Investcorp Capital, an investor in private markets and provider of capital financing services in the alternative investments space, on Tuesday announced its financial results for Q1 FY24 (ending 30 September 2023), with the company delivering positive growth underpinned by strong business activity.
The company
The growth demonstrates the effectiveness of management strong decision-making by Investcorp Capital in navigating the current landscape. Return on Equity (ROE) of 10% was calculated on a last twelve months (LTM) basis, and gross operating income was $19 million, with total operating expenses of $3 million. The income-to-expense ratio stands at 6.3x.
Investcorp Capital’s portfolio diversification showed that 74% of assets invested in recurring fee/yield generating assets (excluding cash), and the company’s borrowing amount of $163 million results in a leverage ratio of 0.13x, indicating a conservative financial position.
Timothy Mattar, Chief Executive Officer of Investcorp Capital, commented: “We are delighted to announce the start of our new journey as Investcorp Capital plc, with our new public shareholders, by delivering robust financial results for the first quarter of fiscal year 2024. Our steadfast commitment remains towards the realization of our mission – to open up a world of private markets to all investors through an innovative investment vehicle.
“We look forward to navigating these uncharted waters with dedication and strategic foresight.”
Abbas Rizvi, Chief Financial Officer of Investcorp Capital, added: “The results for Investcorp Capital have demonstrated a strong year on year growth of 44% and a 10% return on equity on last twelve months basis. The strong performance was anchored by strong deployment and realization activities across all asset classes, cash yield generation as per targets and a promising start to placement activity. We believe the balance sheet will deliver on the rest of year objectives.
“We remain confident in our ability to deliver the targeted 8.4% dividend yield, with first payment targeted to be made soon after announcement of results for half year ending 31 December 2023.”
Investcorp Capital’s results follow the successful initial public offering and listing on the ADX on November 17. Through the IPO, the company raised gross proceeds of approximately AED1.66 billion (approximately $451 million) from local and international professional investors.
The company is targeting to pay dividends of at least AED422 million for the financial year ending 30 June 2024, implying a dividend yield of 8.4% on an absolute and pro-rated basis and 13.5% on an annualized basis for IPO investors.
OPERATIONAL ACTIVITY
During Q1 FY24, Investcorp Capital deployed $217 million across global credit, corporate investments and real estate. Realised Capital Financing Services Exposures amounted to $87 million in Q1 FY24 across corporate investments and real estate.
In Q1 FY24, $45 million was invested across global credit, corporate investments, strategic capital and real estate. Proceeds from capital deployment investment realizations totalled $27 million during Q1 FY24 across global credit and real estate. All realizations during the quarter were equal to or above the FV marks carried at 30 June 2023. –TradeArabia News Service
