N EW SLET T ER / / M ARC H 2020

Investment in

FORTUNE
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INSIDE

Terminus CEO Investcorp’s Investcorp India Growing our Strengthening

talks AI Global Survey at a Glance Footprint in Asia Corporate Citizenship
C O N T E NTS

08 12
04 // Co-CEOs Message
Driving Growth from a Position of Strength

05 // Letter from the Executive Chairman

A Unique Growth Journey

06 // 2020 Fiscal Half Year Results

Investcorp’s AUM Grows to US $31.1 Billion

08 // Interview
Terminus CEO Talks Artificial Intelligence
Gilbert Kamieniecky Discusses Technology Investments

12 // Investcorp’s Global Survey

Investment Trends for the Future
 16
18 30
16 // Investcorp India at a Glance
White Paper: A Different India
Real Estate Direct Lending Initiative 26 // Continued Strength in the US
Information Session Investment in Fortune
Modernizing our NY Offices
18 // Growing our Footprint in Asia
Partnerships 27 // Enhancing Interface and Infrastructure
Engaging with Key Stakeholders Investcorp Launches New Website
Tokyo Seminar
28 // Around Europe
20 // Gulf and MENA Daniel Lopez-Cruz: 50 Most Influential in Private Equity
Investors Conference Credit Management Annual Reception
Tiryaki Agro Exit
Investcorp Visits Neom 29 // Awards
Global Investors in Investcorp Investcorp “Firm of the Year: MENA”
Changing the PE Landscape
24 // Real Estate in US and Europe
US Industrial Portfolio 30 // Strengthening Corporate Citizenship
Rotterdam Acquisition Environmental, Social & Governance Highlights
Munich Office Complex Investcorp Supports Injaz Al Arab
European Trends & Updates Women’s Alternative Investment Summit
CO-CEOS MESSAGE

Driving Growth
from a Position
of Strength
Rishi Kapoor Hazem Ben-Gacem
Co-Chief Executive Officer Co-Chief Executive Officer

For nearly 40 years, Investcorp has succeeded because of unprecedented urbanization, invested in one of the leading artificial
the trusted relationships we have cultivated with our clients, intelligence & machine learning platforms in China, invested
shareholders, employees and other stakeholders. These bonds in several healthcare focused companies and launched a new
have been built and strengthened by understanding the needs of infrastructure business in the Middle East, predicated on seeking to
our constituents and then by diligently acting upon them. capture all of the trends mentioned above.

In late 2019, we launched the inaugural edition of an annual

We are making solid progress and we believe that we are strongly
Investcorp survey to share actionable insights with our stakeholders
positioned to continue earning our clients’ trust with our talented
and further inform our thinking on the global investment landscape.
team, entrepreneurial investment approach and commitment to
In partnership with IMD Business School, Mercury Capital and
providing world-class service with tailored investment solutions
ICR, we polled 185 global investors across a range of institution
and products.
types that collectively represented more than US $10 trillion in
AUM on the key secular trends they believed would shape the
global economy over the next 30 years. The survey also sought to
understand how and when investors would seek to gain exposure
to these trends within their investment portfolios.

So, what did we learn and why is it important? With persistently

low-interest rates, evolving geopolitical dynamics, slowing
economic growth and high-market volatilities, the process of
identifying and investing in super secular trends is compelling. Rishi Kapoor Hazem Ben-Gacem
Co-Chief Executive Officer Co-Chief Executive Officer
When asked to select the most compelling trends driving global
economies and the consequent investment landscape over the next
30 years, global institutional investors overwhelmingly cited an
aging population as the most significant trend (78%), followed by
artificial intelligence (AI) and machine learning (69%), impact of
climate change (66%), urbanization and smart cities (42%) and
redefining global trade (40%). Investors believe these trends, on
average, will peak in importance in 2030.

As we hope you will gather from this edition of The Review, we

have been investing in many sectors supported by these trends
across our businesses for quite some time. This past year alone,
we expanded to new frontiers in India on the thesis of the country’s

4 THE REVIEW // MARCH 2020

LETTER FROM THE EXECUTIVE CHAIRMAN

A Unique
Growth Journey

Mohammed Alardhi
Executive Chairman

Investcorp is continuing to deliver solid progress on its strategic Investcorp’s assets under management (AUM) are at an all-time
objectives despite macroeconomic and geopolitical headwinds. high of US $31.1 billion. As we continue to grow, we remain
focused on advancing our Environmental, Social and Governance
The new year began with significant market volatility, demonstrating
(ESG) journey. This year, we will be rolling out new initiatives
the fragile state of various dynamics of the markets. From trade
to continue promoting best practices across our operations.
wars to Brexit, political gridlock in the US in an election year and
We believe these will help further build upon our Firm’s unique
tensions in the Middle East, the first calendar year quarter did
culture and world-class talent as key competitive advantages.
not see any shortage of geopolitical events and uncertainties.
We recognize that evolving macroeconomic and geopolitical
If the current state of global affairs were not complex enough,
dynamics will pose challenges in 2020 and beyond. We
the coronavirus outbreak has introduced a new challenge. The
are committed to remaining disciplined as we execute
virus’ impact continues to ripple across markets, disrupting trade
on our growth strategy. We have solid momentum and
and supply chains worldwide and affecting asset valuations. The
our objective of achieving US $50 billion in AUM over
longer-term implications of the new virus remain to be seen.
the medium term has never been more in sight.
Winston Churchill once said, “never let a good crisis go to waste”,
and one takeaway from the coronavirus outbreak for investors
is the importance of diversification, especially during periods of
extreme volatility. Over the last several years, Investcorp has been
taking decisive actions that have significantly strengthened the
resiliency of the Firm to both navigate through choppy waters and
also to take advantage of market opportunities and dislocations.

