The Investcorp Newsletter

Investcorp acquires stake in global advisory firm AlixPartners

Two new Board Members Investcorp Credit Management Sale of PRO Unlimited Executive Chairman addresses ECSSR in Real Estate $400m of new assets in New York, California and Nevada Ageras Second technology investment

The Review | April 2017 Contents Two Board new Members 06 Mohammed Alardhi Letterfrom 05 Executive Officers Note from Co-Chief 04 investment Arrowhead: US new 10 AlixPartners acquisition ofstake in Investcorp completes 09 PRO Unlimited Sale of 08 Management onboard Investcorp Credit 07 13 Portfolio Companies News: Baker Acquisition Wrench Completes 13 Hi-Tech InspectionServices majority stake inOman’s NDT CCS to acquire 12 Add-on acquisitions: marketplace in European online Ageras: majoritystake 11 Optiv Security Investcorp SellsStake in 15 in Istanbul Orka HoldsResellers’ Event 14 forCorneliani Ambitious Expansion Plans 14 Innovation POC Award Winning

16 $400 Million Investment in New York, California, and Nevada

18 Nut Tree Reaches $400 Million Asset Milestone 19 Mohammed Alardhi address at the ECSSR 20 UAE Ambassador to the US hosts Alardhi & El-Erian as Guests of Honour 21 Digital Marketing Symposium 22 Investcorp Student Innovation Prize 23 New Joiners 4

Note from Co-Chief Executive Officers New opportunities

t has been a busy start to 2017 matching SMEs and micro-businesses become more competitive through every for Investcorp, which has seen us with professional services providers stage of the business cycle. maintain our steady flow of deals such as accountants and lawyers. In this While the economic and business Iacross all markets where we are active. increasingly digital world, we see Ageras landscape around us continues to We were also pleased to be able to as being a prime candidate for growth change, we will use all of our investment distribute $1.1 billion in the six months and we are eager to help the company expertise to originate deals that offer the to 31 December, 2016, which represents expand across the continent. biggest opportunity to create enhanced a 123% increase on the same period in The U.S. has been a particularly active value. Across the U.S., Europe and the 2015. market for Investcorp over the last few Gulf, we see pockets of real value across Looking at the Gulf, our portfolio months, which is a reflection of our a range of asset classes and we are company NDT Corrosion Control bullish outlook for the U.S. economy. refining our strategies to capitalize on Services (‘NDT CCS’) completed the On the Real Estate front, we recently them. acquisition of Hi-Tech Inspection invested in three multifamily housing Services, Oman’s largest provider of properties in New York, California, and Mohammed Al-Shroogi & Rishi Kapoor industrial non-destructive testing and Nevada for a total purchase price of Co-Chief Executive Officers inspection services. This transaction nearly $400 million. This takes our total creates the largest team of specialized U.S. Real Estate investment in the last 18 non-destructive testing and inspection months to $1.2 billion. Elsewhere in the technicians in the GCC and will allow the U.S., alongside two prominent pension new company to capitalize on the steady funds, we invested in AlixPartners, a growth we see in the region’s industrial leading global financial and operational sector. consulting firm. We are particularly excited by this deal because AlixPartners Meanwhile, in Europe, our Technology is led by very experienced team of senior team reached an agreement to acquire Managing Directors, who work with the a majority stake in Ageras, a fast world’s largest companies to help them growing European online marketplace 5

