04/08/2026 01:40 AST
Abu Dhabi-based alternative investment firm Investcorp Capital (ICAP) has reported a sharp decline in annual profit for the fiscal year ended June 30, 2026, which fell to $44 million compared to $81 million last year, while its gross operating income plunged to $94 million from $124 million in 2025.
Announcing the results, ICAP said the earnings were affected by the timing of realisations across its global private markets portfolio, the resulting impact on asset valuations, and higher financing costs following a precautionary drawdown under its revolving credit facility to maintain additional liquidity.
Despite the weaker earnings, Investcorp Capital generated $1.3 billion in cash distributions from exits and syndications during the year, exceeding the $1.1 billion it deployed across investments.
The board recommended a final dividend of AED0.092 ($0.025) per share, subject to shareholder approval at the annual general meeting on September 21. Together with the interim dividend paid in March, the total payout meets the company's fiscal 2026 dividend target of 8% of opening net asset value (NAV).
The company also said a new dividend policy, announced in April, will take effect from fiscal 2027, targeting payouts of 65%-75% of annual net profit, to be distributed semi-annually.
Investcorp Capital said it would change its financial reporting year-end to December 31 from June 30, with the transition period running from July 1 to December 31, 2026. Future financial reporting will be based on the calendar year.
FY26 performance was underpinned by strong cash-generation from the core portfolio, with $1.3 billion of distributions from exits and syndication, against $1.1 billion deployed during the year, said its top official.
"Our strategy remains unchanged: we continue to take a patient approach to capital allocation while strengthening our platform through targeted strategic initiatives, including the continued development of our AI framework and its growing application across Investcorp Capital and our portfolio companies," remarked its CEO Sana Khater.
"Looking ahead, our priorities for FY27 are portfolio optimisation and a focus on realisations, positioning us to pursue attractive opportunities and deliver long-term value for our shareholders," he added.
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