Bahrain-based asset manager Investcorp recorded a 17% drop in profit for the second half of 2019 despite a rise in assets under management (AuM).
In the six months up to December 31, net profit reached $47.6 million – down from $58.2 million in the corresponding period in 2018.
Total comprehensive income also declined by 18% to $46 million, while Investcorp’s earnings per share dropped 12% to $0.65.
However, Investcorp’s AuM rose by $3 billion during the second half of 2019 to $31.1 billion while fee income of $172 million represented a 15% year on year increase, driven by a surge in asset management fees, according to an Investcorp statement.
“[The] results reinforce our confidence in Investcorp’s organic and inorganic growth strategy,” said Mohammed Alardhi, executive chairman of Investcorp.
“The increase in AuM during the period was largely attributable to organic initiatives, demonstrating strong global demand for our offerings with investors seeking increased exposure to alternative assets.”
Despite the geopolitical headwinds in 2019, Investcorp upped its investment from the previous year – from $1.2 billion to $1.9 billion. The manager also increased the globalisation of its distribution platform, said Alardhi, with fundraising outside of the region accounting for $1.6 billion of the total fundraising figure of $2.6 billion.
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