Investcorp, a Bahrain-based investment firm, formed a joint venture with European alternative asset manager, Tages Group, to create a global investment platform with more than $6 billion (Dh22bn) in revenue generating assets.
The 50-50 partnership JV, called Investcorp-Tages, is formed through the merger of Investcorp’s absolute return investments business and Tages Capital, an absolute return subsidiary of investment firm Tages, Investcorp said in a statement on Wednesday.
The new entity will have 18 investment professionals working for it, in four business units - alternative portfolio solutions, special situations portfolios, emerging managers and seeding, and a quantitative solutions arm.
Investcorp, which counts Mubadala Investment Company as its biggest shareholder, said the JV will be co-led by existing management, including Lionel Erdely, chief investment officer of Investcorp’s ARI business, and Salvatore Cordaro, founding partner of Tages Capital.
“This combination underscores Investcorp’s commitment to continue to serve our investor base with a broader array of solutions across the globe,” Rishi Kapoor, co-chief executive of Investcorp, said. “The JV with Tages will be optimally positioned for accelerated growth serving the evolving needs of investors for absolute return investments in the post-Covid landscape, with an expanded geographic footprint, deeper bench of talent and enhanced scale.”
The new entity's parents, Investcorp ARI and Tages Capital have no client overlap and combining the businesses will help expand its client relationships and geographical reach. The biggest component of the JV’s client base is in North America - approximately 40 per cent - with the rest spread fairly evenly across Europe, Asia and the Middle East, the company said.
“Our combined strengths will accelerate our objectives to drive growth,” Panfilo Tarantelli, chief executive and founding partner of Tages, said. “The availability of additional resources, a global reach and access to multiple pools of capital will enhance our ability to offer ‘de-correlated returns’ in the current volatile market environment.”
The combined businesses will benefit from a deeper product portfolio, including multi-manager portfolios across hedge funds, private debt and impact investments, seeding activities and cross-asset strategies, the company said.
Investcorp has invested in a broad range of sectors and industries. The company closed a $275 million first funding round for its food sector-focused private equity platform in April, with plans to expand its portfolio of investments. The investment vehicle aims to invest in the growing, but fragmented food sector in Asia, the company said at the time.
The Bahrain-based asset management company last month also acquired German cybersecurity company Avira for $180m.
Since its inception in 1982, Investcorp has completed over 195 private equity deals in the US, Europe, Asia, and the Mena region. It has also carried out more than 800 commercial and residential real estate investments in the US and Europe, with a total transaction value of $61bn.
In March, it acquired the Coca-Cola Company’s Belgian headquarters for €88m (Dh362m), marking its entry into the country and its first European sale and leaseback deal.
The low down
Producers: Uniglobe Entertainment & Vision Films
Director: Namrata Singh Gujral
Cast: Rajkummar Rao, Nargis Fakhri, Bo Derek, Candy Clark
Rating: 2/5
Hidden killer
Sepsis arises when the body tries to fight an infection but damages its own tissue and organs in the process.
The World Health Organisation estimates it affects about 30 million people each year and that about six million die.
Of those about three million are newborns and 1.2 are young children.
Patients with septic shock must often have limbs amputated if clots in their limbs prevent blood flow, causing the limbs to die.
Campaigners say the condition is often diagnosed far too late by medical professionals and that many patients wait too long to seek treatment, confusing the symptoms with flu.
Mohammed bin Zayed Majlis
Classification from Tour de France after Stage 17
1. Chris Froome (Britain / Team Sky) 73:27:26"
2. Rigoberto Uran (Colombia / Cannondale-Drapac) 27"
3. Romain Bardet (France / AG2R La Mondiale)
4. Fabio Aru (Italy / Astana Pro Team) 53"
5. Mikel Landa (Spain / Team Sky) 1:24"
Don't get fined
The UAE FTA requires following to be kept:
- Records of all supplies and imports of goods and services
- All tax invoices and tax credit notes
- Alternative documents related to receiving goods or services
- All tax invoices and tax credit notes
- Alternative documents issued
- Records of goods and services that have been disposed of or used for matters not related to business
THE BIO
Born: Mukalla, Yemen, 1979
Education: UAE University, Al Ain
Family: Married with two daughters: Asayel, 7, and Sara, 6
Favourite piece of music: Horse Dance by Naseer Shamma
Favourite book: Science and geology
Favourite place to travel to: Washington DC
Best advice you’ve ever been given: If you have a dream, you have to believe it, then you will see it.
What is blockchain?
Blockchain is a form of distributed ledger technology, a digital system in which data is recorded across multiple places at the same time. Unlike traditional databases, DLTs have no central administrator or centralised data storage. They are transparent because the data is visible and, because they are automatically replicated and impossible to be tampered with, they are secure.
The main difference between blockchain and other forms of DLT is the way data is stored as ‘blocks’ – new transactions are added to the existing ‘chain’ of past transactions, hence the name ‘blockchain’. It is impossible to delete or modify information on the chain due to the replication of blocks across various locations.
Blockchain is mostly associated with cryptocurrency Bitcoin. Due to the inability to tamper with transactions, advocates say this makes the currency more secure and safer than traditional systems. It is maintained by a network of people referred to as ‘miners’, who receive rewards for solving complex mathematical equations that enable transactions to go through.
However, one of the major problems that has come to light has been the presence of illicit material buried in the Bitcoin blockchain, linking it to the dark web.
Other blockchain platforms can offer things like smart contracts, which are automatically implemented when specific conditions from all interested parties are reached, cutting the time involved and the risk of mistakes. Another use could be storing medical records, as patients can be confident their information cannot be changed. The technology can also be used in supply chains, voting and has the potential to used for storing property records.