Letter from Mohammed Alardhi Current dynamics recently had the pleasure of speaking significant at the Emirates Center for Strategic progress on our Studies and Research (ECSSR) European Real I22nd annual conference in Abu Dhabi. Estate initiative While we discussed a range of issues and we expect related to oil and how the Arab world to announce our is positioning itself for the future, the first deal in the themes that emerged also added weight coming months. to the significance I see in the changing Meanwhile, in way states, corporates and individuals the Gulf, we are are interacting with one another. At close to launching Investcorp, we have observed these our healthcare changing dynamics for some time and fund. This will be we have been reconfiguring ourselves our first sector- - in-line with the strategy I unveiled specific fund in in 2015 - in order to ensure we are the region and, well-tuned for the new economic and we believe, will investment landscape. be an opportunity to capitalize on We are already seeing the results of diversification this strategy. With more than $21.4 and privatization billion in , in the region. Investcorp today is in a different league Investment Board (PSP Investments), of global asset managers. However, our Looking at strategic initiatives, we are two of the world’s largest and most job is far from done. We have now set delighted to welcome to our Board of sophisticated institutional investors. ourselves the target of $100 billion in Directors H.E. Sheikh AbdulRahman assets under management. Our actions Bin Saud Al-Thani from Qatar, Waleed Investcorp built its name on delivering today will shape Investcorp for decades Al Mokarrab Al Muhairi from the UAE, the highest level of service and risk to come, which is why we will remain and Abdullah Al-Humaidi from Kuwait. adjusted returns to our clients – this is agile and move quickly - but every step Investcorp is incredibly fortunate to be in our DNA and will never change. As we take will be carefully measured. We able to benefit from their experience we continue to grow and evolve, we are expanding our capabilities and we as we embark on the next chapter in will never forget or forgo our history are deploying new strategic initiatives, the Firm’s history. We also recently and the importance of building lasting which will provide us with greater scale saw Mubadala complete the second relationships with our clients and and efficiencies to deliver better value phase of its investment in 20% of delivering best in class performance. for our clients and shareholders. Investcorp’s shares. We are very proud of this partnership, which we see as On the capabilities front, we officially being an important development in the launched Investcorp Credit Management institutionalization of our shareholder (ICM) last month. With the changing base. regulatory environment squeezing Mohammed Alardhi banks’ capacity to lend, we see this Finally, I would like to touch on our Executive Chairman as a tremendous opportunity for recent investment in AlixPartners, which Investcorp to grow an exciting new is a great example of how Investcorp can line of business. Elsewhere, Investcorp partner with other global institutional Technology Partners Fund IV made its investors on specific deals. In the case first investment - deploying capital into of AlixPartners, we invested alongside an exciting online professional services Caisse de dépôt et placement du Québec platform. Also in Europe, we are making (CDPQ) and Public Sector Pension 6

Board Members

Two new Board Members n January 2017, Investcorp welcomed in National and International Peace from two new members to its Board of John F. Kennedy School of Government, Directors, Sheikh Abdulrahman Bin Harvard University. ISaud Al-Thani, a Qatari national, and Mr. Abdullah Saud Alhumaidhi, a Kuwaiti Mr. Abdullah Saud Alhumaidhi is a national. member of the Board of Directors and a member of the Executive Committee Sheikh Abdulrahman Bin Saud Al- of the Board of Directors of the Kuwait Thani is currently a Minister of State Investment Authority. He is the Vice in Qatar, a director at Qatar National Chairman and Managing Director of Bank and the President for the Qatari Commercial Facilities Company and the Sport Union for Special Needs Athletes. Vice Chairman of the Board of Directors Sheikh Abdulrahman Al-Thani He is a member of the Advisory Board and Head of the Investment Committee at the Center for Contemporary Arab of the Public Institution for Social Studies at Georgetown University in the Security. Mr. Alhumaidhi is a member United States, and a member of the Arab of the Board of Directors of Kuwait Thought Forum in Amman. Previously, Petroleum Corporation, and a member Sheikh Abdulrahman acted as the Head of the Board of Directors of the Kuwait of the Amiri Court, the Private Secretary Chamber of Commerce and Industry, for His Highness, the Father Emir, Sheikh and is its Honorary Treasurer. He is also Hamad bin Khalifa Al Thani and the a Director of Bank ABC and the CEO of Ambassador for the State of Qatar to the the Petrochemical Industries Company. United States. Mr. Alhumaidhi holds a BSc and Masters Sheikh Abdulrahman holds a BA in in Chemistry from the American International Relations, Masters in University of Beirut. Abdullah Alhumaidhi International Relations, and a Diploma 7

Investcorp Credit Management Investcorp Credit Management on board

n March 2017, Investcorp successfully our global vision of providing our clients completed its acquisition and with a diversified range of alternative integration of the debt management investment opportunities across Ibusiness of 3i (“3iDM”) from 3i Group different geographies. The next chapter plc. The business, now recognized of our corporate narrative starts today, as Investcorp Credit Management with an even more substantial market (“ICM”), adds $11 billion of assets under stronghold and enhanced competitive management, bringing the total to edge”. approximately $21.4 billion. Jeremy Ghose, who will continue to Investcorp Credit Management is Head the Investcorp Credit Management a leading global credit investment business, said, “Investcorp has a long, Jeremy Ghose platform, managing funds which invest impressive history and track record primarily in senior secured corporate of delivering the right products to debt issued by mid and large-cap its strong client base. We are excited corporates in Western Europe and the about our future as Investcorp Credit US. The business has a strong track Management and the opportunities that record of consistent performance and exist for our investors and colleagues as growth, employing approximately part of a well-established, diverse global 50 people in London, New York and manager.” . John Fraser, Head of Investcorp Credit Commenting on the completion, Management US, added, “We are Mohammed Alardhi, Executive Chairman delighted to have now formally joined of Investcorp, said, “The acquisition is a Investcorp and integrated our team in strategic move for Investcorp. Last year to the wider Investcorp business. This is John Fraser we announced our ambitious strategy an important milestone for us all. I have to grow assets under management to full confidence that the combination of $25 billion in the medium term. We are Investcorp’s reputation and resources firmly on track to achieve our goal as we and our experience, expertise and track continue to extend Investcorp’s existing record will allow us together to build product offerings across , on our past success. We look forward real estate, and alternative investment to expanding our platform and product solutions (formerly hedge funds). The offering with such a well-regarded firm. integration of ICM is a natural fit with 8

