Bahrain’s Investcorp Targeting 15-20% Profit Growth Over 5 Years

Investcorp Bank BSC, the Bahrain-based investment firm managing about $11.5 billion, is targeting average annual profit growth of 15 to 20 percent in the next five years after fiscal first-half net income gained.

The company is looking at investments in the retail, healthcare, education, and downstream energy industries in the Gulf Cooperation Council region and Turkey, Chief Financial Officer Rishi Kapoor told reporters today in Dubai. It’s also looking at investments in U.S. real estate assets and in Europe.

Investcorp invested $445 million in three companies in the U.S., U.K. and Turkey in the fiscal first half. The company also completed the sale of online payment company Skrill Group for a total enterprise value of $800 million and insulation firm Armacell to Charterhouse for more than 500 million euros ($674 million). The firm has reduced its exposure to hedge funds from $2 billion at the end of 2008, to about $450 million at the end of last year.

Net income for the six months through December gained 53 percent to $60.1 million, the company said today.

“We don’t focus on six-monthly results, we focus on a long-term horizon.” Kapoor said, “Over a five year period our growth expectations are around 15 to 20 percent a year.”

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