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Investcorp to double AUM with 3i Debt Management acquisition

Rishi Kapoor
Rishi Kapoor

Investcorp agreed to acquire 3i Debt Management from 3i Group for £222 million ($270.5 million).

The deal, which was announced Tuesday and is expected to close in the first half of next year, will more than double Investcorp's assets to $23 billion from about $11 billion, said Firas El Amine, an Investcorp spokesman.

3iDM manages $12 billion primarily in senior secured corporate debt issued by mid- and large-cap companies in the U.S. and Western Europe. The firm will be renamed Investcorp Credit Management after the acquisition. Its 50 employees will move to Investcorp offices in New York and London and will remain in the current Singaport office, Mr. El Amine said.

Investcorp said in a news release that the 3iDM acquisition is part of its plan to increase assets under management to $25 billion and expand the range of its alternative investment strategies.

“This is an exciting moment for us — we see this as a value-added transaction for all sides, which will be accretive for Investcorp from day one,” said Rishi Kapoor, Investcorp co-CEO. “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.”