will unfold in the next 5-10 years, CFO Nanda said. 'This doesn't come in a big way into revenue in the next 2 to 3 years. Initial investments will be in the engineering team. Once we understand the opportunity, then we can invest in setting up a manufacturing facility." Mitigating global risks The bet on making parts for humanoid robots is part of a diversification effort by an industry prone to cyclical slowdowns because of its global exposure. In the year through March 2024, auto component players exported parts worth $21 billion, with nearly a third of it coming from the US. Donald Trump's tariff threat is a big concern for the sector. 'We identify three key risks for auto ancillary players—USMCA/tariffs, EU weakness and Chinese competition, and EVs – given the industry's export reliance on US/EU and good salience of engine components," analysts at Ambit Institutional Equities wrote in a 25 April note. Targeting robots as a new market is also seen as a prudent bet for auto parts makers because it's still nascent and scale is not expected anytime soon. Also read | Race to outrun humans: How humanoid robots are closing the gap The pursuit of leading auto component players to diversify into areas like electronics, robot part manufacturing, aerospace and defence will continue to intensify as these players will look to find new avenues of growth and expand margins, according to Jugnu Sakuja, managing director at consultancy firm Alvarez & Marsal. 'Such moves take time to materialise due to the need for technical capabilities, reliability and testing requirements as well as certifications." Jefferies analysts Nitij Mangal, Sagar Sahu and Kevin Verghese, in a 9 March note, said that rising electronics manufacturing in the country has opened doors for auto parts players to diversify. 'We believe more firms may expand into electronics, which may potentially lift growth outlook and multiples," they wrote.
Al Bawaba
11-02-2025
- Business
- Al Bawaba
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 dividend of 0.09 Dirhams per share declared; representing 8% dividend yield annualized based on net asset 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 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 Financing Services income rose 27% to $14 million in Deployment grew 42% this quarter from $7 million to $10 profit grew by 33% to $16 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 (
