Investcorp of Bahrain Returns to Profit as Hedge Fund Investments Rebound

Investcorp Bank BSC, the Bahrain- based investment firm, swung into profit in the fiscal full year as income from hedge fund investments rebounded and the decline in value of its private equity assets halted.

Net income was $102.2 million, or $64 a share, compared with a loss of $780.6 million, or $1,120 a share in the previous year, the Manama-based bank said in a statement to the Bahrain exchange today. Gains from its own private equity and hedge fund investments rebounded to $146.1 million from a loss of $218.4 million. Fees from overseeing funds rose 69 percent in the year to $218.9 million.

The worst financial crisis since the 1930s pushed Investcorp to write down the value of its private equity and real estate assets. Deals are now rebounding and appetite amongst Gulf investors for private equity and real estate investments is increasing, the company said today.

“The worst is certainly over, not just for Investcorp, but for the global economy,” Chief Financial Officer Rishi Kapoor said in a conference call with reporters today. “The valuation decline has certainly stopped and we are seeing an uptick globally, and alternative assets will benefit from that.”

Investcorp, which invests in private equity, funds of hedge funds and real estate, had $9.7 billion of assets under management at the end of June, up from $8.8 billion a year ago.

To contact the reporters on this story: Arif Sharif in Dubai at asharif2@bloomberg.net

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