Investcorp buys $100m stake in comms firm SEC Newgate

Reuters/Mike Blake

• Investcorp has bought a controlling stake
• SEC Newgate, based in Milan, has 1,500 clients in 22 countries
• Bahrain’s Investcorp manages $50bn of assets

Bahrain’s alternative investment firm Investcorp has invested $100 million to acquire a controlling stake in communications and advocacy group SEC Newgate.

Investcorp’s funding will help the Milan-based business accelerate its development strategy, the companies said on Monday.

The group aims to expand in Europe, the Middle East, Africa and the Asia-Pacific region through organic growth and mergers.

• Investcorp completes first control buyout in China
• Investcorp buys majority stake in US HVAC firm
• Bahrain’s Investcorp to spend $1bn on real estate across GCC

The transaction values SEC Newgate at more than $250 million.

SEC Newgate’s other shareholders, including private equity firm Three Hills Capital Partners, will roll over around 100 percent of their equity investment as part of the transaction, which is expected to close between the third and fourth quarter of this year.

Investcorp manages $50 billion in assets.

Nicola Ferraris, managing director of its European private equity group, will join the board of SEC Newgate, while Fiorenzo Tagliabue will remain CEO.

SEC Newgate has around 1,200 employees, spread across 50 offices in 22 countries. It advises more than 1,500 companies.

Its clients span finance and financial services; health sciences and wellbeing; manufacturing and industry; technology, media and telecom; real estate and infrastructure; and consumer sectors.

Since its delisting from the London Stock Exchange in March 2022, SEC Newgate has expanded through the acquisition of US public affairs firm Global Strategy Group and South American consultancy Another. 

Also on Monday, Investcorp announced a $60.8 million investment in India’s NDR Warehousing – its second investment in the logistics business in 18 months.

In May it acquired a controlling stake in Shandong Jianuo Electronics, a Chinese renewable energy critical components manufacturer. The total investment value was not disclosed but the acquisition was Investcorp‘s first control buyout in China.

In April it acquired a majority stake in Shearer Supply, a US-based heating, ventilation and air conditioning equipment distributor.

In February Investcorp opened an office in Tokyo as part of its strategy to capitalise on Japanese investment opportunities.

It has 14 offices in total, including five in Asia: Mumbai, Delhi, Singapore, Beijing and now Tokyo. Investcorp’s co-CEO Rishi Kapoor told AGBI in February: “It is clear that Asia is on a generally solid foundation from a growth perspective.”