Investcorp signs structured secondaries transaction with HarbourVest on USD1bn MENA private equity portfolio

Investcorp Group (Investcorp) has signed a structured secondary transaction with HarbourVest to provide liquidity for Investcorp’s existing USD866 million MENA private equity investment portfolio with up to an additional USD70 million of new capital for follow-ons and up to a further USD60 million for new investments.

This transaction is subject to the receipt of requisite investor elections, and relevant regulatory approvals and other customary closing conditions.
 
Investcorp will maintain an interest in the Portfolio and Investcorp’s MENA Private Equity team will continue to manage the Portfolio.
 
Hazem Ben-Gacem, Investcorp’s Co-Chief Executive Officer, says: “This milestone deal is a testament to the attractiveness of Investcorp’s MENA portfolio to global institutional investors, our ability to leverage our strong relationship with an existing partner, HarbourVest, and to our innovative approach to creating value for all stakeholder groups. Our experience through secondary market transactions and creation of a buyout fund in Europe gives us credibility and confidence to be the pioneers of this investment strategy in the region.”
 
David Atterbury, Managing Director, HarbourVest Partners, says: “We are pleased to continue the strong partnership we have developed with Investcorp. This complex secondary transaction highlights our ability to work with partners to create innovative liquidity solutions that can benefit multiple parties.”
 
In January 2019, Investcorp signed two similar deals for its European Private Equity assets. One was the sale of two portfolio companies in Investcorp Technology Partners Fund to a continuation vehicle supported by HarbourVest. The second was a secondary private equity transaction that included the sale of some of its European private equity portfolio to Coller Capital and the creation of a new buyout fund.