Investcorp, the Bahrain-based asset manager that counts Mubadala Investment Company as its biggest shareholder, reported a 33 per cent jump in first-half net profit on the back of higher asset-based income.
Net profit attributable to equity holders of the parent for the six-month period ending December 31, 2020 jumped to $63 million, the company said in a statement to the Bahrain bourse, where its shares trade. Asset-based income for the period increased more than three-fold to $45m. Assets Under Management (AUM) fees also rose 16 per cent year-on-year to $101m.
"The progress we have delivered on our growth and diversification strategy, coupled with our robust investment and distribution platform, has not only helped Investcorp absorb the shock from the Covid-19 pandemic, but we believe that it will drive our continued success and resilience amidst this uncertain market environment,” Mohammed Alardhi, executive chairman of Investcorp said.
The company’s investment activity of $1.4 billion during the period was driven by two new private equity investments in the US and Europe and two add-on acquisitions in addition to eight investments in businesses across Asia, it said on Wednesday. Investment in real estate in the US and Europe was above $300m, according to the company.
Net debt increased to $936m in the first half of the 2021 fiscal year from $672m in the previous year "largely due to the completion of two private equity acquisitions during the month of December."
Assets under management grew 9 per cent to $35bn from the end of June 2020, driven by the broad-based diversification of the franchise across geographies, clients and products, according to the company.
"As we grow, we are committed to continuing our prudent and disciplined approach to capital and liquidity management given the overall market uncertainties while advancing our evolution as a firm," Mr Alardhi said.
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CONVICTED
Lionel Messi Found guilty in 2016 of of using companies in Belize, Britain, Switzerland and Uruguay to avoid paying €4.1m in taxes on income earned from image rights. Sentenced to 21 months in jail and fined more than €2m. But prison sentence has since been replaced by another fine of €252,000.
Javier Mascherano Accepted one-year suspended sentence in January 2016 for tax fraud after found guilty of failing to pay €1.5m in taxes for 2011 and 2012. Unlike Messi he avoided trial by admitting to tax evasion.
Angel di Maria Argentina and Paris Saint-Germain star Angel di Maria was fined and given a 16-month prison sentence for tax fraud during his time at Real Madrid. But he is unlikely to go to prison as is normal in Spain for first offences for non-violent crimes carrying sentence of less than two years.
SUSPECTED
Cristiano Ronaldo Real Madrid's star striker, accused of evading €14.7m in taxes, appears in court on Monday. Portuguese star faces four charges of fraud through offshore companies.
Jose Mourinho Manchester United manager accused of evading €3.3m in tax in 2011 and 2012, during time in charge at Real Madrid. But Gestifute, which represents him, says he has already settled matter with Spanish tax authorities.
Samuel Eto'o In November 2016, Spanish prosecutors sought jail sentence of 10 years and fines totalling €18m for Cameroonian, accused of failing to pay €3.9m in taxes during time at Barcelona from 2004 to 2009.
Radamel Falcao Colombian striker Falcao suspected of failing to correctly declare €7.4m of income earned from image rights between 2012 and 2013 while at Atletico Madrid. He has since paid €8.2m to Spanish tax authorities, a sum that includes interest on the original amount.
Jorge Mendes Portuguese super-agent put under official investigation last month by Spanish court investigating alleged tax evasion by Falcao, a client of his. He defended himself, telling closed-door hearing he "never" advised players in tax matters.