Corporate Investment Sale of PRO Unlimited: 2.5 times in 2.5 years Approximately $300 million to be distributed to Investcorp and its clients

arlier this month, Investcorp the Company’s software platform and its announced the sale of PRO sales and marketing activities. Unlimited, a leading software- “We acquired PRO Unlimited because Eenabled services company for the we knew the Company had significant staffing and management of skilled growth potential given the strong professionals, to Harvest Partners. secular tailwinds and its leading market Investcorp will re-invest in the company position,” stated Maud Brown, Managing alongside Harvest Partners and continue Director of Corporate Investment in to have a significant minority stake with North America. “We worked closely meaningful influence. with the Company’s committed management team to grow the business, PRO Unlimited is one of the fastest Maud Brown focusing on new enterprise client wins growing providers of software and and key investments in technology, managed services to large enterprises marketing and sales. We continue enabling its clients to more effectively to have conviction in the long-term manage their contingent workforce. market trends and look forward to Under Investcorp’s stewardship for building upon our relationship with PRO only two and half years, PRO Unlimited Unlimited and partnering with Harvest has increased its net revenues by over to capture additional opportunities.” 40% and more importantly, almost doubled its Earnings Before Interest, The transaction is expected to close Tax, Depreciation and Amortization. The in May 2017 subject to customary Company’s rapid growth has been in corporate approvals. part driven by significant investments in 9

Corporate Investment

Investcorp completes acquisition of stake in global advisory firm AlixPartners n February 2017, Investcorp the world become more competitive successfully completed its acquisition through every stage of the business of a stake in AlixPartners, a leading cycle. Investcorp has known AlixPartners Iglobal financial and operational and the value it creates for its clients for consulting firm. Investcorp acquired a very long time and we are pleased to its stake in AlixPartners alongside a have the opportunity to be a part of its consortium of investors that included future. Alongside Jay Alix, our partner Jay Alix, the founder of AlixPartners; investors and the Company’s Managing Caisse de dépôt et placement du Directors, I am confident that we will Québec (CDPQ); and Public Sector be able to help AlixPartners continue Pension Investment Board (PSP expanding around the world and add Dave Tayeh Investments). AlixPartners’ Managing even greater depth to its capabilities.” Directors will continue to hold a Commenting on the deal, Dave Tayeh, significant stake in the Company. Head of Corporate Investment North Founded in 1981, AlixPartners works America at Investcorp, said, “We have with clients to help them restore, already established an excellent grow and create sustainable value, in partnership with Jay Alix, and I expect high-impact situations. Its services us to work closely as the company comprise performance improvement; pursues a range of exciting growth turnaround and restructuring; opportunities.” investigations, disputes and risk; digital Simon Freakley, Chief Executive transformation; and transformative Officer of AlixPartners, said: “We are leadership. AlixPartners is composed of delighted to welcome Investcorp and over 1,600 professionals, spread across our other new strategic investors. Their 27 offices on four continents. commitment will allow us to continue Mohammed Al-Shroogi, Co-CEO at to grow our business and best serve our Investcorp, said, “AlixPartners has a clients. We are now in our 35th year and, solid business model, which is focused with revenues of $1 billion, I believe that on helping blue chip companies around AlixPartners is on a great trajectory.” 10

