Investcorp mulls major India ramp up; eyes $5bn investment
CONSTRUCTION NEWS
Investcorp, a leading global alternative investment firm with headquarters in Bahrain, is planning a major ramp up of its investments in India, which it aims to take it to $5 billion over the next five years, up from the current $600 million, reported Bloomberg, citing its top official.
This is around 1.5% of the $42.7 billion in assets managed by the group, said its Executive Chairman Mohammed Alardhi, as the alternative asset manager joins global firms eyeing opportunities in the world’s second most-populous country.
The investor adds to firms including Ontario Teachers’ Pension Plan Board and Apollo Global Management Inc. that are seeking to extend footholds in India.
"Investcorp’s plans for the country include a new credit strategy, stronger emphasis on infrastructure deals and finding a target for its India-focused blank-check company, Investcorp India Acquisition Corp, which raised $259 million in a US initial public offering in May," Alardhi told Bloomberg News in an interview in Mumbai.
Currently, the Bahrain-based group is raising another India-focused fund, targeting $500 million, which is more than double its predecessor which wrapped up with $142 million in 2019, according to people familiar with the fundraising efforts.
Given its India ambitions, Investcorp’s latest fund could be even larger than that, they added, asking not to be identified discussing confidential information.
A major player in the global alternative investments sector, Investcorp, which has among its shareholders Abu Dhabi sovereign fund Mubadala Investment Company, began its India operations in 2019.
The asset manager has been expanding holdings from the US to Asia as it seeks to reach assets of about $100 billion.
In a major move, Investcorp today (November 7) acquired a majority stake in Sunrise Produce, a leading specialty distributor of fresh produce and gourmet products in the US.
Founded in 1991, and headquartered in Fullerton, California, Sunrise is well-positioned as a critical link between suppliers and customers, sourcing a wide range of the freshest quality produce and gourmet products from over 400 suppliers and distributing to 2,000 customers across a variety of sectors, such as food services, education, healthcare and retail.
Following this transaction, Investcorp will partner with Sunrise to further accelerate the Company’s growth potential both organically and inorganically through add-on acquisitions.
Sunrise is led by President and CEO David Sapia, an industry veteran with over 35 years of food distribution industry experience.
An industry veteran, Sapia joined Sunrise in 1998 and led significant expansion and revenue growth across various sectors with both new and existing customers. He remains a significant shareholder in the company.
On the strategic deal, Mohammed Al Sada, Head of Bahrain and Kuwait for Investcorp’s Private Wealth, said: "This acquisition continues our key focus on backing and investing in leading businesses with strong fundamentals. Investcorp is well placed to support Sunrise Produce’s expansion plans in the United States through organic growth and targeted acquisitions within what is still a highly fragmented market."
Ali Alrahma, Private Equity Specialist for Investcorp’s Private Wealth, said: "Fresh produce distribution in the US is a highly fragmented, $70 billion market that has consistently shown resilience throughout economic cycles."
"We look forward to our partnership and to helping the US group accelerate its growth through both geographic expansion and accretive add-on acquisitions," he added.
Investcorp has a long history of investing in, creating and realizing value from value-added specialty distributors across various end-markets, with notable recent portfolio investments including Fortune International, S&S Truck Parts, KSI Auto Parts, Arrowhead Engineered Products and Berlin Packaging.
