BAHRAIN |Investcorp announced it sold 75% of its stake in U.K. based payments company Skrill to CVC Capital Partners for an enterprise value of €600 million ($780 million). Investcorp’s original equity stake was €25 million — made by Investcorp Technology Partners’ second fund in 2007 – and it made other, follow-on investments of undisclosed amounts, according to a person familiar with the situation. The return on equity investment came in at eight times, the person said. Investcorp retains a 25% stake and a board seat.
How a return of eight times ranks among other deals made by companies in the region is tricky to calculate given the opacity of private equity transactions, and no deal-by-deal breakdown is available. More anecdotally, one regional private equity executive said that even without clear financial data, the return from a deal that sets an enterprise value of €600 million on an initial investment of €25 million was “still phenomenal”.