Corporate Investment

TheArrowhead leading US distributor of mission-critical replacement parts

n January 2017, Investcorp acquired and acquisitive growth opportunities a significant minority stake in available to Arrowhead as it seeks to Arrowhead Engineered Products, deepen its market share, particularly in Ithe leading value-added distributor of the agriculture, industrial and outdoor mission-critical replacement parts in the power equipment segments. We are very US specialty vehicle market. much looking forward to being a part of Arrowhead’s future.” Arrowhead, based in Minnesota, is a global supplier of non-discretionary, Commenting on the deal, Dave Tayeh, mission-critical, rotating electrical Head of Corporate Investment North parts and their components for the America, said, “We look forward to powersports, outdoor power equipment, working alongside this top-notch Steve Miller agricultural, industrial, marine, heavy- management team to enhance and duty and automotive end-markets. It accelerate the growth in new products is one of the sector’s fastest growing and to expand into new markets. We companies and has distribution and have a long-standing track record in sourcing locations in North America, creating value in supply chain services Europe and Asia. Arrowhead employees and distribution companies and we service over 40,000 customers on a daily believe our in-depth knowledge and basis. experience will help Arrowhead increase its footprint. Steve Miller, Principle in the Corporate Investment North America team at CEO of Arrowhead, Jim Wisnoski, Investcorp, said, “Arrowhead is a proven commented that, “Investcorp has market-leader, well known for providing deep experience in the motorized customers around the world with parts industry that is invaluable for mission-critical replacement parts, a Arrowhead’s next phase. We believe their market that is valued at $28 billion in the network, capital and capabilities will US alone. As can be seen by the add-on help us execute on our ambitious growth acquisitions of Stens and J&N Electric, plans.” we believe there are a number of organic 11

Corporate Investment

Investcorp acquires majority stake in European online marketplace Ageras

nvestcorp Technology Partners, which with an outstanding management team, focuses on tech-enabled investments make it an ideal candidate for Investcorp in the European lower middle-market to partner with.” Ias part of the Investcorp Group, have Rico Andersen, Chief Executive Officer, reached an agreement to acquire a Ageras, added, “From the first moment majority stake in Ageras, a fast growing we met Investcorp it was clear that they European online marketplace matching were the right partner for Ageras as we SMEs and micro-businesses with transition to the next level in our growth professional services providers such as trajectory. Investcorp has a fantastic accountants and lawyers. track record of growing founder-owned Despite receiving no external investment companies in the technology space, Gilbert Kamieniecky until now, Ageras grew its revenues and its global presence and extensive by approximately 60% over the last network will support Ageras’ continued financial year and, in 2016, connected international expansion. Executing ~16,600 customers successfully. Ageras this investment from Investcorp is a operates in five markets, Denmark, great vote of confidence in Ageras’ Sweden, Norway, Holland and Germany development to date, and we believe from its Copenhagen headquarters. their ongoing support will open up The Company has delivered consistent multiple opportunities for future growth by reinvesting cash generated growth.” back into the business. Investcorp has established a market Commenting on the investment, Gilbert leading position of investing in lower Kamieniecky, Managing Director of mid-market technology companies with Corporate Investment - Technology a particular focus on founder-owned said, “Ageras’ unique combination of Data, IT Security, Internet / Mobility and customised service and high automation Fintech / Payments businesses, and has positions it perfectly to connect SMEs raised more than $1 billion in funding with accountants and lawyers. Its best- for technology investments. Investcorp in-class levels of customer satisfaction continues to see a strong technology coupled with recurring sales into its deal pipeline in the market with Ageras partner base have allowed it to secure a marking its second investment in the leading market position in Europe. These sector within four months. fundamental business strengths, coupled 12

Corporate Investment

NDT CCS Investcorp’s portfolio company acquires majority stake in Oman’s Hi-Tech Inspection Services

nvestcorp‘s portfolio company Walid Majdalani, Managing Director NDT Corrosion Control Services Co. in the Corporate Investment - MENA (“NDT CCS”) has recently acquired team at Investcorp, said, “This is the Ia majority stake in Hi-Tech Inspection first major investment for Investcorp’s Services LLC (“Hi-Tech”), Oman’s largest portfolio company in Oman and we are provider of industrial non-destructive confident that Hi-Tech will be a natural testing (“NDT”) and inspection services. fit for NDT CCS. Investcorp will lend Hi-Tech’s founders, Al Sulaimi Group its operational and financial expertise Holding, established the company in with the objective of helping the 1996. combined company create new growth opportunities in Oman, Saudi Arabia, Investcorp acquired a majority stake and the rest of the GCC. Walid Majdalani in NDT CCS in July 2015 from the Al Shuwayer Group which founded the Haitham Al Fannah, CEO of Al Sulaimi company in 1975 and retains a minority Group Holding, said, “Over the past 20 stake alongside Investcorp. Under years, we have built Hi-Tech into Oman’s Investcorp’s ownership, NDT CCS has leading NDT and inspection services solidified its market leading position and company. It is the right time to bring expanded its operations both organically on a strategic investor to provide the in its core markets and inorganically as a depth and market position to allow us result of its acquisition of Hi-Tech. to grow across the GCC. NDT CCS and its sponsor Investcorp offer regional growth Hi-Tech offers a complete range of opportunities that meet the ambitions non-destructive testing, post-weld heat and capabilities of Hi-Tech. We at Al treatment and specialized inspection Sulaimi Group Holding look forward to services to clients in Oman engaged working with our new partners over the in the oil and gas, manufacturing and years ahead.” construction sectors. Hi-Tech employs over 600 specialized technicians and has an estimated market share of over 35% in Oman. 13