Today, Investcorp is stronger and more diversified than it has ever

Mohammed Alardhi
been. With our robust balance sheet, uniquely global offerings and
Executive Chairman
bespoke advisory services, we remain focused on continuing to
meet and exceed the needs of our clients. This past year, we were
honored to host numerous successful and highly-attended thought
leadership events in New York, Bahrain, Mumbai and Tokyo.

We are excited to continue our unique growth journey and

are encouraged by the favorable tailwinds for our industry.
Alternative assets globally are projected to reach approximately
US $15 trillion this calendar year, driven by increased
worldwide demand for exposure to alternative investments.

5
2 0 2 0 F I S C A L H A L F Y E A R R E S U LT S

Investcorp’s AUM
Grows to US $31.1 Billion

View from Investcorp NY offices on 280 Park Avenue

6 THE REVIEW // MARCH 2020

 Jan Erik Back
Chief Financial Officer

Despite a challenging macroeconomic backdrop and continuous trade and geopolitical tensions, Investcorp
delivered solid H1 FY 2020 results as its organic and inorganic growth strategy continues to deliver value to
clients and shareholders. The period was characterized by higher fee income, strong organic growth in AUM and
robust levels of investment and fundraising activity.

The Firm’s AUM increased by US $3.0 billion to US $31.1 billion as it continues to focus on reaching its target
of US $50 billion in AUM over the medium term. Net income reached US $48 million for the period, down 17%
compared to H1 FY19 as a result of lower investment returns and fair value adjustments to legacy investments.
Net income for the period, excluding fair value change of legacy investments, of US $59 million is 2% higher than
US $58 million for the six months ended December 31, 2018.

Investcorp enjoyed strong investment activity of US $1.9 billion, up from US $1.2 billion in H1 FY19, with
healthy placement activities and record-breaking deal-by-deal fundraising. This was supported by solid execution
on several key strategic initiatives, including; increased globalization of its distribution platform and advancement
of its strategy to diversify across products, clients and geographies with the closing of the Mercury Capital Advisors
and CM Investment Partners acquisitions.

Jan Erik Back, Chief Financial Officer of Investcorp said, “Our solid results reinforce our confidence in Investcorp’s
organic and inorganic growth strategy. We enter the second half of our fiscal year as a stronger and more
diversified firm, supported by a robust balance sheet and world-class talent. Our progress on our initiatives has
enhanced our firm’s resiliency. Looking ahead, we are confident in our ability to build upon our long track record of
growth and value creation.”

7
INTERVIEW - TERMINUS CEO TALKS ARTIFICIAL INTELLIGENCE

“It will take the

world from the
age of the internet
into the age of
intelligence.”
Terminus CEO talks with Investcorp

In January 2020, Investcorp and China Everbright Limited’s New Economy Fund completed
an investment in Terminus Technologies (“Terminus”), one of the fastest growing and most
technologically advanced companies in China.

Headquartered in Beijing, Terminus leverages Artificial Intelligence (AI) and the Internet of Things
(IoT) to make buildings, operations, communities and cities smarter through its comprehensive
portfolio of solutions. Since its founding in 2015, Terminus has grown into a unicorn and currently
has approximately 530 employees.

Investcorp connected with Victor Ai, CEO of Terminus, for this special Q&A column for The Review.
Victor Ai
CEO of Terminus How will AI technology and the Internet of Things take the world into the future? Which industries
will be most impacted?

The marriage of AI with the IoT (AIoT) has and will continue to unlock new, exciting opportunities
for our business and society at-large. These new generation technologies are empowering, upgrading
and transforming traditional industries.

We first defined the powerful combination of the “AIOT” in 2017, and we have since established a
four-step formula that we call the “AIOT LOOP.” We believe that traditional industries will complete
this loop through the following phases: 1) Transformative, 2) Online, 3) Intellectualized and 4)
Automatic. Highly digitalized industries are much further along in the AIOT Loop process and
we believe that traditional industries have only started to scratch the surface of the intelligence
transformation, creating vast opportunities for our business.

Our goal is to help traditional industries complete and accelerate their transformations so they can
realize the compelling benefits of combining AI, IoT and edge computing, all of which represent
Terminus’ core technology.

8 THE REVIEW // MARCH 2020

Please explain Terminus’ growth in achieving a unicorn valuation help communities identify, register and manage infected people.
since being founded in 2015. What has been the biggest surprise Residents can also report issues relevant to the virus on the platform.
in the company’s journey?
How do you envision Terminus’ work in AI will revolutionize urban
Terminus has become the fastest growing AIOT unicorn and management, population management and construction in the
No. 1 AI company in China. Our growth has been driven by an next decade?
entrepreneurial vision with a simple and straightforward business
The world is transforming from the age of the internet to the
plan – to serve our clients by unlocking the value AIOT technologies
age of intelligence. Smart cities do not only depend on the
offer. We began as a smart product driven organization and evolved
technology revolution, but also on the political, economic, cultural
into a solution driven business. Today, we are providing solutions to
and infrastructure development of the region and country. We
entire cities and we have increased our company’s value by more
believe with the roll-out of 5G and IoT technology, future urban
than 100 times over the past five years. We’ve also been fortunate
management will all be based on data and city operations will
to have great partners with China Everbright and Everbright Group
become much more efficient.
positioning Terminus as the group’s flagship platform company for
the science and technology sector. Terminus’ products and services have been designed to adapt to

