Bahrain’s Investcorp invests $100m in communications firm SEC Newgate

Bahrain-based Investcorp has agreed to invest $100m for a majority stake in Italian communications and advocacy group SEC Newgate. The deal values SEC Newgate, which operates in 22 countries, over $250m.

Investcorp said SEC Newgate’s other shareholders will roll over 100 per cent of their equity investment as part of the transaction. The deal is expected to close between the third and fourth quarters of 2023, subject to regulatory approvals.

“SEC Newgate aligns with our investment approach to back strong, committed management teams operating differentiated businesses in growing sectors,” said Jose Pfeifer, head of Investcorp’s European Private Equity Group.

“We will use our resources to support SEC Newgate’s geographic expansion, growth through acquisitions and greenfield developments.”

The alternative asset management firm said the investment will help SEC Newgate accelerate its development strategy, with a focus on expansion in EMEA and the APAC region through both organic growth and M&A.

Today, #Investcorp announced its investment in @SECNewgateGroup, a global strategic communications and advocacy group. We look forward to working with the team in supporting the firm on its growth journey. Read more: https://t.co/6LLaELZhO0 pic.twitter.com/Xbv4wJ4pqk

— Investcorp (@Investcorp) July 3, 2023

Under the deal, Nicola Ferraris, Investcorp managing director, will join the board of SEC Newgate

“Since its delisting from the London Stock Exchange in March 2022, SEC Newgate has grown rapidly and expanded in the US and Central and South America through transformational acquisitions,” the Bahraini investment firm said in a statement.

Investcorp has a long history of investing in and supporting people-based professional services and communications businesses.

The company’s notable investments include management consultants AlixPartners, strategic communications advisor ICR, workforce management pioneer PRO Unlimited (now Magnit), talent and entertainment company United Talent Agency and business advisory firm CrossCountry.

Since 2012, it has invested more than $1.96bn in companies across Europe. The SEC Newgate deal follows previous investments in other Italian companies such as Gucci, Riva and Dainese. The Bahraini firm’s current portfolio of Italy-based companies includes CloudCare, Vivaticket, Corneliani and HWG / Sababa Security.

Investcorp expands portfolio

In other news, Investcorp has made a follow-on investment of $60.8m in NDR Warehousing, one of India’s largest warehouse development and operating platforms. The transaction comes after the Bahrain-based investment firm-led investment round of $55m in NDR Warehousing last year.

NDR Warehousing’s well-diversified asset portfolio comprises warehouses spread across 10 cities in India including Chennai, Mumbai, the National Capital Region, Bangalore, Pune, Coimbatore and Kolkata.

Investcorp’s India Real Estate team invests in real estate projects located in top-tier cities across the country. To date, the business has deployed over $350m across the warehousing, residential and education-related sectors broadly with a social infrastructure focus. The alternative asset management firm has invested across India’s consumer tech, healthcare, financial services, retail, SaaS, e-commerce, and technology sectors.

Read: Bahrain’s Investcorp launches presence in Japan