The Investcorp Newsletter Investcorp acquires POC Corporate Investments Investcorp acquires POC and NDTCCS Real Estate The acquisition of Multifamily Residential Portfolio Investcorp and BDI The third Chairman Summit New Joiners New CFO & Head of Corporate Investment in North America Guest Feature Dr. Hani Khalil Findakly The Review | November 2015 2 Welcome and retaining star talent. revolutionary manufacturer of skiing and cycling helmets, gear and accessories, Over the course of our fiscal year 2015, to our portfolio. POC is a deal I am we deployed $1 billion in Corporate particularly excited about and one that Investment and Real Estate deals across continues our long history of involvement all our key markets in the Middle East with consumer sporting businesses, which and North Africa, Europe and the started with Riva Boats in 1984, followed United States. Meanwhile, the Firm by Helly Hansen, Dainese, AGV and now generating $1.5 billion in total proceeds POC. from successful realizations in 2015 demonstrated our ability to maximize While we have no plans to slow down value through exits and complemented and are actively monitoring a number our buy-side activity. Taking a step back of situations across a range our markets, and looking at the six-year period to we will always analyse every detail of a FY15, total realization proceeds totalled deal in order to ensure maximum value $7.5 billion with total capital deployed creation. in new and add-on investments over this Away from investment activity, we have period hitting $4.3 billion. further strengthened the backbone of When you consider the global economic Investcorp by moving one step closer backdrop we have been operating in over to opening our office in Doha, having nvestcorp has begun its new fiscal the past few years, Investcorp’s ability received approval from the regulator. year the same way we ended 2015, to deliver consistently strong returns is This builds on our existing presence with us remaining focused on I a testament to our commitment to our in Bahrain, Riyadh and Abu Dhabi, executing deals where we see significant investors and shareholders. and allows us to provide an even better value creation potential for our investors service to our investors and shareholders and shareholders. While Investcorp is Since the start of FY16, we have in Qatar. going through a period of transition in acquired a portfolio of eight residential order to better position the Firm for the properties in the metropolitan areas of These are exciting times for Investcorp future, some things will never change. Las Vegas, Denver, Chicago, Atlanta and and while we are sure to see some Investcorp has its foundations in the Dallas for approximately $400 million. changes, the Firm’s unwavering complete alignment of our interests with All eight properties are well-occupied commitment and dedication to its clients that of our shareholders and investors, a rental properties situated in major and will forever remain. commitment to always delivering the very growing U.S. markets, offering solid rent highest possible level of client service via growth potential. On the Corporate Mohammed Al-Shroogi a high-touch model and always attracting Investment side, we have added POC, a Co-Chief Executive Officer Contents Corporate Investments Real Estate Farewell Page 4-8 Page 10-11 Page 14 Summary of Investcorp’s The acquisition of Multifamily A farewell to Mike Merritt acquisitions Residential Portfolio New Joiners Oxford University’s Middle Page 15 East Centre Guest Feature Page 12-13 Page 16-18 Dr. Hani Khalil Findakly Board Directors Institute Global Macro Outlook Page 9 Page 19 The third Chairman Summit by Rebecca Hellerstein The Review | November 2015 3 Letter from Mohammed Al Ardhi The way forward s I began to write this letter, it the medium term, helping our clients exciting investment opportunities in dawned upon me just how fast to grow their wealth in a disciplined international markets. my first few months as Executive way whilst effectively managing their A • We will strive to innovate our product Chairman of Investcorp have passed and risk. set to enable our investors to access I can honestly say that I have thoroughly • To always maintain and build very alternative investment opportunities enjoyed every moment. close relationships with our investors allowing them to create diversified Without the foresight of Nemir Kirdar and shareholders. We will always portfolios across multiple markets more than three decades ago to create a provide them with the very highest delivering attractive returns. Firm that would bridge the Gulf and the possible level of service. I am truly excited about the road West, Investcorp would not be where it is • To keep on carrying out the most