2012 Annual Shareholder Conference September 20, 2012 - Bahrain

Opening addressNemir Kirdar, Executive Chairman & CEO

Financial Performance FY2012Rishi Kapoor, Chief Financial Officer

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FY12 performance summary

• Third consecutive year of positive income since the global financial crisis

• $236m fee income, 20% increase over FY11 ($197m)

• Driven by increase in acquisition and placement activity plus strong performance of CI portfolio companies

• Asset-based income decreased to $31m

• Negative impact of European sovereign debt crisis and slowing economic environment on hedge fund returns and European CI portfolio valuations

• Interest expense lower by 15% at $48m in line with balance sheet deleveraging plan (FY11: $56m)

• Operating expenses lower by 30% at $151m (FY11: $215m)

(in $mils) FY12 FY11

Fee income 236.0 197.4

Asset-based income 31.0 216.2

Interest expense (47.8) (56.0)

Operating expenses (150.7) (215.2)

Net income 67.4 140.3

Numbers do not add up due to small amount of provisions

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Asset yields – impacted by market volatility

FY12 FY11 FY10

Corporate investment 5.6% 13.1% 12.8%

Real estate 7.9% 20.1% (34.2%)

Hedge funds * (8.5%) 6.8% 15.0%

Avg. co-investment yield ** 1.3% 8.6% 4.9%

* Annualized non-$ weighted returns

** Includes treasury and liquidity income

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Balance sheet – continued deleveraging

(in $mils) Jun-12 Jun-11

Cash and deposits 351 366

HF co-investments 414 607

CI & RE co-investments 1,376 1,311

Working capital 609 575

Total assets 2,750 2,859

Short term debt 205 318

Medium and long term debt 1,246 1,255

Working capital 254 225

Total liabilities 1,706 1,798

Total equity 1,044 1,060

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Successful refinancing in challenging market conditions

• $529m of new term and forward start facilities

• Effectively extends 63% of $838m debt maturing in Mar/Apr 2013 to Sep 2015

• Structured to implement continued controlled deleveraging while maintaining operational flexibility

• Clearly underscores strong bank lending support and relationships

Participating banks

1 Citigroup

2 Deutsche Bank

3 RBS

4 Barclays

5 J.P. Morgan

6 ING

7 Bank of America

8 Commerzbank

9 Gulf Bank KSC

10 Credit Suisse

11 Raiffeisen

12 Al Khaliji

13 First Gulf Bank

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Liquidity covers debt repayments through 2015

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Key target metrics

Jun-11 Jun-12

Total liquidity* $1.5b $1.0b

Co-investments / shareholder equity ** 1.8x 1.7x

Leverage (excl. transitory balances) 1.7x 1.6x

Capital adequacy (Basel II) 25.7% 26.9%

Average client AUM $9.2b $8.7b

* Cash, undrawn revolvers and HF co-investments

** Important for rating agencies (one of the drivers for investment grade is to be below 2.0x)

Hedge Funds Savio Tung, CEO – North America

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Portfolio – product performance

Fund 2H FY09 FY10 FY11 FY12

Single Manager Equal Weighted Portfolio* 15.2% 10.7% 2.1% -0.9%

Investcorp Proprietary 11.7% 10.8% 4.9% -4.7%

HFRI FOF Composite Index 5.2% 4.7% 6.7% -4.4%

MSCI World Index 3.7% 9.4% 19.5% -4.3%

* Single Manager Equal Weighted Portfolio is rebalanced annually.

The performance for FY12 are initial estimates as of June 30th 2012

Investcorp Proprietary returns reported are unlevered returns on the gross exposure

Factors that negatively affected returns

Uncertainty in Europe and other geopolitical events that led to significant volatility

Asset class correlations moved to exceptionally high levels

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Performance – Single Managers

Investcorp SMF Track Record (Equal-weighted) versus the HFRI FoF Composite Index

Investcorp SMF Track Record

(Equal weighted)

HFRI FoFComposite Index

Annualized Returns

Since Inception 4.6% 2.1%

Most Recent 60 Months 2.9% (2.0%)

FY 2012 (0.9%) (4.4%)

Performance results are from December 2004 (Investcorp Single Manager Platform inception) through June 30, 2012.FY 2012 performance is a total return as of June 30, 2012Past performance is not a guarantee of future performance.

