Investcorp Secures $1.25 Billion for Second GP Staking Fund, Strengthening Market Position
Manama, Bahrain – Investcorp, a prominent global alternative investment firm, has announced the successful closure of commitments exceeding $1.25 billion for its GP staking division, Investcorp Strategic Capital Group (ISCG). This funding round pertains to Investcorp Strategic Capital Partners II (ISCP II) and includes $1.1 billion in fund commitments along with an additional $155 million earmarked for co-investment capital.
Significant Growth in Fund Size
ISCP II has closed at a size that is over 75% larger than its predecessor, ISCP I, marking a notable achievement in a challenging fundraising landscape for private markets. This growth highlights the unique strategy employed by ISCG and the robust relationships it has cultivated with its limited partners (LPs). Following this latest fundraising, ISCG’s assets under management (AUM) now exceed $2.4 billion.
Broadening Investor Base
The latest fund received substantial backing from existing limited partners, with many investors from ISCP I either increasing or maintaining their commitments. ISCG has also successfully expanded its investor base geographically, attracting capital from insurance companies and private wealth channels in the United States, while also securing new investors across Asia, Europe, Latin America, and the Gulf Cooperation Council (GCC). This expansion has strengthened ISCG’s network, particularly among wealth managers, registered investment advisors, single and multi-family offices, and high-net-worth individuals.
Co-Investment Opportunities
In addition to fund commitments, a subset of investors has committed a total of $155 million for co-investments. ISCG plans to offer further co-investment opportunities to its LPs in future ISCP II investments. The firm has also facilitated allocations for LPs into Partner GP funds, enhancing the collaborative investment landscape.
Mohammed Alardhi, Executive Chairman of Investcorp, emphasized the firm’s role as a value-added partner in the middle market across various asset classes and regions. He noted the GP staking strategy as a key element of Investcorp’s growth strategy and expressed optimism about supporting more talented general partners (GPs) in the future.
Commitment to Middle-Market GPs
Anthony Maniscalco, Managing Partner and Head of ISCG, expressed gratitude for the confidence shown by limited partners in the platform designed to accelerate the growth of middle-market GPs. He stated that the successful closure of ISCP II reflects the strength of ISCG’s strategy and the trust built with global investors. The GP staking strategy has become integral to investor allocations, and ISCG aims to remain an active partner to its portfolio.
ISCG is recognized as one of the first active investors in middle-market GPs, focusing on deploying large-cap institutional tools to assist these managers. The firm’s strategy includes supporting GPs with fundraising efforts, enhancing product development, and improving internal infrastructure. ISCG has developed a comprehensive toolkit to assist Partner GPs in various business priorities, including technology integration, operations, human capital management, succession planning, and add-on acquisitions. Additionally, a dedicated internal capital formation team has been established to bolster fundraising efforts for Partner GPs.
Investment Focus and Future Plans
ISCG targets high-growth private capital managers in the middle market, specifically those managing between $1 billion and $10 billion in assets. Since its inception in 2019, ISCG has supported over a dozen GPs involved in private equity, private credit, real assets, infrastructure, structured capital, and secondaries. ISCP II has already made three investments, with a fourth anticipated to close later this year, involving firms such as Monomoy Capital Partners, MML Capital, Banner Ridge Partners, and Vauban Infrastructure Partners. The combined AUM of Partner GPs across ISCP II and its predecessor exceeds $105 billion. ISCG plans to construct a portfolio of approximately ten Partner GPs for ISCP II, adhering to its disciplined and diversified portfolio construction approach.
Fried, Frank, Harris, Shriver & Jacobsen LLP provided legal counsel on the fund formation of ISCP II.
About Investcorp
Investcorp is a global investment manager specializing in alternative investments across four primary asset classes: Private Equity, Real Assets, Credit, and Liquid Strategies. Since its establishment in 1982, the firm has focused on generating attractive returns for clients while creating sustainable long-term value through a disciplined investment process and deep sector expertise.
Investcorp invests its own capital alongside clients, aligning interests across its investment strategies. The firm is committed to responsible investing and sustainable value creation within its portfolio companies and the communities it serves.
Currently, Investcorp manages approximately $60 billion in assets, including those managed by third-party managers. The firm operates from 14 offices across the United States, Europe, the GCC, and Asia, employing around 500 professionals from over 50 nationalities.
For further information, visit www.investcorp.com and follow Investcorp on LinkedIn, X, and Instagram.
Published on 2026-03-05 18:00:00 • By Staff Editor
