Investcorp - History

History

Investcorp was founded in 1982 with the aim to innovate and introduce non-traditional products and services to the Gulf region. The concept behind the creation of Investcorp was devised and implemented at the Arab Monetary Fund during the period 1980-1982, when Dr. Jawad Hashim was its President. In July 1980 Hashim employed Nemir Kirdar as one of his advisors on one-year secondment from Chase Manhattan Bank. Initially, Kirdar’s task was to prepare certain feasibility studies in connection with the development of Arab financial markets, promotion of Arab monetary and economic integration and the quest for investment opportunities for the surplus of the oil-exporting Arab countries. Kirdar delivered a report entitled: ARAB MONETARY FUND PROJECT: ESTABLISHMENT OF A PRIVATE INVESTMENT COMPANY. Under the auspices of AMF and on its expense, a new financial institution, Investcorp, was created in 1981/1982. Kirdar would later assert that Investcorp was his “brainchild” without reference to the AMF's role in its creation. To pay for his share subscription in Investcorp, Kirdar requested a second loan for US$600,000 from Dr. Hashim in March 1981.

The establishment of Investcorp commenced in May 1981 with the first founding shareholders subscribing and affecting payments on May 13, 1981. By March 31, 1982, all committed founding shareholders had subscribed and paid their funds. In May 1982, the public subscription was conducted and in June 1982, a general shareholders meeting was convened and the shareholders elected the first Board of Directors. In July 1982, the final incorporation process was completed and Investcorp started to develop its policies and procedures manuals, background material and logistical requirements and had begun to hire its staff. In January 1983, Investcorp commenced business operations.

On an official visit to Abu Dhabi in early 1977 (in his capacity as Presidential Advisor) to deliver a letter from Saddam Hussein to the then President of United Arab Emirates, Dr. Hashim met Nemir Kirdar at a dinner party. When Hashim assumed his post as President of AMF, Nemir Kirdar, as the representative of Chase Manhattan Bank discussed mainly the banking relationship between AMF and Chase Manhattan. Hashim also used to outline the objectives of the AMF in relation to the promotion of Arab capital markets and best ways of utilizing the financial surpluses of the Persian Gulf region through a viable investment entity.

In the Summer of 1979, Dr. Hashim paid an official visit to Bahrain. During this visit, he met with Nemir Kirdar at Chase Manhattan Bank. On this occasion Dr. Hashim again discussed his “dream investment vehicle” with Mr. Kirdar, asking if he would join the AMF staff to undertake a detailed feasibility study on the matter. Dr. Hashim approached the chairman of Chase Manhattan, David Rockefeller, to second Kirdar for a period of one year. Again, Kirdar politely declined. Instead, he suggested that when his assignment in the Persian Gulf came to an end, and before moving to another post with Chase, he might consider taking a long leave of absence to join the AMF on secondment basis from Chase Manhattan.