30 Jan 2008

January 30, 2008 – Investcorp, the asset management firm specializing in alternative investments, today announces its interim results for the six months ended December 31, 2007 (H1 FY08). Investcorp’s financial year runs July 1 to June 30, and these are Investcorp’s Fiscal 2008 mid-year results.

Highlights for the period:

• Return on Equity of 15% (annualized)
• Client Assets Under Management at $10.4bn (vs $9.0bn at FY07 year end)
• Gulf Placement activities raised $776m ($312m in H1 FY07)
• Non-Gulf placement activities raised $513m ($215m in H1 FY07)
• $586m in new commitments received from clients for closed-end funds
• Private Equity team signed acquisition of Randall-Reilly Publishing in January 
• Hedge Fund yield of 10.8% (annualized) on proprietary co-investments over the period
• Real Estate deployed $268m in new capital in transactions with aggregate value of over $1.9bn
• Final close of Technology Fund III signed in January for $500m
• Gulf Growth Capital completed registration of Gulf Opportunity Fund I with the Central Bank of Bahrain
• Doubling of volume of GDRs traded on the London Stock Exchange over the previous six months
• 100:1 share split, subject to final regulatory and shareholders’ approval, in order to facilitate trading activity of Ordinary Shares on the Bahrain Stock Exchange
• Basel II compliant from January 1, 2008

	6 months to  December 31, 2007	6 months to December 31, 2006	Change (%)
Net Fee Income	54.6	52.4	4
Net asset based income ($m)	33.2	27.5	21
Net income for the period ($m)	87.8	79.8	10
Total assets ($bn) vs. June 2007	4.8	4.3	12
Earnings per ordinary share	123	106	14

Nemir A. Kirdar, Executive Chairman and CEO, said:

“Despite difficult economic conditions and uncertain credit markets, Investcorp has generated strong financial results for the half year – once more confirming the strength and validity of its business model.

“Our performance in the first six months of fiscal 2008 (H1 FY08) reflects record levels of fundraising and strong returns from our hedge funds program.  With well-diversified income streams across multiple alternative asset classes, Investcorp is well placed for the challenges ahead.”

The volume of Global Depositary Receipts (“GDRs”) traded on the London Stock Exchange doubled over the previous six months. In order to facilitate trading activity of Ordinary Shares on the Bahrain Stock Exchange (“BSE”), Investcorp has decided to proceed, subject to final regulatory and shareholders’ approval,  with a 100:1 share split of its Ordinary Shares on the BSE which would result in a 1:1 ratio of GDRs to Ordinary Shares.