There are exciting developments every day at Terminus, from filing these emerging technologies. Terminus has defined the smart city

new patents to the critical services we provide across more than evolution into four stages. Stage 1 is product driven; Stage 2 is
8,000 projects. Our clients include many Fortune Global 500 solution driven and Stage 3 is a City Level Solution Matrix. We
companies, including: CNPC, State Grid, Greenland Group and believe that China’s smart city will move from Stage 2 to 3 in the
China Poly Group, among others. Also, we serve many Fortune next three to five years with projects such as the Chongqing Future
China 500 companies, such as The National Palace Museum, Tech City providing a paradigm for the future. We’re pleased that
SINOGRAIN, iFLYTEK and Wanda Group. Terminus has been appointed to support this project, which we
believe will lay the groundwork for the standardization of products
We believe that our solutions and technology are world-class, but
for developing future smart cities.
it is still surprising to receive such positive recognition from our
clients for how our intelligent services empower them and help In the next five to ten years, we believe that smart cities worldwide
communities. will connect to each other as an internet of smart cities in Stage 4,
where the Internet of Everything will be achieved.
As you know, China has been suffering from the coronavirus, which
has been the largest surprise in the company’s journey. Many What’s next? How fast is AI technology advancing?
Terminus colleagues gave up their Chinese New Year to help defend
I believe that you can never find a new continent with an old
against the coronavirus. I feel lucky and inspired to have such
map. AI technology is advancing at a speed that our society has
dedicated employees that help achieve Terminus’ purpose every day.
never experienced before. I recall that Bill Gates once said, “We
Our staff purchased millions of masks and medical protective always overestimate the change that will occur in the next two
clothes from across the world, which were delivered to Hubei years and underestimate the change that will occur in the next
province. Moreover, Terminus is helping communities in China ten.” AI technology is quickly evolving, and we will see more and
to use intelligence technology to mitigate risks of the disease more applications. However, we will need to be patient to let AI
spreading. Terminus’ AIOT platform trained a new AI model to penetrate our daily lives.

9
INTERVIEW - WITH GILBERT KAMIENIECKY

Interview
with Gilbert
Kamieniecky

Gilbert Kamieniecky is a Managing Director and Head of Private Equity – Technology at

Investcorp. He leads Investcorp Technology Partners (“ITP”), which focuses on investing in high
growth, profitable, European-headquartered technology companies.
ITP recently launched a white paper on the Industrial Internet of Things (IIoT). What are the
key takeaways from the analysis and how is ITP applying them to its business?

Increased connectivity and digitization are permeating across all aspects of consumers’ everyday
lives, from smartphones to wearables and digital assistants. Despite significant technological
Gilbert Kamieniecky advancements, the industry is still in the very early stages of wide-scale deployment and adoption
Head of Private Equity - Technology of these technologies at an industrial level, which is often referred to as Industry 4.0. There is a
potentially massive and underpenetrated market for supporting industrial companies to realize
the value of these emerging technologies by leveraging real-time intelligence and data analytics
to enable smarter, safer and more efficient operations. Our analysis found that the total economic
impact of IIoT is expected to range between US $4-11 trillion by 2025, and we believe that the
majority will come from B2B applications, as manufacturers will increasingly need to maximize
efficiencies, minimize downtime and increase throughput.

ITP has been investing in companies with a focus on big data for more than 20 years. We identified
IIoT as a key investment trend as we were attracted to the space by the mission critical nature of
the industry’s products and purpose. Moreover, these businesses tend to feature strong levels of
recurring revenue, and high-quality intellectual property, which adds further upside and downside
protection from an investment perspective.

Notably, we invested in Fleetmatics, a fleet-tracking company which completed an initial public

offering on the New York Stock Exchange in 2012, and in December 2018 we acquired Ubisense,
a leading platform which provides a real-time digital twin of the manufacturing floor. Ubisense’s
unique ability to generate, analyze, and interpret large amounts of unstructured location data is
a mission-critical component of the operations of world-class manufacturers of complex objects,
ranging from Automotive to Aerospace and Defense. Also, as the market matures, we would expect

10 THE REVIEW // MARCH 2020

smart spaces to have applications for many other verticals, We believe that our relentless focus on analysis and due
underpinning the promise and versatility of IIoT technologies. diligence has been a major driver of our success. Some of
our most profitable investments started long before we
Can you elaborate on ITP’s focus on lower middle market ever interacted with the target’s management team. Our
tech companies and why you believe it is an attractive specialized expertise and dedication to understanding
segment to target? the market landscape in everything that we do, from our
We focus on acquiring controlling stakes in lower middle white papers to diligence on prospective investments, has
market businesses that we believe are ideally positioned enabled us to find companies that offer strong platforms
in their growth trajectories while generating the necessary for expansion.
cash-flow to support the business plan. Most often, these We also view our focus on the lower middle market as a
companies are led by dynamic founders looking for an key differentiator, particularly given Investcorp’s broader
institutional partner to help professionalize and scale their global scale and resources compared to other players
business. These leaders will frequently seek the opportunity that invest in our targeted markets. As a result, we have
to remain invested in the companies they founded, which made approximately 50 European investments including
we believe helps to further align interests in maximizing add-on acquisitions, and we have exited only one portfolio
value creation. company at a lower price than acquisition. Our reputation
and track record have made us a preferred strategic,
I also believe the European market, which is where our
operational and financial partner to many of the businesses
latest ITP Fund IV is looking to invest, benefits from an
that we seek to invest in.
attractive and wide range of investment opportunities.
In our experience, European businesses tend to have a What do you see on the horizon and where will the
“family-owner” oriented mentality, which typically prioritizes greatest opportunities come from?
building viable and profitable companies, and focus on
We invest in a very dynamic environment, and especially
a targeted market (e.g. the DACH region) instead of a
in technology private equity, the landscape is ever evolving.
Pan-European approach, due to different language and
Today, the opportunity to access alternative investments is
regulatory requirements. We have the capabilities and particularly important as companies are staying private longer
expertise to support portfolio companies increase their share and IPOs slowdown. This has led to significant economic
in existing markets and expand to new regions; historically, growth taking place outside public markets.
the majority of our exits have been made in the US, mainly
through sales to strategic buyers. I am proud of our team’s At a macro level, there are numerous economic and
geopolitical dynamics that have the potential to impact
track record in creating value for our clients, portfolio
markets. While no industry is immune to an economic
companies and stakeholders, which also resonates with the
downturn, we believe that our targeted subsectors and focus
founder-led businesses we interact with who are seeking an
on profitable B2B companies provide greater downside
institutional partner.
protection with favorable long-term growth opportunities.