Corporate Investment

Wrench Completes Baker Acquisition operation to the platform. Investcorp’s Corporate Investment North America portfolio heavyweight, the Wrench Group (“Wrench”) - has successfully completed the acquisition of nvestcorp’s Corporate Investment Baker Brothers Rotovision, Inc., a leading North America portfolio Dallas-based residential HVAC & plumbing heavyweight, the Wrench Group service provider, for approximately $32 I(“Wrench”) - has successfully million. completed the acquisition of Baker Brothers Rotovision, Inc., a leading Baker was identified early in Wrench’s Dallas-based residential HVAC initial 180-day plan as an acquisition & plumbing service provider, for target, given the firm’s strong brand approximately $32 million. reputation and financial performance. Baker was identified early in Wrench’s initial 180-day plan as an acquisition target, given the firm’s strong brand reputation and financial performance. The acquisition will expand Wrench’s coverage in the attractive Dallas market, while adding a high quality

POC Award Winning Innovation nvestcorp’s Corporate Investment Europe portfolio company, POC announced that it has been awarded a Ihost of industry awards for several of its 2017/18 snow season innovations. POC’s latest innovations include, SPIN, a new patent pending helmet technology created to counter the effects of oblique impacts, which awarded the ‘Outside - gear of the show’ award at SIA. Whereas, POC Layer, which is a cut resistant performance base layer for ski racers, has been chosen as an ISPO ‘Gold Winner’. POC which has built a reputation on safety, innovation and design was founded in 2005 in Sweden. Investcorp acquired POC in 2015 as part of the Dainese group for a total consideration of $65 million from outdoor equipment maker Black Diamond, Inc. 14

Corporate Investment

Ambitious Expansion Plans for Corneliani hilst remaining loyal to its forgetting communications. In order to traditional values and Italian send a strong signal, we’ve decided not craftsmanship, Cornelinai, in to have a fashion show proper but to Wwhich Investcorp owns a majority stake, entrust the responsibility of narrating is embarking on an ambitious expansion the new collection and at the same plan, with new franchises in the pipeline, time, Corneliani’s spirit, to short films both domestically and overseas. by cutting-edge European names in creativity: the Vincent&Kristell duo, Elena Since the acquisition in June 2016, Petitti di Roreto, The Jack Stupid creative Investcorp’s Corporate Investment studio and Marta Vismara.” Europe team has paved the way for a long-term future growth for the luxury Roviera closed 2016 with a turnover of Italian menswear specialist, by injecting €110 million and is optimistic about fresh capital and bringing new executive 2017. The first milestone of the brand’s talent on board including the new CEO, new vision is to debut at the Milan Paolo Roviera. Fashion Week with an innovative twist of incorporating three short feature films Commenting on the company’s from the ‘Corneliani to You’ series that performance, Roviera said, “Our first accompany the catwalk. testing ground could not but be the Milan Men’s Fashion Week, though since I got on board, I have endeavored to work on many fronts, from corporate organization to distribution, from staff training to the creative aspects, not

Orka Resellers Event in Istanbul

Australia, South Africa and China. The 10-day Resellers’ Meeting enabled Orka Group not only to present Damat, D’S and Tween collections and brand plans set for this year, but also to rka Group, an Investcorp announce its 50 new store openings Corporate Investment-MENA target for 2017 to new countries portfolio company, held its including Sweden and Switzerland. O5th Annual International Resellers’ Event in Istanbul earlier this year, with a delegation of 180 people from 80 countries, including Italy, Spain, Russia, 15

