Investcorp and 3i in $271m transaction

Investcorp, a major provider and manager of alternative investment products, states that it has agreed to acquire the debt management business of 3i (3iDM) from the UK-based 3i Group PLC (3i). 
The proposed transaction, for a total consideration of £222 million (approximately $271 million), significantly enhances Investcorp’s global franchise as a multi-asset class alternative investment manager by adding $12 billion of assets under management, bringing the total to approximately $23 billion. 
3iDM is a major global credit investment company managing funds, which invest primarily in senior secured corporate debt issued by mid- and large-cap corporates in Western Europe and the United States. 
The existing management team of 3iDM will remain intact, with Jeremy Ghose continuing as CEO of the overall business and John Fraser continuing to oversee the US operations.
Investcorp’s Executive Chairman Mohammed Al-Ardhi said: “This is a milestone deal, which will bring together two complementary businesses and broadens product diversity for existing clients of both Investcorp and 3iDM while deepening the geographical reach of the enlarged business.” 
Investcorp’s Co-CEO Rishi Kapoor stated: “This is an exciting moment for us; we see this as a value-added transaction for all sides. Under 3i’s ownership, the 3iDM team has created a compelling alternative credit investment business, which has seen assets under management more than double in the past five years.” 
Simon Borrows, chief executive of 3i, said, “The 3iDM business has had a strong run under 3i’s umbrella and Investcorp is a great home for the business going forward given its strong reputation as a global diversified alternative investment manager with a deep and loyal investor franchise. The combination provides 3iDM with access to new and incremental sources of capital through Investcorp’s client base in the Gulf and the United States.” 
The transaction is stated to be the largest ever strategic acquisition made by Investcorp.

Source: Arab News