What do you believe has been the secret to Investcorp and Looking ahead, we have identified Artificial Intelligence,
ITP business’ success? Industry 4.0 and Cybersecurity as key investment themes.
We have been successful investors in the lower mid-market These themes have, and will continue to have, major
for more than two decades and we continue to be encouraged implications for both traditional and emerging industries.

by the attractive opportunities in the space. First, we believe While this sentiment is widely accepted, we have been
that we have a world-class team and our specialized expertise surprised by how many companies have yet to adopt the
and hands-on approach are key ingredients to our success. critically important technologies of the future; this creates an
All our partners have successfully acquired, managed and even larger addressable market for the businesses we invest
exited middle market tech companies with attractive returns. in. It is an exciting time to be a technology-focused investor.

11
INVESTCORP’S GLOBAL SURVEY

Investcorp’s
Global Survey

12 THE REVIEW // MARCH 2020

 Rishi Kapoor
Co-Chief Executive Officer

Key Megatrends Investors Believe Will Shape the Global Economy

Over the Next 30 Years
Investcorp, in partnership with Mercury Capital Advisors, IMD Business School and ICR, polled 185 global investors
representing US $10+ trillion in AUM to explore the most compelling trends that are expected to shape the global
economy over the next 30 years and investors’ sentiment and allocations to these megatrends.

“As responsible stewards of capital, institutional investors recognize and have started planning accordingly for the market
forces that will influence investment portfolios and society in the years to come,” said Rishi Kapoor, Co-Chief Executive
Officer, Investcorp. “Identifying opportunities aligned with super-secular trends is one part of the process. Allocating
across the right markets, asset classes and time horizons is also critical, especially during periods of economic and
geopolitical uncertainties. In the last decade, we have seen investors increasingly seek exposure to private markets as an
optimal channel for tapping long-term trends as part of a diversified investment strategy. The findings from our survey
support the thesis that this dynamic shall continue and we will of course look to capture many of these trends as we seek
to drive long-term value creation for our investors.”

Participants
185 $10 Trillion 60%
Global AUM Senior
Investors Represented Executives

Trends Ranked by Importance

1 2 3 4 5
Aging Artificial Impact of Urbanization Redefining
Population Intelligence Climate & Smart Global
& Machine Change Cities Trade
Learning

Methodology: Investcorp commissioned the annual megatrends survey. Investors across a range of institution types were
approached by Mercury Capital Advisors to complete the poll. Data was collected and analyzed by IMD Business School in October
2019. Approximately 60% of respondents were senior executives at their organizations, identifying themselves as CIOs, heads of
investment groups, managing directors and partners.

13
INVESTCORP INDIA AT A GL ANCE

Mumbai Skyline

14 THE REVIEW // MARCH 2020

Investcorp entered the Indian market in 2019. Today, the Firm has an office in Mumbai with approximately
25 employees and has invested in companies across the consumer, healthcare, financial services and real
estate sectors. Take a closer look at Investcorp’s portfolio companies in India:

ASG Eye Hospital Limited Intergrow

ASG is a leading eye care hospital chain with more than 25 eye In line with Investcorp’s strategy to back businesses with
hospitals in India and one each in Kampala and Kathmandu. sustainable growth prospects in the consumption-driven Indian
Recognized for its clinical excellence, each hospital offers end-to- market, Investcorp made a US $11.3 million investment in
end ophthalmology services related to cataract, retina, glaucoma, Intergrow, a subsidiary of Synthite Group, which is the world’s
refractive issues, squint, occuloplasty, paediatric and neonatal largest producer of value-added spices with operations in India,
surgical facilities. US and China.

Bewakoof.com NephroPlus
In 2019, Investcorp invested in Bewakoof.com, one of the leading In November 2019, Investcorp closed a US $45 million
direct to consumer online apparel companies in India, focused on investment in NephroPlus, the leading dialysis service provider in
providing creative and distinctive fashion at affordable prices for India, to support the company’s organic growth plans as well as
trendy and contemporary Indians. its regional expansion across India and South East Asia.

Citykart ZoloStays
Citykart focuses on providing affordable apparel (average selling ZoloStays (Zolo), which Investcorp acquired in 2019, provides
price of US $3.50/piece) to lower income groups in smaller convenient full-stack co-living services to young professionals and
towns. Investcorp invested in Citykart in 2019. students in India who are looking for long-duration stays across
budget-friendly or premium price points.

InCred Finance
InCred Finance is focused on providing lending services in three
sectors, namely small & medium enterprises (SME), education and
consumer loans. The company leverages top-of-the-class technology
and credit analytics to generate superior risk adjusted returns.

15
INVESTCORP INDIA AT A GL ANCE

White Paper:
A Different
India

The scale of India’s urbanization is unprecedented and will

unlock significant investment opportunities across real estate,
consumer technology, financial services and healthcare,
according to Investcorp’s latest Insights white paper, “A
Different India: Opportunities from India’s Urbanization
Dividend and Structural Reforms.”

Published in December 2019, the white paper provides a

perspective on the scale and impact of urbanization in India and
analyzes how the Indian economy is poised for the potential
of significant growth over the next few decades, despite recent
challenges. India is projected to add 360 million people to its
urban areas between 2018 and 2050.

Based on urbanization levels, India appears today to be where

China was in 2000, with cities in India already contributing
75% of the country’s GDP. Furthermore, the Indian government
is changing the political and economic landscape with several
transformative pro-growth initiatives. These landmark reforms
will provide easier access to investing in India, which is fast
approaching its entry into the top five global economies.