Corporate Investment

Investcorp Sells Stake in Optiv Security to KKR

of North America’s fastest-growing private companies with a 97 percent three-year growth rate. Timothy Mattar, Head of Placement & Relationship Management at Investcorp, stated, “Our track record in identifying companies and industries with significant growth potential has allowed us to expand businesses and enhance their value. The recent sale of Optiv to KKR serves to further emphasize our continued investment momentum in the United States. “Investcorp’s acquisition of FishNet Security exemplifies the type of companies and industries where we see significant n December 2016, Investcorp opportunities in which to invest,” said completed the sale of Optiv, a Timothy Mattar, Head of Placement & market-leading provider of end-to- Relationship Management at Investcorp. Iend cyber security solutions, to KKR. “Since Investcorp’s initial acquisition, Optiv is being acquired from a group the business has increased revenue of private investors, including a private and EBITDA nearly three times through equity fund managed by Blackstone, organic growth, the merger that created Investcorp and Sverica. Optiv and strategic acquisitions, which Investcorp originally invested in Optiv broadened the scope and scale of the through the acquisition of FishNet business. We believe the Company will Security in November 2012. During continue to realize extraordinary growth Timothy Mattar Investcorp’s holding period, FishNet and are proud to have been part of its Security acquired one company, development trajectory.” merged with Accuvant to create Optiv, Over the years, Investcorp has and subsequently completed three successfully invested in several additional acquisitions. As part of the security related companies. Previous Optiv merger, Investcorp retained a investments include CSIdentity, the meaningful minority equity interest in technology leader in providing identity the combined company. Since closing, theft and fraud protection services; and the newly combined entity has become Sophos, a world leader in providing one of the largest pure-play cyber enterprise-wide anti-virus protection security providers in the world, over to corporations, governments and the past three years having served academic institutions. In addition to more than 7,500 clients in 76 countries, Optiv, the current portfolio includes including 71 of the Fortune 100 and 604 Securelink, a leading European cyber of the Fortune 1000. Today, Optiv serves security infrastructure and managed as the number one information security services provider; and OpSec Security partner for many of the established and Group, the global leader in anti- emerging security software vendors counterfeiting technologies, as well as and hardware manufacturers. Optiv was solutions and services for physical and named to the 2016 Inc. 5000 list as one online brand protection. 16

Real Estate

Atlantic Point, New York $400 Million Investment in New York, California, and Nevada nvestcorp continued to strengthen its team at Investcorp, said. He added: “We portfolio in the U.S. real estate market have a long history of investments in with three new multifamily housing the U.S., and our $1.2 billion investment Iproperties in New York, California, and in residential properties in the past 18 Nevada, for a total purchase price of months demonstrates our belief that the nearly $400 million. U.S. real estate market provides high- quality investments that will generate “As we look to the next phase of growth steady returns in the years to come.” for Investcorp, we have great confidence that the U.S. is a place where our All three properties are located in investments will continue to serve our markets which benefit from robust fundamentals in the multifamily space. Herbert Myers global client base well, as we believe the U.S. economy is poised for significant Atlantic Point is a 795 unit, Class A, growth.” Herbert Myers, Managing 115 acre multifamily housing property Director in the Real Estate Investment located in Bellport, New York, which is 17

Real Estate

Brings Total Residential Investments to More Than $1.2 Billion in the Last 18 Months located within the Nassau County- wide vacancy is projected to average Suffolk County Metro Division. 2.4% over the next five years. Suffolk County is one of the tightest Villas at Green Valley is a 609 unit, multifamily housing markets in the Class B, garden-style multifamily U.S. with a vacancy rate of 2.9%. Given housing property located in the high cost of land and strict zoning Henderson, Nevada, in the Las Vegas regulations which makes it difficult to MSA. The metro Las Vegas economy build, the area has seen minimal new has rebounded strongly since the development since the 1990s. This has 2008/2009 downturn. As a result of led to a favorable supply / demand factors like no state income tax, a imbalance in the overall market. low cost of living, and a favorable The region is home to Brookhaven climate, population growth has National Lab, Stony Brook University, exceeded 50% since 2000. Further, Brookhaven Memorial Hospital and over the next five years, the metro Stony Brook University Hospital. area is projected to lead the nation The Highlands is a 556 unit, Class B, in population, employment and real garden-style multifamily housing unit Gross Metropolitan Product (GMP) in Grand Terrace, California, in the growth, all of which are expected to be Riverside-San Bernardino MSA. In this solid drivers for multifamily demand. area, the multifamily market leads the nation in rent growth, having logged 5.1% in rent growth in 2016. Market- Highlands Apartment Homes, California

