Investcorp eyes new deals after FishNet buy
Wednesday, 23 January 2013
DUBAI: Investcorp, one of the Middle East's largest private equity firms, may raise new money from investors in 2013 and expects its $1 billion Gulf fund to be fully invested by end-July, a senior executive said.
The firm also said on Wednesday it had bought U.S. information security firm FishNet Security from private equity firm Lake Capital.
The price was "slightly above" $200 million, Mohammed al-Shroogi, Investcorp's president for the Gulf business told Reuters in an interview.
"The real value of the acquisition will be realized in the long-term when we expand the company and grow it into new markets outside the US," Shroogi, who was previously Citigroup Inc's chief executive for the United Arab Emirates, said.
Investcorp plans to expand FishNet's presence to Europe and the Middle East post-acquisition, he said.
Private equity firms in the Middle East are looking to exit investments and identify new acquisitions after a period of consolidation following the global financial crisis.
Investcorp, which previously took public luxury brands Gucci and Tiffany & Co, had $11.5 billion in assets under management as of June 30 2012.
The company may raise a new fund in 2013 or decide to make more direct investments, Shroogi said.
About $750 million of Investcorp's Gulf fund is currently invested and the company expects to fully deploy the fund by the end of July, the executive said, adding Investcorp was set to announce another deal in February.
"We will announce a new deal in early Feb. It won't be a Gulf company but will bring an international company into the region," he said without giving additional details.
Investcorp's latest deal comes a few days after the private equity firm sold CCC Information Services to U.S-headquartered Leonard Green & Partners. The company had last year sold truck and trailer parts distributor FleetPride to private equity firm TPG for over $1 billion. (Reuters)