“We believe that urbanization and the recent structural reforms

will unlock large markets in housing, consumer tech, healthcare
and financial services over the medium to long term,” said Rishi
Kapoor, Co-CEO. “We are leveraging these opportunities in India
by backing a new breed of entrepreneurs that are building efficient
and scalable business models that meet the needs of a young,
middle class, urban population by providing goods and services at
an affordable price point through innovation.”

Investcorp believes that its recent portfolio company investments in

India are poised to benefit from these trends.

16 THE REVIEW // MARCH 2020

 Direct Lending Investcorp has raised US $130 million in anchor commitments
for an Indian real estate direct lending initiative.

Initiative BAe Systems Pension Funds Investment Management Limited

is the cornerstone investor for this initiative, which will focus on
projects in the affordable and mid-market housing segment in
the top seven cities in India. This initiative remains subject to
regulatory approvals and registrations.

Ritesh Vohra, Partner and Head of Real Estate in India, said,

“The current slowdown in the residential markets as well as in
the flow of credit in India create an opportune timing for us to
launch this new lending initiative, which builds upon our track
record of similar credit investments in India. Affordable housing
has emerged as a dominant segment, augmented by government
efforts and the introduction of favorable policy reforms.”

Mumbai

Information Investcorp held its first India Information Session in December

2019, hosting insightful discussions on topics ranging from
trends in the real estate sector and investment opportunities to
Session perspectives from private equity-backed entrepreneurs.

The seminar commenced with a keynote address from Deepak

Parekh, Chairman of the Housing Development Finance
Corporation, who discussed the investment landscape in India.
Other distinguished speakers appearing at the event included
Deepak Bagla, Managing Director and CEO of Invest India, and
Ramesh Nair, CEO of Jones Lang LaSalle India.

Investcorp’s team also led and convened various sessions and

panels during the seminar. Timothy Mattar, Global Head of
Distribution, discussed the top megatrends shaping the global
economy, as identified by Investcorp’s inaugural annual survey.
Harsh Shethia, Partner in India, addressed the opportunities
stemming from India’s urbanization and structural reforms. Rishi
Kapoor, Co-CEO, delivered the concluding remarks of the event,
during which he reinforced Investcorp’s conviction in India’s
growth opportunities.

India Information Session

17
GROWING OUR FOOTPRINT IN ASIA

Growing our
Footprint in Asia

Osaka Shinsekai at Night Tsutenkaku Tower

Investcorp continues to build on the momentum of its growth in

Asia, with offices in Singapore and India and an expanding presence
across the region. Today, Investcorp’s Asia-based AUM represents
approximately US $2.6 billion. Since entering the Asian market,
Investcorp has made a series of key strategic hires and currently
employs more than 30 people across its offices in India and Singapore.

Partnerships
In China, the Firm announced an enhanced collaboration with China
Everbright, combining investment teams to invest in the Chinese
technology sector by establishing and jointly managing the China
Co-CEO Hazem Ben-Gacem with Executive Director and CEO of Everbright New Economy Fund I.
China Everbright Limited Zhao Wei
In November 2019, Investcorp announced the launch of the first-ever
private equity platform dedicated solely to investing in food brands in
Asia. The launch came in partnership with China Resources, one of the
world’s largest owners and distributors of food brands in Greater China,
and Fung Strategic Holdings Limited.

China provides a potential “once in a generation” surge in domestic

consumption growth as over 120 million Chinese households are set
to become middle class consumers over the next decade. The food
platform will focus on capturing the growth and market opportunities
of China’s highly fragmented food sector by tapping into the country’s
emerging middle class and their growing taste for new, healthier and
more premium brands.

18 THE REVIEW // MARCH 2020

 Engaging
with Key
Stakeholders

Group photo of Terminus visit

A delegation of executives led by Executive Chairman,

Mohammed Alardhi and Co-CEOs, Hazem Ben-Gacem and Rishi
Kapoor met with existing and potential investors and partners
across key Asia markets.

Among the highlights from the trip, which featured stops in Bangkok,
Beijing, Jakarta, Singapore and Tokyo, were a series of receptions
Investcorp arranged with Eisenhower Fellows. These events brought
together groups of prominent professionals across a range of industries
to discuss the most critical issues shaping global markets and their
impact on various sectors and local economies.

In Singapore, the Executive Chairman met with the Finance Minister

Lawrence Wong who provided unique insights into Singapore’s growth
and development plans. He also visited Investcorp’s first Asia-office,
which has grown from one to around 10 professionals since opening
and discussed the significant growth Investcorp is experiencing globally
Executive Chairman Mohammed Alardhi with Co-CEO Hazem Ben-Gacem and Senior
Advisor Savio Tung in Beijing and throughout Asia, with operations in Singapore, India and China.

Tokyo
Seminar
Head of ICM Jeremy Ghose speaking at the Tokyo Seminar

Executive Chairman Mohammed Alardhi, Co-CEO Rishi Kapoor,

Head of Credit Management Jeremy Ghose and Global Head
of Distribution Tim Mattar hosted a dinner event with leading
Japanese professionals. The Executive Chairman delivered opening
remarks for the evening, commenting on Japan’s economy and
lessons to take away in the current global environment of low
interest rates. He reiterated Investcorp’s focus on building strong,
Participants during the Tokyo Seminar long-term relationships in Japan.