Villas at Green Valley, Nevada 18

Alternative Investment Solutions Nut Tree Reaches $400 Million Asset Milestone

ut Tree Capital Management, a refinancings, liquidations and company New York based credit-focused sales. investment manager, celebrated Nut Tree launched in February 2016 with Nits first anniversary in February. The firm approximately $100 million of assets has over $400 million in assets under under management. Investcorp has been management (“AUM”) as of March 1st. involved with Nut Tree from day one as a CIO and founder of Nut Tree, Jed strategic partner. Nussbaum, has 17 years of investment “We are focused on bringing very experience in credit markets. He was successful portfolio managers onto our previously a Partner at multi-billion Hedge Funds Partnerships platform,” dollar credit Redwood said Lionel Erdely, Head and Chief Capital Management. He is joined by Lionel Erdely Investment Officer of Alternative team members with investing and Investment Solutions at Investcorp. operations experience at industry “Nut Tree Capital has been an excellent leading firms including KKR, GLG, addition to our platform, and we are Goldman Sachs, and Scout Capital. excited about the firm’s future”. Nut Tree, which pursues a fundamental Mr. Nussbaum added, “Investcorp has credit strategy by investing in both been a terrific partner and has made a stressed and distressed investments significant contribution to our success. primarily in North America, continues to The ability to be at $400mm AUM in identify sources of opportunity. Nut Tree a year’s time has been a strategic looks for companies that face earnings advantage for Nut Tree”. inflection points and offer complexity discounts and misunderstood risks and optionality. Nut Tree has participated Jed Nussbaum in arbitrage while also pursuing hard catalyst events including

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Events and Conferences

Alardhi delivers Keynote Address at the ECSSR conference in Abu Dhabi

n March 2017, Mohammed Alardhi, momentum and Regional economic Alardhi added, “Ambitious plans and Executive Chairman of Investcorp, security” initiatives such as Saudi Arabia’s gave a keynote address at the vision 2030, UAE’s vision 2021, Oman’s Mohammed Alardhi underlined the IEmirates Center for Strategic Studies National Program for Economic importance of the recent economic and Research (ECSSR) 22nd annual Diversification ‘Tanfeedh’, and Kuwait’s and fiscal reforms in the GCC region, conference in Abu Dhabi. The conference economic and fiscal reform programme and emphasised the need for further was held under the title ‘The Future of go in that direction, but still require collaboration in order to adapt to the the Region: Oil Price Challenges’. proactive engagement, outreach and ever-changing environment in the global communication and greater involvement Addressing an audience of distinguished marketplace, saying, “Streamlining of local stakeholders in the policy business leaders, professors, the public sector, adopting a more process.” policymakers and thinkers, Mohammed restrained and responsible fiscal stance Alardhi discussed the regional and is essential. It should go hand in hand The conference took place on 21 and 22 international economic developments with labour market and education March, and included a range of panel and their implications on the business sector reforms in order to secure more discussions, exploring the developments landscape in the Arab region and the sustainable outcomes.Although the in the field of energy and the future of world at large. He said, “The Arab region adjustment differs in pace and intensity domestic stability in Arab states. today is in the midst of fundamental depending on domestic conditions, geopolitical and geo-economic shifts countries have started transforming defining the strategic environment in their economies in phases away from which states, businesses and individuals oil based dependent activities. In the will operate in pursuit of their interests. UAE in particular, the IMF (August 2016) This new landscape has brought to reports that crude and natural gas the fore, at least three key challenges contribution to the overall 2015 GDP policy makers will face as they work was 32% suggesting 68% to be non-oil on mitigating the impact of lower oil revenues. This is a huge achievement by prices: Sustainability, Reform pace and the government of the UAE.” 20

Events and Conferences UAE Ambassador to the US hosts Alardhi & El-Erian as Guests of Honour

arlier this year, Ambassador of the and finance and media experts, the Both Co-CEO’s Mohammed Alshroogi United Arab Emirates to the U.S. event featured a keynote speech from and Rishi Kapoor attended the event, Yousef Al Otaiba hosted a dinner Alardhi, where he gave an overview of alongside the heads of Real Estate Eevent in Washington D.C. in honor Investcorp’s history in the U.S. market Jon Dracos, AIS Lionel Erdely, CIE of Investcorp’s Executive Chairman, and the latest initiatives across its Hazem Ben-Gacem and Corporate Mohammed Alardhi and Chief Economic different lines of business. The speech Communications Firas El-Amine. Advisor of Allianz, Dr. Mohammed El-Erian. was followed by a Q&A discussion moderated by David Ignatius. Attended by senior political figures

From left to right: Ambassador of the United Arab Emirates to the U.S. Yousef Al Otaiba, Investcorp’s Executive Chairman, Mohammed Alardhi and Chief Economic Advisor of Allianz, Dr. Mohammed El-Erian. 21

