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Bahrain’s Investcorp to buy 3i’s debt-management business for $271 million

* Investcorp to acquire 3iDM for $271 million

* 3iDM transaction will bring Investcorp’s total assets under management to $23 billion

* In July 2016 Bahraini firm sold its 20 per cent stake to Abu Dhabi based Mubadala Development Company


Bahrain-based private equity investor Investcorp has agreed to acquire the debt-management business of Britain’s 3i for 222 million pounds ($271 million), it said on Tuesday.

The proposed transaction will add $12 billion to Investcorp’s assets under management (AUM), bringing the Bahraini company’s total AUM to $23 billion, and will be fully funded by the company’s existing balance sheet.

Investcorp said it does not plan to seek debt capital or further equity investment for the transaction.

The alternative investment firm said the acquisition of 3iDM is subject to various regulatory approvals and it is expecting to close in the first half of 2017.

The transaction is the largest and latest by Investcorp after it announced in November last year that it was targeting growing assets under management to $25 billion in the medium term. Since then it has made several strategic moves including the acquisition of Hedge Fund of Funds arm of SSARIS Advisors, LLC, a US investment manager of absolute return hedge fund strategies and hedge fund of funds strategies.

In July 2016 it sold 20 per cent stake to Abu Dhabi based Mubadala Development Company opening new avenue of joint investments.

“Under 3i’s ownership, the 3iDM team has created a compelling alternative credit investment business which has seen assets under management more than double in the past five years.  We see this business as one of the central pillars of Investcorp’s product platform going forward and are absolutely committed to continuing to grow the business on multiple fronts including fundraising, product development and capital support,” said Rishi Kapoor, Co-CEO of Investcorp.

“The 3iDM business has had a strong run under 3i’s umbrella and Investcorp is a great home for the business going forward given its strong reputation as a global diversified alternative investment manager with a deep and loyal investor franchise. The combination provides 3iDM with access to new and incremental sources of capital through Investcorp’s client base in the Gulf and the US. The fit is excellent from a cultural, product and geographical perspective,” Simon Borrows, Chief Executive of 3i.


(With inputs from Reuters)