Investcorp Capital bottom line dips in FY 2025: ADX-listed private equity firm Investcorp Capital posted a net income of USD 81 mn in FY 2025, down 22.9% y-o-y, according to its financials (pdf). The decline was attributed to higher financing costs tied to borrowings for new investments, the company said in a separate earnings release (pdf).

Revenues: Gross operating income fell 6.1% y-o-y to USD 124 mn — as a 15.8% y-o-y dip in revenue from capital deployment (to USD 64 mn) offset a 10.2% rise in capital financing services (to USD 54 mn) amid stronger origination and syndication activity. Operating expenses increased 25% to USD 10 mn, leaving a cost-to-income ratio of 8%.

Total assets rose 9% y-o-y to USD 1.9 bn, supported by USD 1.3 bn in acquisitions and USD 1.1 bn in realizations.

REMEMBER- Investcorp Capital has been exiting mature assets to recycle capital into new transactions. In May, the firm announced a USD 550 mn sale of 12 US multifamily properties — after carrying out a USD 360 mn exit from its US industrial portfolio in April and a full divestment from Indian budget fashion chain Citykart, which delivered a 4x return. More exits are expected from its Indian portfolio.

On the buy side, it expanded into Italy with the takeover of payments firm Epipoli and also invested in PKF O’Connor Davies, Miebach Consulting, Student Housing V, Industrial Fund II, and a USD 257 mn structured product.

Dividends: The board is recommending USD 112 mn in dividends for FY 2025, half of which (USD 56.3 mn) was paid in March. The payout reflects an annualized dividend yield of around 11% as of 30 June.

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