Investcorp is expanding its credit business

Suhail Shaikh comes on board and Rishi Kapoor discusses the place of debt in the firm’s strategy.

Investcorp, a multinational alternative investment firm founded in 1982, is expanding its private credit business under Mike Mauer and a new hire, Suhail Shaikh.

In an interview earlier this month, Rishi Kapoor, the co-chief executive officer of Investcorp with oversight of its credit businesses, objected to the use of the word “pivot” in connection with the expansion. He called it instead “the execution of a long-stated strategy to grow our private credit side, for example, through our BDC and through middle-market direct lending.”

Pursuing the same strategy, in December 2022 Investcorp bought Marble Point Credit Management, a US-based CLO manager. With that acquisition, Investcorp’s assets under management increased by $7.8 billion to $50 billion.

Shaikh will be based in New York and will co-lead the private credit business with Mike Mauer. The current co-head, Chris Jansen, is moving to an advisory role and, later this year, will be retiring.

Shaikh comes most recently from Alcentra, where he was a member of the executive management committee for three years. He brings with him $200 million in AUM and three team members from Alcentra, which was recently bought by Franklin Templeton. This expands the private credit team to 14 professionals.

Prior to Alcentra, Shaikh was a partner at SLR Capital Partners, formerly Solar Capital Partners. Before that, he gained experience in leveraged finance and advisory investment banking at Bank of America Merrill Lynch, CIBC World Markets and JP Morgan.

The expansion comes just as the Federal Reserve has signaled good news for the private credit market. “The Fed is saying it will keep rates higher for longer,” in Kapoor’s words. “This means that private debt funds, a floating-rate asset class, can get high yields and the benefit of higher credit quality too.”

Kapoor participated in the World Economic Forum in Davos, Switzerland last month. He says that the meetings alleviated his sense of the world economy’s perilous condition. “The general view there,” he said, “was that the likely band of potential outcomes in the coming months had narrowed, and that the narrowing allows for planning.”