Events and Conferences Digital Marketing Symposium in New York

nvestcorp hosted its first Digital Marketing Symposium for its Corporate Investment - North America I(CINA) portfolio companies at the offices of Gibson, Dunn & Crutcher in . This one-day symposium was held on March 1st and brought together marketing executives from the Firm’s U.S. portfolio companies with industry leaders from leading consulting firms. This symposium is one of a series of events that the CINA group has been hosting as part of its broader post- acquisition initiatives. Conferences have also been held for the portfolio company CFOs and CIO/CTOs. The goal of these conferences is for the portfolio company executives to develop relationships with each other, share best practices and leverage the power of practices from each other but to tap the being part of the Investcorp network. deep resources Investcorp offers in an interactive manner.” The event provided a platform for business leaders to foster knowledge Anand Radhakrishnan, Managing sharing, develop new skills and discuss Director at Investcorp said, “Bringing critical issues facing their respective together leaders from around the nation companies in increasingly complex to discuss the changing landscape industries, including industrials, across many industries gave us the professional and business services, opportunity to delve into challenges that consumer goods and retail. The program our portfolio companies are currently focused on the understanding the facing and learn critical methods by customer journey, customer lifecycle which to solve them such as the growing Anand Radhakrishnan marketing and customer acquisition, emergence of e-commerce. Investcorp digital transformation, and data & understood the respective needs and marketing analytics. brought together an exceptional group of people to support the continued efforts Amit Gaind, Principal at Investcorp, who to improve our customer experience. led the development of the program, stated, “We have always been committed Representatives from AlixPartners, to strengthening our portfolio companies Arrowhead Engineered Products, Nobel and developing talent by leveraging our Learning Communications, Paper Source, powerful global network. As we continue PRO Unlimited, Randall Reilly, Sur la to work closely with our leaders to Table, TelePacific, and The Wrench Group enhance their businesses, we saw that attended. There were also professionals creating a compelling and consistent from FitForCommerce, Boston Consulting Amit Gaind customer experience was a topic that Group and Bain Capital that attended, leaders were looking to further develop participated and presented throughout and evolve. Bringing our network the day. together to create this forum allowed our companies to not only learn best 22

Events and Conferences

Two Female Students Receive Investcorp Student Innovation Prize received strong response from a large is testament to the great potential and number of university students across talent of our youth.” . Composed of two female In addition to the Prize, Investcorp runs students from Bahrain Polytechnic, the a number of educational initiatives winning team was selected following a with well-respected partners, such Injaz rigorous process where five teams were Bahrain, to support the professional shortlisted to present their business development of the youth of Bahrain. ideas in front of a judging panel from Investcorp also hosts an annual Investcorp. Leadership Programme at some of Addressing the audience, Mohammed the world’s most prestigious business Al-Shroogi, Co-CEO of Investcorp, schools. Recent programmes took place highlighted the importance of education at Cambridge and Oxford. and youth in the development of every society, and said: “Investcorp has always recognised the importance of supporting nvestcorp, was pleased to announce the professional development of the the winning team of its $25,000 Bahraini youth. It is our duty to provide Student Innovation Prize during an them with the guidance, motivation and Iofficial ceremony held at the University encouragement they need to become the of Bahrain earlier in February. The event business leaders of tomorrow.” was attended by the university President, Professor Hamza, alongside “With this competition, we wanted to Investcorp’s Co-CEO, Mohammed Al- stimulate innovative thinking amongst Shroogi, as well as members of the the younger generation, and we were judging panel and participating teams. delighted with the quality of response we had from across the Kingdom. This Launched in June 2016, the competition 23

New Joiners

Investcorp further grows its team with new strategic hires nvestcorp continues to attract AlMarzooqi, as a Principal with the Abu new talent to its growing team Dhabi team. of professionals, with seven new Prior to joining Investcorp, Aya Taha Istrategic hires joining the Firm’s offices was with the Head of Business Banking in the Gulf and New York over the first at HSBC Bank in Dubai, while Ahmed few months of 2017. AlZayani was part of the Investors In New York, we were pleased to Relationship Management team at welcome two new Vice Presidents to Arcapita Investment Management. Adel our Alternative Investment Solutions AlMarzooqi joined Investcorp’s team in and Legal and Compliance teams. Abu Dhabi from the National Bank of Matthew McCann joined Investcorp’s Abu Dhabi where he was the Executive Alternative Investment Solutions team Director of Private Banking. Aya Taha from SkyBridge Capital, where he was a Director of Institutional Sales. Sami Qasimi joined the Legal and Compliance team from Barclay’s Capital, where he was an AVP in trade surveillance. The Technology team also welcomed a new member, with the appointment of Jason Wu as an Associate Vice President, joining from Lenox Advisors. In Placement and Relationship Management (PRM), we were pleased to welcome Aya Taha and Ahmed AlZayani as Vice Presidents in the Dubai and offices, respectively, and Adel Matthew McCann Sami Qasimi

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