$20 billion alternative investor shares his favourite long-term themes

  • Rishi Kapoor is the CEO of Investcorp, a Bahrain-based alternative investment firm with over $US20 billion under management and a long-term investment outlook.
  • In US real estate, Kapoor likes warehouses and distribution centres in urban hubs that will support the massive shift to e-commerce. Kapoor also like multi-family residential in the US as the millennial population is much more mobile and not as focused on owning their first home.
  • From a private equity perspective, Kapoor says they have pivoted to the services sector. An area he says was unattractive for a long time because the companies have no hard assets. They are focused on business services that are least susceptible to disruption from technology. He says these opportunities can be found at one end with very high value add and on the opposite low end of the space.
  • When asked what investors should be worried about, Kapoor says that he is expecting valuation multiples to contract and normalize across the board. Anything they plan to sell in five years, they expect to sell at normalized multiples as opposed to the elevated optimistic levels of today.

Investcorp is a Bahrain-based alternative investment firm with over $US20 billion under management. Investcorp CEO Rishi Kapoor sat down with Business Insider’s Sara Silverstein at the World Economic Forum in Davos, Switzerland. Kapoor reveals where Investcorp is seeing investment opportunities and risks. Following is a transcript of the video.