May 7, 2020 / 12:18 PM / a month ago

Investcorp reaches first close for $750 mln fund to invest in asset managers

NEW YORK, May 7 (Reuters) - Investcorp Holdings has reached the first fundraising close on its debut $750 million fund to buy stakes in alternative asset managers such as private equity and real estate investment firms, according to an investor letter seen by Reuters on Thursday.

Investcorp raised $160 million from institutional investors in April for Investcorp Strategic Capital Partners, the letter said. Investcorp declined to comment.

The market for minority stakes in alternative asset managers, also known as general partners (GPs), has swelled in the last decade, as investors sought to tap into the steady flow of management and performance fees generated by investment managers. Fundraising for GP-stake investments reached over $20 billion last year, according to data provider Pitchbook.

Investcorp's fundraising indicates it expects to see such opportunities even amid the coronavirus-induced economic downturn.

Investcorp's GP-stakes fund, which was launched last year, is currently in advanced discussions to make two investments, the letter said, without providing details.

Founded in 1982, Investcorp has $31 billion in assets under management spread across private equity, credit, infrastructure, and real estate. (Reporting by Chibuike Oguh in New York; Editing by Bernadette Baum)

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