Appointments news | Investcorp

Published: May 4, 2017

Ghose sets sight on growth for new Investcorp debt arm

Bahrain’s Investcorp more than doubled its assets under management to US$23bn when it bought 3i’s global debt business, and the investment house is now looking to grow its new leverage finance portfolio even further.

EMEA Finance spoke to Jeremy Ghose, who headed up the business at 3i and moved across to Investcorp as head of the company’s debt business, called Investcorp Credit Management, as part of the £222mn acquisition that was finalised in March.

“Our success in debt investments matches the alternatives investment success Investcorp has seen across its business both in Europe and the US – positioning the two very well for future success together,” said Ghose. “We are very excited about our future as Investment Credit Management and for the opportunities that exist for our investors and colleagues as part of a well-established, diverse global alternative investment manager.”

3i changed its focus last year to propriety investment management – which means using internal funds rather than raising money from external investors. This left the company’s debt management arm out in the cold, as Ghose’s business was responsible for around US$11.5bn from 400 investors, 95% of which were external. 

Rather than hold a public auction to sell the credit business, which could have sent investors dashing for the exits, 3i entered highly secretive private negotiations. The business was sold to 3i from Mizuho for £18.3mn in the same way in 2010.

According to Investcorp, this transaction is the largest ever strategic acquisition made by the firm, and it will be fully funded through its existing balance sheet. Rishi Kapoor, Co-CEO of Investcorp said, “We see this business as one of the central pillars of Investcorp’s product platform going forward and are absolutely committed to continuing to grow the business on multiple fronts including fundraising, product development and capital support.” 

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