Significant outperformance

since inception and in

recent periods

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Total AUM = $4.3 billionClient AUM = $3.5 billion

Investor profile

Note: Figures as of June 30, 2012

Investor profile is predominantly institutional (US) with a focus on Customized Accounts and Single Managers.

Product TypeRegion

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Portfolio liquidity and strategy exposures

Time periodCumulative % (available for monetization)

Within 1 month 28%

Within 3 months 67%

Within 6 months 76%

Within 12 months 92%

Over 12 months 100%

Note: Liquidity profile and strategy allocations are as of June 30th 2012

Liquidity Portfolio exposures

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Hedge fund strategy outlook

• Primary focus of the investment strategy is to:

− Reduce risk

− Protect portfolio from market dislocations

• Overall, we prefer lower-beta strategies where improvement in spreads, valuations and stock selection alpha is resulting in better returns (both absolute and risk-adjusted)

Strategy Outlook

Macro Modestly Positive

Convertible Arbitrage Modestly Positive

Fixed Income Relative Value Modestly Positive

Equity Market Neutral Modestly Positive

Portfolio Insurance Modestly Positive

Hedge Equities Neutral

Event Neutral

Distressed Neutral

Corporate InvestmentSteve Puccinelli, Managing Director

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US and European Buyout Market

• Despite the challenging macro environments, deals are still getting done

• Industry has matured with significantly higher number of active PE funds today vs. 10 years ago

• Debt is still available in size and with attractive terms in North America; less debt available in Europe

• Given excess demand, valuations (particularly for quality assets) remain very high in North America; valuations are lower in Europe but with more uncertainty regarding future prospects

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Valuation Levels

Average purchase price multiples

Source: S&P Capital IQ LCD

5.9

6.9

7.6

8.2

9.08.8

9.5

6.5

7.3

9.1

0x

1x

2x

3x

4x

5x

6x

7x

8x

9x

10x

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

EuropeNorth America

7.5

8.3

9.09.6 9.5

9.09.3

8.9

0x

1x

2x

3x

4x

5x

6x

7x

8x

9x

10x

2004 2005 2006 2007 2008 2009 2010 2011

Valuation levels near 2006-2008 highs

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PE Returns Remain above Public Market

Source: Thomson Reuters, Bloomberg, Bain. US and European buyout fund returns; five-year rolling pooled IRR.

US BUYOUT FUNDS EUROPEAN BUYOUT FUNDS

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Outlook for 2012 and Beyond

• While industry returns have declined over time, they have also been cyclical – are we on the verge of a cyclical upswing?

• Returns for funds invested in prior recessions have been strong

• Competitive dynamics could improve in the medium term

• Some funds will not survive this cycle, creating opportunities for those who do

• Capital overhang likely to subside with fund sizes getting smaller

• Rates are still low by historical standards

• Any increase in rates will likely put negative pressure on valuations, which should mitigate any adverse changes in the cost of debt

• Over 6,000 companies owned by private equity funds should be coming to market over the next 2-3 years in the US alone

• Next few years should see solid deal flow in both Europe and the US

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Portfolio performance

US portfolio continued to mostly outperform, some of our European portfolio companies understandably faced challenging conditions

given the economic headwinds in Europe

3

10

4

2

Slight decline 0-10% growth 10-20% growth 20-30% growth

No.

of

port

folio

com

panie

s

Revenue growth: FY12 vs FY11

* Excludes newly acquired GL Education, Archway and Esmalglass

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Investment Activity in H2 FY12

Acquired March 2012

• UK’s leading independent provider of educational assessment solutions

Acquired June 2012

• Leading global producer of ceramic glazes, coloursand inkjet inks used in the manufacturing of ceramic

and porcelain tiles

Three acquisitions

Acquired June 2012

• North America’s leading outsourcer of marketing fulfillment services

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FY 2013 Focus

• Placement of Esmalglass and Archway

• 4 new acquisitions• Currently in four active processes (2 US, 2 Europe)

• Continued focus on add-on acquisitions for CI portfolio

• Integration of CI and CI–Tech

Corporate Investment – TechnologySteve Puccinelli, Managing Director

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Who are we?