19
GULF AND MENA

Investors
Conference
Bahrain

20
20 THE REVIEW // MARCH 2020
From Right to Left: Investcorp’s Board of Directors Member Hisham Al Saie, Executive Chairman Mohammed Alardhi during his opening remarks
Investcorp’s Executive Chairman Mohammed Alardhi, Investcorp’s Board of Directors
Chairman Dr. Yousef Al Ebraheem, Bahrain’s Minister of Finance and National
Economy H.E. Sh. Salman bin Khalifa Al Khalifa, Investcorp’s Board of Directors Vice
Chairman Khalid Al Zayani and Investcorp’s Co-CEO Hazem Ben-Gacem

Chairman of Investcorp and Aberdeen Standard Investments Joint Venture Member of Parliament, United Kingdom, Rt. Hon. Sir Michael Fallon
Sir Gerry Grimstone

Investcorp held its 2019 Investors Conference at the Bahrain Four Economy attended the dinner along with other distinguished
Seasons in November under the patronage of His Royal Highness guests, including: Sir Michael Fallon, Member of British Parliament
Prince Salman Bin Hamad Al Khalifa, the Crown Prince, Deputy and Member of Investcorp’s International Advisory Board, and
Supreme Commander and First Deputy Prime Minister. Sir Gerry Grimstone, Investcorp Board Member and Chairman
of the Infrastructure joint venture between Aberdeen Standard
During his keynote address, Executive Chairman Mohammed
Investments and Investcorp.
Alardhi discussed Investcorp’s successful execution on its growth
strategy amidst an evolving macroeconomic and geopolitical More than 250 investors attended the conference to explore the
landscape. “We are now more global than ever as we’ve expanded shape and depth of investment opportunities across the globe.
into areas that we know well. We’ve accomplished this growth Speakers and attendees from the US, Europe, India, China,
while the world witnessed tectonic shifts.” Indonesia and the Gulf opined on an array of topics including
private equity, wealth management, infrastructure, real estate and
A gala dinner was hosted by the Executive Chairman, and
new growth markets.
Investcorp was honored to have His Excellency Shaikh Salman
bin Khalifa Al Khalifa, Bahrain’s Minister of Finance and National

21
GULF AND MENA

Tiryaki
Agro Exit

Investcorp at Tiryaki Agro

In January 2020, Investcorp successfully completed its exit from North America. Tiryaki Agro more than doubled its sales during
Tiryaki Agro, the largest agricultural commodity trader in Turkey and Investcorp’s period of ownership from approximately US $600
the world’s largest supplier of organic grains and oilseeds, with sales million to approximately US $1.3 billion.
of around US $1.3 billion. This marks the first exit of Investcorp’s
“At Investcorp, we are proud to support Tiryaki Agro through its
portfolio in Turkey. The proceeds will be paid in tranches.
journey to become the world’s largest supplier of organic grains
Investcorp partnered with the Tiryakioglu Family in September and oilseeds. Tiryaki evolved to become a prominent international
2010 to support its aspired transformation from a family managed player with operations across five continents from the Americas
domestic business into an institutionalized, international leader. to the Middle East with facilities in 14 countries, and offices
Through Investcorp’s partnership, Tiryaki Agro expanded its in the United States, Canada, Turkey, and the UAE, and still
infrastructure network, strengthened its capital structure, and continues to expand its areas of activities with procurement from
reinforced its management with professionals. Furthermore, the 25 countries and exports to 80 countries,” said Alptekin Diler,
company expanded inorganically by acquiring Sunrise Foods Principal at Investcorp and Board Member of Tiryaki Agro.
International, the number one distributor of organic grains in

Investcorp Visits
NEOM

From Right to Left: Managing Partner of Infrastructure JV with Aberdeen Standard

Investments Sami Neffati, Co-CEO Hazem Ben-Gacem, Principal IRM Nahar Houthan, and
Managing Director IRM Yasser Bajaser

A delegation of Investcorp leadership, including Hazem Neom is an anchor part of the Saudi 2030 Vision and
Ben-Gacem, Co-CEO; Sami Neffati, Managing Partner of planned to be the world’s most eco-friendly and futuristic
Infrastructure JV with Aberdeen Standard Investments; Yasser city. Investcorp’s visit was part of its early stage evaluation of
Bajsair Managing Director, Investor Relationship Management potential infrastructure and real estate investment opportunities
(IRM); and Nahar Houthan, Principal, IRM; visited Neom, in Neom.
a smart mega-city being built from the ground up in Saudi
Arabia. Neom is expected to be 33 times the size of New York Members of the team also attended the Future Investment
City and has been described as the “world’s largest and most Initiative in Riyadh in October 2019. The annual international
ambitious infrastructure project” – spanning 10,230 square forum provided a platform for expert-led debates on key trends
miles and requiring at least US $500 billion in investment. and issues impacting global investments.

22 THE REVIEW // MARCH 2020

 Global Investors
Visit Investcorp

Michael Milken
Chairman of the Milken Institute

Dr. Deepak Chopra Global Investors with Investcorp’s team

Founder of the Chopra Center for Wellbeing

Investcorp hosted a group of international investors led by Michael Milken, Chairman of the
Milken Institute, at its Bahrain office.

The session started with welcome remarks by Co-CEO Hazem Ben-Gacem, which was followed
by a speech from Michael Milken in which he stressed the importance of having a shared
mission and how every organization’s greatest asset is its people. This was followed by a Q&A
session with Dr. Deepak Chopra Founder of the Chopra Centre for Wellbeing moderated by
Louise Tabinner, Senior Advisor at the Milken Institute. Dr. Chopra discussed the seven pillars of
wellbeing and how leaders can better manage and inspire their teams.

The session concluded with two presentations about investing in the region by Walid Majdalani,
Head of Private Equity MENA, and Sami Neffati, Head of Infrastructure, presenting to the global
investors about opportunities across the GCC in private equity and infrastructure as the GCC
economies continue to grow and diversify.

