(Bloomberg) — Investcorp Holdings, the Middle East’s biggest alternative investment firm, aims to double its infrastructure assets under management to $10 billion over the next five years.
As part of the expansion, Bahrain-based Investcorp also is looking to raise a dedicated $1.5 billion infrastructure fund to invest globally, Co-Chief Executive Officer Hazem Ben-Gacem said in an interview Monday at the World Economic Forum in Davos, Switzerland.
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“We see tremendous opportunities to grow our infrastructure business, especially in transport and logistics,” Ben-Gacem said. “Our investors are looking for more exposure in this sector.”
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The Middle Eastern investor recently bought half of Corsair Capital’s infrastructure business, which owns airport operator Vantage Airport Group. Investcorp has secured a deal to make an equity investment in the development of Terminal 6 at New York’s John F. Kennedy International Airport, Ben-Gacem said, a project that’s being led by Vantage.
Private Credit
Investcorp is looking to deploy $500 million to $1 billion in Gulf Cooperation Council countries every year across all its asset classes like private equity, infrastructure and real estate, the co-CEO said. The firm, known for backing Tiffany & Co. and Gucci, is looking to list at least one Gulf business this year and has already listed four businesses in the last two years.
“Our investments in the Gulf region go back several years, but the macroeconomic trends and the stability we see in the region are making it an all the more important investment destination for us,” Ben-Gacem said. “International investors in places like China are more keen than ever for opportunities in the region. We think we can provide them with meaningful opportunities.”
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Investcorp manages about $53 billion overall. It’s planning to expand its private credit business and is seeking to raise about $1 billion for investment in Europe and the US, according to Ben-Gacem.
Alternatives Push
“Private credit continues to generate healthy returns for investors and we are looking at ways to further grow our business,” he said.
The alternative asset manager continues to look for opportunities in China, India, Japan and Southeast Asia and is one of the few firms doing control buyout deals in these markets in the mid-market space, Ben-Gacem said.
Major investment firms have been boosting their exposure to infrastructure. BlackRock Inc., the world’s biggest money manager, said last week it will buy Adebayo Ogunlesi’s Global Infrastructure Partners for about $12.5 billion as it seeks to make long-term bets on energy, transportation and digital infrastructure.
Investcorp counts some of the Middle East’s wealthiest royals and business moguls among its backers. In November, an investment vehicle started by the group raised $451 million in an Abu Dhabi initial public offering.
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