Investcorp is avoiding large-scale data centre investments, citing excessive capital inflows that have compressed returns. Co-CEO Rishi Kapoor told Reuters the firm sees better risk-return profiles in domestic services businesses. The $60bn asset manager is prioritizing professional, healthcare, and transportation services in the US, Gulf, and India.

Kapoor’s comments at Davos highlight a growing split in private equity strategies. While many chase AI-linked infrastructure, Investcorp seeks defensively positioned businesses insulated from geopolitical volatility. He also expressed concerns over inflated valuations and a potential AI bubble, even as investment into artificial intelligence infrastructure surges globally.

The firm sees a strong IPO pipeline across its core markets, with several portfolio companies potentially listing this year. India remains a key focus, where IPOs are a viable monetisation route for private sponsors. This divergence reflects how investors are balancing high-growth tech bets against more predictable cash flows.