23
REAL ESTATE IN US AND EUROPE

In 2019, Investcorp made its largest real a robust industrial real estate portfolio of
estate portfolio acquisition in the Firm’s strategically-located assets in key markets.
history when it acquired two industrial
US
The opportunity to acquire these properties
and logistics real estate portfolios for is consistent with our established criteria for
approximately US $800 million.
real estate investments that generate stable
Industrial With consumers and businesses increasingly cash flows, have high occupancies and
demanding faster deliveries, Investcorp believes are located in some of the most desirable
Portfolio that industrial real estate assets close to major
population centers will continue to become
industrial, logistics hubs across the country.
With e-commerce continuing to drive demand
more important to efficient supply chains and for industrial and logistics assets nationally, we
enabling e-commerce. In line with this thesis,
are pleased to further enhance our platform
Investcorp acquired a 91.5% leased portfolio
through this transaction.”
of industrial and logistics properties located in
five major metropolitan areas: Atlanta, Georgia; Investcorp ranked as the second largest
Chicago, Illinois; Dallas, Texas; Charlotte, North international buyer and fourth largest
Carolina and Memphis, Tennessee. international seller of US real estate in
Herb Myers, Managing Director in US Real calendar year 2019, according to Real
Estate said, “We have carefully assembled Capital Analytics.

24 THE REVIEW // MARCH 2020

 Rotterdam

Neil Hasson
Managing Director and Head
of European Real Estate

Rotterdam Acquisition European Trends & Updates

Investcorp entered the Dutch real estate market this past In November 2019, Investcorp’s Real Estate team released a
November through its acquisition of a grade A modern office new white paper, “European Real Estate Trends and Updates,”
complex, The Mark, in Rotterdam. The acquisition was made examining European real estate markets and opportunities.
in partnership with Proptimize, a Netherlands-based real estate
The paper found that European industrial properties remain
asset management and advisory firm.
attractive as the urban logistics sector continues to be supported
The Mark is located in Brain Park, an established office park four by the rise of e-commerce, while supply in suitable locations is
kilometers east of Rotterdam, which is the second most populous constrained. Office performance in the UK, Germany, Netherlands
city in the Netherlands and conveniently located in the heart of the and Ireland remains strong, despite Brexit concerns. The German
Randstad, one of the mostly densely populated regions in Europe. residential market remains buoyant, although difficult to access
from an investment perspective.
Neil Hasson, Managing Director and Head of European Real Estate,
said, “We are making strong progress growing our European real
estate portfolio and are pleased with the opportunities we are
seeing, particularly in the Netherlands and the Randstad. We
remain focused on identifying and acquiring attractive real estate
assets in core plus logistics and office markets across Europe that
offer stable cash flows and upside potential.”

Munich Office Complex

Munich Office Complex
Investcorp continued to strengthen its European real estate
footprint by acquiring an office complex in Munich, Germany.
Munich is Germany’s largest office market and Europe’s third
largest office market.

“The Munich office market represents an attractive investment

opportunity given the combination of historically low vacancy,
a limited supply pipeline and the city’s strong, underlying
economy.” said Neil Hasson, Managing Director and Head of
European Real Estate.

Since its launch in June 2017, Investcorp’s European real

estate platform has grown its managed assets to approximately
US $800 million.

25
CONTINUED STRENGTH IN THE US

Investment in Dave Tayeh

Head of Private Equity
North America

Fortune

Building on the Firm’s strong track record partnering with founder-

led businesses, Investcorp invested in Fortune Fish & Gourmet, a
leading superregional specialty distributor of seafood and gourmet
food products that is strongly positioned to expand across the US.

Founded in 2001 by CEO Sean O’Scannlain, Fortune has

grown to become one of the largest seafood and specialty food
distributors in the US by cultivating a loyal and diverse customer
base with a commitment to sourcing the freshest, highest quality
products and delivering industry-leading service levels.

Fortune distributes fresh seafood, frozen seafood and gourmet foods,

offering more than 12,000 SKUs to fine-dining restaurants, grocery
stores, hotels and other customers, primarily across the Midwestern
US. The Company has continually expanded its geographic footprint
by acquiring specialty distributors in strategic markets.

“Specialty foodservice distribution in the United States is a highly

fragmented, resilient and growing US $40 billion market,” said Dave
Tayeh, Head of Private Equity in North America. “We believe that
Fortune is well-positioned to capture significant share with its unique
platform as a scaled, specialty seafood enterprise delivering superior
product quality and service across a wide breadth of products. We
have a long history of partnering with founder-led businesses, and
we look forward to working with Sean and his talented team over the
coming years.”

Fortune Fish & Gourmet operates under a comprehensive seafood

sustainability policy. This includes industry-leading standards for
suppliers to ensure the sourcing and sale of environmentally and
socially responsible seafood, as well as product donations to food
assistance programs focused on eliminating hunger. Fortune Fish &
Gourmet is MSC and ASC certified and is also a founding member
of Sea Pact, an alliance of companies dedicated to improving the
social, economic and environmental sustainability of global seafood
supply chains.

Fortune represents Investcorp’s fifth partnership with a US-based

founder-led business over the last two years.

26 THE REVIEW // MARCH 2020

 Modernizing
New York Offices

Investcorp NY offices

Consistent with the Firm’s dedication to create an open and

inclusive work environment, Investcorp has launched a series
of projects to modernize its offices. This project started with
Investcorp’s New York office, which was recently renovated to
improve productivity. Before commencing the enhancements,
the project team conducted briefing sessions with employees
to solicit input to make this a collaborative process. The
renovation project will continue across Investcorp’s global
office network to encourage greater collaboration, inclusion
Inside views from NY offices and productivity.

ENHANCING INTERFACE AND INFRASTRUCTURE

Investcorp
Launches New
Website

Scan the QR code to visit Investcorp recently launched its new website featuring the
Investcorp’s new website Firm’s growth journey, global capabilities, rich history and

Follow us on our commitment to being a responsible corporate citizen. Visit

social media channels: www.investcorp.com, to stay informed on the Firm’s latest
news and activities.

