• Investcorp secures USD 1.25B for its second GP-stakes fund, expanding its strategy of buying minority positions in private capital firms.
• The fund drew global backing from Asia, Europe, Latin America, the GCC, and US private wealth channels, including family offices and advisors.
• The strategy targets mid-market private capital firms managing USD 1B–10B, supporting fundraising, infrastructure growth, and tools like generative AI integration.

Investcorp

Bahrain-based alternative asset management giant Investcorp closed USD 1.25 billion for its Investcorp Strategic Capital Partners II ((ISCP II) fund. Its GP staking arm, Investcorp Strategic Capital Group (ISCG) raised USD 1.1 billion in fund commitments and an additional USD 155 million of committed co-investment capital.

The new fund received backing from existing limited partners, with many investors increasing or maintaining their commitments. It also drew new investors from Asia, Europe, Latin America and the Gulf Cooperation Council. In particular,this includes Wealth Managers, Registered Investment Advisors, Single and Multi-Family Offices, and High Net Worth Individuals, Furthermore, it expanded the geographic reach and diversification of its investor base across insurance companies and private wealth channels in the US.

GP Stakes 

GP stake deals are the business of taking minority positions in investment firms. This comes amid GP stakes deals booming as the private capital industry expands and founders start planning for generational changes. 

Its strategy focuses on backing mid-market private capital firms managing between USD 1B and USD 10B in assets, supporting their fundraising, infrastructure, and growth initiatives. Furthermore, its approach centers on supporting GPs with fundraising in key investor channels and enhancing strategy and product development. It also supports the GPs in further development of their internal infrastructure. 

ISCG has developed a comprehensive toolkit designed to help partner GPs address core business priorities, This includes product development, generative AI integration, technology, operations, human capital management, succession planning, and add-on acquisitions.