Investcorp announced that its GP staking arm, Investcorp Strategic Capital Group (ISCG), has closed its second flagship vehicle, Investcorp Strategic Capital Partners II (ISCP II), and associated vehicles, with commitments totaling more than $1.25 billion.
The fund includes $1.1 billion in commitments and an additional $155 million of committed co-investment capital. The new vehicle closed at a size more than 75% larger than its predecessor, ISCP I, highlighting strong investor demand despite a selective fundraising environment across private markets.
Following the close of ISCP II, ISCG’s assets under management have surpassed $2.4 billion. The fundraising attracted significant support from existing limited partners, with the majority of investors in the first fund maintaining or increasing their commitments. The investor base also expanded geographically, with new participants from Asia, Europe, Latin America, and the Gulf Cooperation Council, alongside continued participation from U.S. investors.
The strategy also deepened its reach among private wealth channels, including wealth managers, registered investment advisors, single and multi-family offices, and high net worth individuals. A subset of investors committed $155 million specifically for co-investments, which ISCG expects to deploy alongside investments made through ISCP II.
Investcorp’s GP staking strategy focuses on backing high-growth middle-market private capital managers with between $1 billion and $10 billion in assets under management. Since launching the strategy in 2019, ISCG has supported more than a dozen partner firms across private equity, private credit, real assets, infrastructure, structured capital, and secondaries.
ISCP II has already completed three investments and expects to close a fourth later this year. Current partner firms include Monomoy Capital Partners, MML Capital, Banner Ridge Partners, and Vauban Infrastructure Partners. Across ISCP II and its predecessor fund, the combined assets under management of partner GPs exceed $105 billion.
ISCG expects to build a portfolio of roughly 10 partner GPs through the second fund. In addition to providing capital, the strategy supports partner firms with fundraising, product development, technology integration, operational infrastructure, human capital management, succession planning, and add-on acquisitions.
To support these efforts, ISCG has established a seven-person internal capital formation team dedicated to helping partner firms expand their investor base and accelerate growth.
Fried, Frank, Harris, Shriver & Jacobsen LLP advised on the formation of the ISCP II fund.
KEY QUOTES
“Since we launched our growth strategy ten years ago, Investcorp has proven itself as a value-added partner of choice in the middle market across asset classes and regions. Our GP staking strategy is emblematic of this approach, and we look forward to backing more talented GPs in the years ahead and expanding their reach and capabilities.”
Mohammed Alardhi, Executive Chairman, Investcorp
“We are deeply grateful for the support and conviction of our limited partners, who believe in the platform we’ve built to support middle-market GPs accelerate their growth and enhance longevity. ISCP II’s successful close reflects the strength of our strategy and the trust we have built with investors globally. The GP staking strategy has become a core component of investor allocations, and we are excited to continue as an active, hands-on partner to our portfolio.”
Anthony Maniscalco, Managing Partner And Head Of ISCG, Investcorp
