Investcorp Says Abu Dhabi’s Mubadala to Acquire 20 Percent Stake

ABU DHABI, United Arab Emirates — Abu Dhabi sovereign investment fund Mubadala Development Co. will acquire a 20 percent stake in alternative investment firm Investcorp Bank BSC, which has backed companies including Tiffany & Co. and Gucci Ltd. under founder Nemir Kirdar.

Mubadala will secure a 9.99 percent stake immediately and a further 10.01 percent after regulatory approvals, Investcorp said today in an e-mailed statement. The deal will strengthen Investcorp’s institutional shareholder base, the bank said.

The Bahrain-based money manager, the Gulf’s largest private investor in US real estate, is charting a new growth plan under executive chairman, Mohammed Al Ardhi, after a generational shift in the company’s management last year. Mohammed Al-Shroogi and Rishi Kapoor were appointed co-chief executive officers in April 2015 after the retirement of Abdul-Rahman Salim Al-Ateeqi, who had been chairman since Investcorp was founded in 1982. Kirdar became chairman that same year.

“From an investment perspective, the stable and long-term value-creation mission of Investcorp makes it a logical addition to Mubadala’s diverse financial investment portfolio,” Khaldoon al Mubarak, chief executive officer of Mubadala, said in the statement.

Abu Dhabi announced a plan last month to merge Mubadala with International Petroleum Investment Co., known as IPIC. The combination follows the decision to merge Abu Dhabi’s two largest banks, National Bank of Abu Dhabi PJSC and First Gulf Bank PJSC, to create a lender with assets of $175 billion.

By Matthew Martin; editors: Dale Crofts, Bruce Stanley and Andrew Blackman.