Investcorp closed a $1.25 billion fund focused on minority stakes in private investment firms, drawing commitments exceeding $1.1 billion despite escalating Gulf conflicts. The vehicle, the firm's second GP-stakes fund, attracted backing from existing limited partners and new investors across Asia, Europe, and Latin America. The fund is roughly 75% larger than its predecessor, expanding Investcorp's GP-staking assets to over $2.4 billion. This deal highlights continued Middle East deal activity amid regional tensions, with Bahrain's largest overseas corporate takeover also advancing.

GP stake deals are surging as private capital firms mature and founders plan generational transitions. Investcorp's strategy targets mid-market firms managing $1 billion to $10 billion in assets, helping them expand fundraising and build infrastructure. Since 2019, the unit has backed over a dozen private-capital firms, including Monomoy Capital Partners and Banner Ridge Partners. The latest fund's success contrasts with recent high-profile exits like Blackstone's $400 million gain from Marathon Asset Management.

Despite regional conflicts, investors are pushing transactions forward, with Bahrain's largest-ever overseas corporate takeover progressing. The continued fundraising activity signals resilience in Gulf markets, though risks remain amid ongoing geopolitical volatility.