Investcorp Considers Public Listing, Targets $100 Billion AUM
Investcorp, the Middle East's largest alternative investment firm, is exploring a public listing in the next three to five years, aiming to double its assets under management (AUM) to $100 billion.
Vice Chairman Rishi Kapoor stated Investcorp is considering London or New York as potential listing venues. The firm recently listed its investment vehicle as a separate entity on the Abu Dhabi stock exchange in 2023.
"Three to five years is an appropriate timeline to build the scale and reach a position where we can offer liquidity or value to our shareholders," Kapoor said.
Founded in 1982, Investcorp currently manages $55 billion in assets, including investments in luxury brands like Gucci and Tiffany & Co. The firm has diversified into areas such as private credit.
The alternative investment industry has seen a surge in activity as global asset managers seek growth and diversification through acquisitions and new asset classes. In the Middle East, National Bank of Kuwait's alternative investment business was acquired by Janus Henderson.
Kapoor noted the potential for Investcorp to participate in the 401(k) retirement savings market, which holds an estimated $12 trillion in the U.S. The industry is reportedly lobbying the government to include alternative investments in 401(k) plans.
"The democratization of private market assets is progressing, and becoming an integral part of the 401(k) system would be a natural evolution," Kapoor said.
He emphasized the importance of prudent allocation of alternative assets, given their illiquidity compared to public markets. "It won't be a significant proportion, but given the size of 401(k) assets, it could amount to a substantial investment."