Tra

ns

ac

tio

n C

om

ple

xit

y

High

Mid Late MatureEarlySeed

Company Life Cycle

Low

Venture Capital Funds

Buyout Funds

InvestcorpTechnology

Partners • Businesses that are either technology or technology-enabled businesses

• Investing approximately $20-$75 million per deal

• Typically have revenues of $10 million to $120 million

• Scalable business models

• Over $1 billion accumulated assets under management over three funds

• Cross-Atlantic team of 12 investment professionals, working together since 2000

Business PositioningCapabilities

Investment Profiles

We invest in US and European based small to mid-size companies exclusively in the technology sector

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Technology market environment: Today

• Recent technology IPOs have been met with strong investor demand, with 23 US tech IPOs completed in the first six months of 2012 compared to 16 completed in the same time period the prior year

• Technology IPOs have been placing at or above their expected pricing ranges.

• Technology IPO market showing signs of recovery after troubled Facebook offering• Servicenow was trading 45% above initial public offering one week after listing.

• Facebook continues to grow revenue above analyst expectations. The company’s main challenge remains its potential to monetize ads from its mobile offering.

IPO

M&A Activity

• Technology M&A outlook is optimistic due to top US tech companies sitting on huge piles of cash and a recent flurry of M&A activity

• Many companies owned by private equity are expected to come to market over the next two years

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FY12 Key Accomplishments

Investment Activities

• Closed $28m new Fund III investment in Thought Equity Motion, a provider of internet-based video management services to large production houses and content owners

Portfolio Activities

• Follow-on investments in eviivo Limited

• Finance acquisition of Hotel Solutions Direct

• Buy out minority shareholders

• Support CEO’s growth strategy

• Follow-on investment in OpSec Security Group plc

• Finance acquisition of Delta Labelling

• Follow-on investments in selective Fund II portfolio companies• Finance future growth and position for exit

Corporate Investment – MENAJames Tanner, Managing Director

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GCC & Turkey – Macroeconomic Growth

� Investcorp Gulf Opportunity Fund I (“Investcorp GOF”) target markets continue to demonstrate resilience against amore challenging global economic backdrop. GCC and Turkey are expected to continue to outperform the US and theEuro area with 2012 GDP growth rates estimated at 5.0% and 2.3%, respectively

� GCC growth is underpinned by the continuation of expansionary fiscal and accommodative monetary policies whichare fuelled by healthy oil revenues (oil output up 5.5% year-on-year)

Source: IMF

Real GDP Growth (%)

2012e

2013e

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GCC Government Budget Breakeven Levels

� Oil prices, partially buttressed by regional instability,increased by 4% since July 2011 despite weakening globaleconomic growth

� Average GCC breakeven price of $80/bbl represents the firstdrop since 2003 as KSA and UAE non-recurring fiscalpressures ease

� Oil prices remains above GCC sovereign budget breakevenprices (except Bahrain)

Crude Oil – Brent ($/bbl)

50

60

70

80

90

100

110

Breakeven Budget Prices ($/bbl)

Bahrain

KSA

Qatar 40

UAE

Kuwait

Oman

Brent Spot

Source: Bloomberg, IIF Regional Review April 2012, Emirates NBD Bank 2012

120

130

140

4%

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Investcorp GOF – Portfolio Overview

� IT distributor and supply chain manager

�Acquired in Nov 08

�Minority stake

�UAE HQ

� Jewelry manufacturer and distributor

�Acquired in Mar 09

�Majority stake

�KSA HQ

� Industrial gas manufacturer /

distributor

�Acquired in Nov 09

�Minority stake

�Kuwait HQ

�Agro trader and supply chain manager

�Acquired in Sep 10

�Minority stake

�Turkey HQ

�Minority stake in a GCC company

�Signed in Jul 2012

�To be announced jointly with the sellers in Oct

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�Retailer of branded menswear

