Investcorp, the alternative asset manager that counts Mubadala Investment Company as its biggest shareholder, is upbeat on the growth prospects of the US economy, despite global headwinds, and remains confident that China can resolve the $300 billion debt-crisis of its second-largest property developer Evergrande, its executive chairman said on Sunday.
“We are very bullish on the US economy,” Mohammed Alardhi told Bloomberg. “We all know what’s happening in the world, [and that] may be dampening growth, but we see good growth coming [in the US].”
The US Federal Reserve is set to start slowing its Covid-19 support to the US economy and could begin scaling back its asset purchase programme this year. However, the tapering by the Fed will be “gradual” and will give the US central bank the opportunity to discuss its “average inflation policy going forward”, which will help in minimising volatility, Mr Alardhi said.
“I think the Fed has been very careful about this right from the beginning,” he added.
The Bahrain-based company is looking for more investments in the US, which – along with Europe – currently make up about 80 per cent of Investcorp’s global investment portfolio.
It is on the lookout for private equity deals through its North America PE Fund, which has grown to over $1bn. The company is also looking to acquire more real estate assets in the world’s biggest economy.
“We are in the top five foreign investors in the US real estate [sector]. We have been doing that for a very long time [and] our investors have been very happy with us,” Mr Alardhi said.
Investcorp is focusing on investing in multifamily and industrial real estate assets in the US, which, Mr Alardhi said, are resilient to crises and different economic cycles.
“America continues to be our biggest market,” he said. “Real estate business in Europe and the US has done tremendously well.”
The company is open to exploring investment opportunities in China’s real estate sector in the wake of the Evergrande crisis that has shaken markets across Asia in recent weeks.
“We are there for the opportunities, we are there for the long term,” he said of Investcorp's investment plans in China. The company has no direct exposure to China's real estate sector.
“Obviously, the sectors that we have focused on at the moment are what we see as the best sectors: technology, healthcare and food businesses.”
Mr Alardhi said he does not believe the $300bn debt-crisis of China's second largest property developer Evergrande is equivalent to the bankruptcy of Lehman Brothers during the 2008-2009 global financial crisis.
The debt pile of Evergrande, the world’s most debt-ridden property developer, has drawn comparisons with the collapse of Lehman, with some industry analysts saying it could result in a contagion to markets outside China and possible set of a credit crunch.
“I think the Chinese government has a lot of tools to deal with this, if they decided to do that,” Mr Alardhi said.
“I think this is something temporary, contained within China and Asia. Actually, it may have a calming effect on prices of real estate that are really ballooning in parts of China.”
China's $15 trillion economy, which accounts for about 18 per cent of global output, can contain the crisis, Barbara Ann Bernard, founder and chief investment officer of asset management firm Wincrest Capital, said on Bloomberg TV. The risk from the Evergrande crisis will be a drag on Chinese growth, given the debt of the company is held by Chinese investors and banks, Ms Bernard said.
Investcorp, which plans a rapid expansion in its GCC and Asian portfolio of investment, sees its assets under management more than doubling to $100bn in the medium term from about $40bn.
“We believe, in about seven years, we can get there,” Mr Alardhi said. “Acquisitions, organic growth, joint ventures are things we have done and we will continue to do.”
The asset manager has made 11 private equity investments in Asia and sees enormous potential for growth in the region, which Mr Alardhi said will “be very important in the future of Investcorp”.
“I mean, the growth that is happening there, the scale that is happening there is something that you can’t ignore,” he said.
Investcorp will continue to focus on the consumer, technology and food sector in China, while in India it plans to explore opportunities in financial services and healthcare businesses.
“We see a lot of growth there” and “a lot of appetite for from investors” to get involved in India, China and some of the other South-East Asian markets, he added.
Investcorp operates across six business lines: private equity, real estate, credit, hedge funds, strategic capital and infrastructure.
“All these six are going to be the pillars of this growth,” Mr Alardhi said.
