Investcorp Raises $1.22 Billion for Second Fund, Exceeding $1.1 Billion Target
Key Facts
Investcorp announced on October 1, 2026, the final close of its second North American private equity fund at $1.22 billion, exceeding its fundraising target of $1.1 billion. The company said the new fund is larger than its first. The announcement concerns a specific fund and does not say that Investcorp exceeded its overall asset management or fundraising targets for fiscal 2026. Commitments came from a diverse group of institutional investors in North America, Europe, the Middle East and Asia. The fund directs investments to mid-sized U.S. services companies, linking capital from multiple regions to a specific U.S. investment strategy.
Investcorp’s North American private equity fund focuses on professional and business services, targeting companies with earnings before interest, taxes, depreciation and amortization of between $10 million and $50 million. The company describes its approach as selective, targeting subsectors with stable, non-cyclical demand. The strategy also focuses on fragmented markets supported by long-term trends. This scope defines the companies the fund seeks to invest in, rather than allocating its capital across multiple asset classes. Mohammed Alardhi, Investcorp’s executive chairman, said the United States is the company’s largest market and remains central to its global growth strategy.
The fund has invested in Guardian Fire Services and Berger Financial Group, completing its investment in the former in December 2025 and in the latter in July 2026. Guardian operates in fire protection services, while the investment in Berger represents an asset management business. Since the fund invested in Guardian, the company has completed two additional acquisitions: Midwest Protection Services and Houston Fire & Safety. These deals show that the fund began deploying capital before announcing its final close. Investcorp said institutional limited partners in its first fund invested more than $1 billion in fee-free co-investments, a track record tied to the first fund.
The new fundraising comes as part of Investcorp’s broader effort to increase its assets under management, with figures varying according to measurement date and the definition of assets. The company reported $62.3 billion in assets under management on December 31, 2025, according to a presentation that included assets managed or co-managed by the company. Its official website said assets under management reached $64 billion on June 30, 2026. The company also said global fundraising totaled $7 billion in fiscal 2025, and assets under management rose during that year from $53 billion to $60 billion. These figures provide context for the company’s growth, but do not change the scope of the October announcement, which was limited to the final close of NAPE Fund II.
In March 2026, Investcorp’s second fund focused on minority stakes in asset management firms closed with total commitments of $1.25 billion, including $155 million for co-investments, and was about 75% larger than its predecessor. This brought the assets of its asset management stakes investment unit to more than $2.4 billion. These figures relate to a different strategy from the North American private equity fund, although both reflect the company’s fundraising activity. In its March presentation, Investcorp set a target of profitable growth to $100 billion in assets under management in 2026 and beyond. Alardhi said in July that the company was targeting growth from $63 billion to $100 billion over five to seven years, with a focus on private credit, infrastructure and data centers.
In July, Alardhi told The National that Investcorp had closed 4 significant deals over four months of regional conflict, across information technology, facilities management, industrial real estate and senior housing. But the announcement of the U.S. fund’s close did not link fundraising to the conflict or those deals, and described the fundraising environment as challenging. On September 28, the company announced U.S. industrial real estate transactions with a total value of $800 million. Plans announced for NAPE Fund II include investing in additional in-house resources to expand value-creation capabilities and making artificial intelligence resources available to portfolio companies. Together, these reflect a completed fundraising close and operational plans to support the companies in which the fund invests.