�Acquired in Sep 12

�Minority stake

�Turkey HQ

EXITED

NEWFOLLOW

-ON

PENDING ANNOUNCEMENT

NEW

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� A leading branded menswear apparel retailer in Turkey

Investment Background

• Investcorp GOF acquired a significant minority stake in Orka Group in September 2012

• The Group has 172 sale points, comprised of 121 stores in Turkey, 3 in Romania/Spain and 48

franchises worldwide. Core brand is #1 menswear brand in Turkey with 97% awareness

• Distributes 3 brands (Damat, Tween and D'S Damat), appealing to a wide spectrum from the

mid segment to the luxury segment

• Damat and Tween are sold in the same stores and are positioned at a higher price level, targeting mainly A & B socio – economic

segments

• D'S has a lower price positioning, targeting B & C segments

• Founded in 1986 by current CEO focusing on mid to upper priced brands of both the formal and casual

wear segments

Investcorp Value Add

• Large and growing Turkish clothing and footwear market

• Increasing penetration of shopping malls benefiting chain stores

• Strong Orka Group brands, with high awareness, targeting a wide spectrum of the market

• Damat is one of the top 5 local brands in Turkey

• Established network of 130 stores in Turkey

• Strengthen management and governance

• Significant value add in brand positioning, channel strategy, collection management, merchandising,

logistics

• Assist in implementation of best in class systems and processes to enhance reporting and risk management

Investment Rationale

Investcorp GOF – New Investment

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Investcorp GOF – Portfolio Update

Portfolio Company

Value Enhancement Measures Update

L’azurde

� Achieved a significant improvement in performance and profitability

� Diversified the business by expanding the retail segment

� Enhanced product design including increased focus on diamond jewelry

� Revamped the brand with new advertising campaign

� Strengthened the company’s senior management team

Gulf Cryo

� Achieved higher year-on-year profit despite challenging market dynamics

� Closed an add-on acquisition of an industrial and medical gas company in Jordan

� Commenced construction of a new production facility in Abu Dhabi to become operational by 2013

� Increased the company’s shareholding in an air separation facility in Kuwait

Tiryaki Agro

� Invested $20 million as a follow-on capital increase to accelerate growth

� Worked with management on securing a $25 million equity investment from the European Bank for Reconstruction and Development (“EBRD”)

� Strengthened the company's senior management

� Improved risk management and reporting by launching a new ERP system

Real Estate InvestmentsSavio Tung, CEO – North America

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Investment Market Outlook

• Environment for investing is steady

• Flight capital and increased investor allocations bolstering US real estate

• Demand primarily for stable, high quality assets in major markets with reliable cash flow

• Low interest rates benefitting leveraged buyers, particularly for high quality sponsors

• Some investors moving beyond the safety of Class A properties and major markets in pursuit of yield

35

Property Market Outlook

• Operating fundamentals improving at a moderate pace

• Strongest markets have globally-competitive US industries:

• Technology• Communication• Energy• Healthcare• Entertainment

• Vacancy rates declining and rents growing slowly for most asset classes

• Capital improvements on existing product still modest. Very few repositioning plays.

• Continued focus on expense management to improve / maintain investment returns

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Transaction Volume

• H1 2012 volumes higher than H1 2011

• CY2012 volumes expected to modestly outpace CY2011

totals

• Volumes still well off peak levels of CY 2007

• High levels of maturing commercial loans prompting

acquisition and financing opportunities

- $2 trillion maturingfrom 2012-2018

Northern California Portfolio San Francisco Bay Area, CA

Transaction Volume $ Billions (Quarterly)

Source: Real Capital Analytics

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Capitalization Rates

• Low interest rate environment in US keeping downward

pressure on cap rates

• Cap rates have declined slightly since the beginning of 2012

• Cap rates expected to remain low in the

medium term

Broadway Webster Medical PlazaOakland, CA

Source: Real Capital Analytics

Average Acquisition Cap Rates (Quarterly)

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Business Activities Update

New Investments

• Deployed $120.5 million since January 2012 and $216.3 million since September 2011

• FY2012 three second half placements all fully subscribed

• Achieved first close and completed first investment in new Investcorp Real Estate Credit Fund III

Questions & answers