Established more than four decades ago, Investcorp has grown to become one of the leading alternative asset management companies in the region. It has been on an acquisition spree during the pandemic to capitalise on lower asset valuations.
Investcorp swung to a full-year profit, despite Covid-19 headwinds. Its net profit for the financial year ended June 30 rose to $124 million, from a loss of $165m a year earlier, it said in August.
Killing of Qassem Suleimani
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Results
6.30pm: The Madjani Stakes (PA) Group 3 Dh175,000 (Dirt) 1,900m
Winner: Aatebat Al Khalediah, Fernando Jara (jockey), Ali Rashid Al Raihe (trainer).
7.05pm: Maiden (TB) Dh165,000 (D) 1,400m
Winner: Down On Da Bayou, Royston Ffrench, Salem bin Ghadayer.
7.40pm: Maiden (TB) Dh165,000 (D) 1,600m
Winner: Dubai Avenue, Fernando Jara, Ali Rashid Al Raihe.
8.15pm: Handicap (TB) Dh190,000 (D) 1,200m
Winner: My Catch, Pat Dobbs, Doug Watson.
8.50pm: Dubai Creek Mile (TB) Listed Dh265,000 (D) 1,600m
Winner: Secret Ambition, Tadhg O’Shea, Satish Seemar.
9.25pm: Handicap (TB) Dh190,000 (D) 1,600m
Winner: Golden Goal, Pat Dobbs, Doug Watson.
LIKELY TEAMS
South Africa
Faf du Plessis (captain), Dean Elgar, Aiden Markram, Hashim Amla, AB de Villiers, Quinton de Kock (wkt), Vernon Philander, Keshav Maharaj, Kagiso Rabada, Morne Morkel, Lungi Ngidi.
India (from)
Virat Kohli (captain), Murali Vijay, Lokesh Rahul, Cheteshwar Pujara, Rohit Sharma, Ajinkya Rahane, Hardik Pandya, Dinesh Karthik (wkt), Ravichandran Ashwin, Bhuvneshwar Kumar, Ishant Sharma, Mohammad Shami, Jasprit Bumrah.
More on animal trafficking
Killing of Qassem Suleimani
Mohammed bin Zayed Majlis
The National's picks
4.35pm: Tilal Al Khalediah
5.10pm: Continous
5.45pm: Raging Torrent
6.20pm: West Acre
7pm: Flood Zone
7.40pm: Straight No Chaser
8.15pm: Romantic Warrior
8.50pm: Calandogan
9.30pm: Forever Young
Countries recognising Palestine
France, UK, Canada, Australia, Portugal, Belgium, Malta, Luxembourg, San Marino and Andorra
MORE ON INTERNATIONAL JUSTICE
COMPANY PROFILE
Name: Lamsa
Founder: Badr Ward
Launched: 2014
Employees: 60
Based: Abu Dhabi
Sector: EdTech
Funding to date: $15 million
UAE currency: the story behind the money in your pockets
Most match wins on clay
Guillermo Vilas - 659
Manuel Orantes - 501
Thomas Muster - 422
Rafael Nadal - 399 *
Jose Higueras - 378
Eddie Dibbs - 370
Ilie Nastase - 338
Carlos Moya - 337
Ivan Lendl - 329
Andres Gomez - 322
UAE currency: the story behind the money in your pockets
The specs
Engine: 1.5-litre turbo
Power: 181hp
Torque: 230Nm
Transmission: 6-speed automatic
Starting price: Dh79,000
On sale: Now
Our House, Louise Candlish,
Simon & Schuster
How much do leading UAE’s UK curriculum schools charge for Year 6?
