Investcorp To Increase Bets In India With Bigger Deals And Strategic Shift

Bahrain’s Investcorp, renowned for its investments in luxury brands such as Gucci, Tiffany, and Saks Fifth Avenue, is now looking to scale up its investments in India. The firm plans to focus on larger deals and tweak its investment strategy, continuing to expand its footprint in the country.

Investcorp Sees Strong Growth In Indian Market

Investcorp entered India in 2018 with the acquisition of IDFC’s alternatives business and has since deployed over $1 billion in mid-market deals across private equity and real estate sectors.

Rishi Kapoor, vice chairman and chief investment officer of Investcorp, revealed that the firm has primarily focused on asset-light companies in sectors such as consumer and retail, healthcare, financial services, B2B, and technology. Its portfolio includes investments in companies like Global Dental, Wakefit, Xpressbees, Nephroplus, Safari Industries, InCred, Citykart, Zolo, Freshtohome, and Intergrow Brands.

The firm’s largest acquisition in India came recently with the Rs 1,000 crore purchase of NSEIT, the digital technology arm of the National Stock Exchange, reflecting Investcorp’s expanding influence in India’s mid-market space.

Investcorp In Middle Market Focus

Kapoor emphasized that Investcorp has differentiated itself by operating in the middle market, a space largely untapped by global players who typically focus on mega deals.

“We are the only global firm operating in the middle market. Our last deal was the National Stock Exchange IT services business, which was a $100 million equity cheque,” Kapoor said during an interview at the World Economic Forum in Davos.

Investments In Real Estate & Infrastructure

In addition to private equity, Investcorp has also been making substantial investments in India’s real estate sector, particularly in logistics and warehouses. The firm initially invested privately in partnership with NDR Warehousing, the third-largest warehousing platform in India, and later listed the entire portfolio as an infrastructure Real Estate Investment Trust (infra-REIT).

Kapoor highlighted the firm’s impressive returns, noting that Investcorp has returned more than 50% of its first fund, which raised capital in 2019. “We’ve achieved attractive double-digit returns through public market exits, strategic sales, private equity secondaries, and public listings,” he added.

Investcorp’s Evolution: A Global Asset Manager

Founded in 1982 by Iraq-born financier Nemir Kirdar, Investcorp quickly made a name for itself by investing in West Asia’s petro-dollar wealth.

The firm made early investments in iconic luxury brands like Tiffany and Gucci. Today, Investcorp manages $53 billion in assets across 12 offices in the US, UK, the Middle East, and Asia.

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