AFRICA – Investcorp, a global manager of alternative investment products, secured funds from HarbourVest to provide liquidity for its US$866m Middle East and North Africa (MENA) private equity investment portfolio.
The structured secondaries transaction also includes an additional US$70m of new capital for follow-ons and up to US$60m for new investments. As part of the deal, Investcorp will continue to manage the portfolio and will retain an interest.
Hazem Ben-Gacem, Investcorp’s co-chief executive officer, said in a statement: “This milestone deal is a testament to the attractiveness of Investcorp’s MENA portfolio to global institutional investors.
The new transaction is subject to the relevant regulatory approvals and other customary closing conditions.
Investcorp will maintain an interest in the portfolio and Investcorp’s Mena private equity team will continue to manage the portfolio, the company said.
“This complex secondary transaction highlights our ability to work with partners to create innovative liquidity solutions that can benefit multiple parties.”
In January 2019, Investcorp signed two similar deals for its European private equity assets. One was the sale of two portfolio companies in Investcorp’s Technology Partners Fund to a continuation vehicle supported by HarbourVest.
Since its establishment in 1982, Investcorp has completed over 185 private equity deals in the US, Europe, the Mena region and Asia, across a range of sectors including retail and consumer products, technology, business services and industrials.
The firm more than tripled the level of inflows into its private equity arm in the 12 months to 30 June, with placements and fundraising reaching US$1.9bn.