ahead for Investcorp. We have a today. It is with the deepest respect that thorough due diligence and delivering strong platform, an incredibly talented I thank Nemir for leading this company the best possible return on investment team and a clear vision - but there is since 1982, and we owe a great deal for our investors and shareholders. no question about the level of hard to his years of dedicated service to the work required. I can assure you, my Firm. • We will continue to invest in our commitment to this Firm is unwavering people and attract international Investcorp is an institution that has and I am confident we can achieve our star talent, growing our headcount ambitions. It wants to grow and add goals. capability across our business lines more services on offer for its investors. around the world. All without losing its focus on client Mohammed Al Ardhi service. • We will seek to leverage and maximise Executive Chairman the huge depth of skills, relationships, We have set ambitious goals for the Firm resources and market knowledge that and have developed a clear strategy to already exist around the Firm and help us achieve them: that give us edge over our competitors • We want to grow our Assets under to reinforce our role as the region’s Management by more than 100% over bridge between the Gulf and The Review | November 2015 4 Corporate Investments Acquisition of POC Investcorp adds revolutionary specialist gear and protection maker POC to its portfolio The Review | November 2015 5 Corporate Investments n 8 October 2015, POC, a growing road bike market. revolutionary manufacturer This acquisition came almost a year of skiing and cycling helmets, O after Investcorp acquired the specialist gear and accessories, was added to the gear and protection maker Dainese, the Investcorp portfolio. POC was acquired most recognized and respected brand for a total consideration of $65 million for safety and quality in motorcycle and from outdoor equipment maker Black other dynamic sports markets. There are Diamond, Inc. synergies between the two businesses that Investcorp has continued its long history will be explored in the future. of involvement with consumer sporting Mohammed Al-Shroogi, Investcorp’s businesses in Europe, both apparel and Co-CEO, said: “POC is one of the gear, with Riva Boats, its first European fastest growing, dynamic and innovative investment in 1984, followed by Helly companies in the sports gear and Hansen, Dainese, AGV and most protection sectors. Its cross generational recently, POC. reach, intrinsic focus on technical Established in 2004 and headquartered innovation and commitment to safety, in Sweden, POC’s quest is to provide make it the perfect fit for our portfolio. athletes and consumers with the highest Leveraging our sector expertise, standard of personal protection. POC’s experience of working with high quality line of products includes helmets, body brands and industry connections, we armour, goggles, eyewear, gloves and believe Investcorp is well placed to other gear, which are currently sold further support POC’s already impressive across 27 countries worldwide. Through growth trajectory.” technical collaboration with partners Stefan Ytterborn, POC’s founder, said, such as Volvo and Ericsson, POC is “We are delighted to be partnering pioneering innovative safety concepts. with Investcorp in the next stage of The company also collaborates with our development. I am confident that leading sportsmen and women as it with their support we will continue strives to be at the forefront of technical to grow sales, increase penetration advancements including the American into new markets and drive forward World Cup alpine ski-racer and Olympic innovation, while not deviating from gold medallist, Julia Mancuso, who our ultimate mission of doing the best collaborated with POC to develop a we can to possibly save lives and reduce signature collection. Collaborations consequences of accidents for gravity with leading road bike teams, such as sports athletes and cyclists.” Team Cannondale-Garmin and Team Stolting, ensure POC is at the vanguard of developing products famed for safety, comfort and aerodynamics for the rapidly The Review | November 2015 6 Corporate Investments NDT Corrosion Control Services joins Investcorp’s Saudi portfolio n July, Investcorp completed the in Kuwait and Qatar, provides non- Saudi Arabia’s acquisition of a majority stake in destructive testing (“NDT”) services for largest industrial I NDT Corrosion Control Services a range of industrial sectors including oil Co, the largest testing services company and gas, petrochemicals, mining, nuclear testing services for the industrial sector in Saudi Arabia. and utilities. NDT involves the evaluation Investcorp acquired the