Investcorp holds first close of fund on $620m

Investcorp nears $1bn target for its first conventional limited partnership private equity fund as it expands its investor base to include investors beyond its Gulf heartland.

Investcorp, a global asset management firm specialising in alternative investments, has held a first closing of Investcorp Private Equity 2007 Fund, its first traditional fund targeting institutional investors outside the Gulf region.

The fund has committed capital of approximately $620 million, including $270 million from Investcorp and its affiliates. 

As revealed by PrivateEquityOnline in January this year, the fund will invest in all transactions made by Investcorp’s private equity group on a fixed pro rata basis, with the fund’s share initially being 30 percent of the total equity invested by Investcorp, including the fund. 

The balance of the equity of each deal will be placed as usual with Investcorp’s Gulf client network and, from time to time, with co-investors, or held on the balance sheet of Investcorp.
Investcorp private equity expects to continue making control-oriented buyout investments in the US and Europe with a target equity capital deployment of $800 million to more than $1 billion across 3 to 5 transactions per year.

The 2007 Fund is distinct from Investcorp’s recently announced Gulf Opportunity Fund that is being offered by its Gulf growth capital line of business, primarily to Gulf investors, and which will target private equity investments within the Gulf region for the first time.