27
AROUND EUROPE

Daniel Lopez-Cruz: Daniel Lopez-Cruz

Head of European

50 Most Influential
Private Equity

in European
Private Equity

In December 2019, Daniel Lopez-Cruz, Head of European investments across a wide range of industries and European
Private Equity, was recognized by Private Equity News as one of countries. He currently sits on the boards of Agromillora,
the 50 Most Influential in European Private Equity. Cambio Healthcare Systems, SPG Prints and Vivaticket and
has previously served on the boards of Polyconcept, Icopal,
Since August 2018, Daniel has served as Head of the European
Asiakastieto and Esmalglass.
Private Equity business, overseeing a team of more than 20 people
managing approximately US $2 billion. Daniel joined the Firm in
2005 and has since been responsible for a number of private equity

Credit Management Jeremy Ghose

Head of ICM

Annual Reception

In January 2020, the Investcorp Credit Management (ICM)

team held their ninth annual reception in London hosting
more than 200 distinguished guests. The event brought
together leading professionals in the credit management
industry, many of whom have contributed to ICM’s success.

Jeremy Ghose, Head of ICM, addressed guests, providing his

analysis on credit markets over the past year, predictions for
2020 and thanking attendees for their support. The London
reception was followed by a similar annual reception in New
ICM Reception York several weeks later.

28 THE REVIEW // MARCH 2020

AWARDS

Investcorp Wins
Second Consecutive
“Firm of the Year:
MENA”
For the second consecutive year, Investcorp was recognized
as “Firm of the Year: Middle East and North Africa” in
Private Equity International’s 2019 Awards series.

Private Equity International’s Awards are held annually

and voted on entirely by industry participants after the
publication’s editorial team researches and compiles
nominations of distinguished firms across sectors,
geographies and other categories. Investcorp was named
Firm of the Year: PE MENA in Private Equity International’s
2018 Awards series.

In October 2019, Investcorp was profiled by Private Equity

International (PEI) as a firm that is changing today’s private

Investcorp Named equity landscape, chronicling the Firm’s rich history and
impressive growth over the last several years.

as a Firm Changing “We have given our investors the option to invest in India,

the Private Equity

South-East Asia, China and North America. What we have
acquired and added to the business really gives us the

Landscape
foundation to execute to US $50 billion. I believe even if we
don’t do any more acquisitions, we have enough,” Executive
Chairman Mohammed Alardhi told PEI in an interview.

For the feature, PEI interviewed Co-CEOs Rishi Kapoor and

Hazem Ben-Gacem on the Firm’s deals and growth initiatives.
Rishi discussed Investcorp’s expansion in the US, and Hazem
claimed that Investcorp’s success has been and will continue
to be driven by earning the trust of its clients.

29
STRENGTHENING CORPORATE CITIZENSHIP

Environmental,
Social and
Governance
Highlights

Environmental, Social and Governance (ESG) issues In 2019, the Firm introduced a new ESG policy
are becoming increasingly important for companies that will see it deepen its existing commitments.
Investcorp’s purpose goes beyond excellence in
of all sizes as they look to attract capital, retain
alternative investing to encompass broader issues
talent, protect against risks and meet growing
of social good that align with its values.
expectations to make a positive impact.
The Firm has also instituted recycling and
Investcorp takes great pride in its reputation as a
plastic reduction efforts across its global offices
strong corporate citizen and works hard to promote
and is looking to continue strengthening the
best practices and sustainable value across all
ESG performance of its portfolio companies
global operations – not just because it is good
and operations. The Firm remains focused on
business, but because it is the right thing to do.
continuing its ESG journey and working with its
stakeholders to drive sustainable value.

The Firm’s ESG policies and highlights

are available on Investcorp’s website

30 THE REVIEW // MARCH 2020

 As part of Investcorp’s ongoing partnership with the Gulf non-profit
INJAZ Al-Arab, Ramzi AbdelJaber, Chief Administrative Officer,

Investcorp Supports presented the “Investcorp Value Creation Award” to a winning student
group during this year’s conference, which took place in Muscat, Oman.

Injaz Al Arab Investcorp has supported INJAZ Al-Arab since its inception, serving
as a co-sponsor of initiatives, as a donor and fundraiser, and as an
advisor and active participant, including as a member on its board.
INJAZ Al-Arab was founded on the belief in the boundless potential
Ramzi AbdelJaber of Arab youth. The non-profit serves as a regional operating center
Chief Administrative Officer for Junior Achievement Worldwide, providing education and training
in workforce readiness, financial literacy and entrepreneurship
across the Arab world. Over 4,200 school, and 346 universities
participated in Injaz Al Arab’s program over the years, benefitting
more than 3,500,000 students. The Company Program that Injaz
provides offers youth in the MENA region an opportunity to learn
how to transform business ideas from concept to reality.

In addition to Investcorp’s advising and fundraising support

for the organization, Wassim Hammoude, Principal in Private
Equity MENA, and Habib Abdur-Rahman, Principal, facilitated
a customized session and competition for university students.
Together, Wassim and Habib presented a case study during the
session on Theeb Rent-A-Car.

Ramzi AbdelJaber, Chief Administrative Officer said,“At Investcorp,

we believe in empowering young people. Through supporting Injaz
Al-Arab, we are not only unlocking the potential of Arab youth, but
Injaz Al-Arab Signature Award Panel are also paving their way to become future business leaders.”

Women’s Alternative
Investment Summit

Investor Relationship Management US Principal Elena Ranguelova

In November 2019, Portfolio Strategist Elena Ranguelova spoke alongside industry thought leaders at the 11th Annual Women’s Alternative
Investment Summit hosted by Kirkland & Ellis at the Plaza Hotel in New York City. During her on-stage panel, Elena discussed the
investment landscape for hedge funds and strategies that are expected to deliver performance in 2020, with emerging managers and niche
strategies identified as potentially attractive options in the current environment.

The Summit convened more than 400 senior-level women from the world’s leading institutional investors, private equity and venture capital
firms and other alternative investment fields such as real estate, credit, hedge funds, infrastructure and real assets.

31
New York | London | Bahrain | Abu Dhabi | Riyadh | Doha | Mumbai | Singapore