- Nord Anglia International School (Dubai) – Dh85,032
- Kings School Al Barsha (Dubai) – Dh71,905
- Brighton College Abu Dhabi - Dh68,560
- Jumeirah English Speaking School (Dubai) – Dh59,728
- Gems Wellington International School – Dubai Branch – Dh58,488
- The British School Al Khubairat (Abu Dhabi) - Dh54,170
- Dubai English Speaking School – Dh51,269
*Annual tuition fees covering the 2024/2025 academic year
The specs: 2018 Maserati Ghibli
Price, base / as tested: Dh269,000 / Dh369,000
Engine: 3.0-litre twin-turbocharged V6
Transmission: Eight-speed automatic
Power: 355hp @ 5,500rpm
Torque: 500Nm @ 4,500rpm
Fuel economy, combined: 8.9L / 100km
Where to donate in the UAE
The Emirates Charity Portal
You can donate to several registered charities through a “donation catalogue”. The use of the donation is quite specific, such as buying a fan for a poor family in Niger for Dh130.
The General Authority of Islamic Affairs & Endowments
The site has an e-donation service accepting debit card, credit card or e-Dirham, an electronic payment tool developed by the Ministry of Finance and First Abu Dhabi Bank.
Al Noor Special Needs Centre
You can donate online or order Smiles n’ Stuff products handcrafted by Al Noor students. The centre publishes a wish list of extras needed, starting at Dh500.
Beit Al Khair Society
Beit Al Khair Society has the motto “From – and to – the UAE,” with donations going towards the neediest in the country. Its website has a list of physical donation sites, but people can also contribute money by SMS, bank transfer and through the hotline 800-22554.
Dar Al Ber Society
Dar Al Ber Society, which has charity projects in 39 countries, accept cash payments, money transfers or SMS donations. Its donation hotline is 800-79.
Dubai Cares
Dubai Cares provides several options for individuals and companies to donate, including online, through banks, at retail outlets, via phone and by purchasing Dubai Cares branded merchandise. It is currently running a campaign called Bookings 2030, which allows people to help change the future of six underprivileged children and young people.
Emirates Airline Foundation
Those who travel on Emirates have undoubtedly seen the little donation envelopes in the seat pockets. But the foundation also accepts donations online and in the form of Skywards Miles. Donated miles are used to sponsor travel for doctors, surgeons, engineers and other professionals volunteering on humanitarian missions around the world.
Emirates Red Crescent
On the Emirates Red Crescent website you can choose between 35 different purposes for your donation, such as providing food for fasters, supporting debtors and contributing to a refugee women fund. It also has a list of bank accounts for each donation type.
Gulf for Good
Gulf for Good raises funds for partner charity projects through challenges, like climbing Kilimanjaro and cycling through Thailand. This year’s projects are in partnership with Street Child Nepal, Larchfield Kids, the Foundation for African Empowerment and SOS Children's Villages. Since 2001, the organisation has raised more than $3.5 million (Dh12.8m) in support of over 50 children’s charities.
Noor Dubai Foundation
Sheikh Mohammed bin Rashid Al Maktoum launched the Noor Dubai Foundation a decade ago with the aim of eliminating all forms of preventable blindness globally. You can donate Dh50 to support mobile eye camps by texting the word “Noor” to 4565 (Etisalat) or 4849 (du).
What sanctions would be reimposed?
Under ‘snapback’, measures imposed on Iran by the UN Security Council in six resolutions would be restored, including:
- An arms embargo
- A ban on uranium enrichment and reprocessing
- A ban on launches and other activities with ballistic missiles capable of delivering nuclear weapons, as well as ballistic missile technology transfer and technical assistance
- A targeted global asset freeze and travel ban on Iranian individuals and entities
- Authorisation for countries to inspect Iran Air Cargo and Islamic Republic of Iran Shipping Lines cargoes for banned goods
What can you do?
Document everything immediately; including dates, times, locations and witnesses
Seek professional advice from a legal expert
You can report an incident to HR or an immediate supervisor
You can use the Ministry of Human Resources and Emiratisation’s dedicated hotline
In criminal cases, you can contact the police for additional support
