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Inovest Bahrain Case Study

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Inovest Bahrain Case Study
Case: 2
Firm 1: Inovest Bahrain
Firm 2: Investcorp Gulf B.S.C
Introduction:
An investment firm is a company whose main business is holding securities of other companies for investment purposes. The investment company invests money of its shareholders who in turn share in the losses and profits.
Investment firms manage, sell and market funds to the public. Variety of funds and investment services are offered to the investors, which include portfolio management, legal, custodial, recordkeeping, tax management and accounting services.
Investment firms are owned both privately and publicly.
There are least three main types of investment companies: Mutual funds:
A mutual fund takes money from several investors into a pool, and invests in investment
…show more content…
Inovest’s approach to Private Equity ensures that mutual value creation is collectively achieved and Venture Capital emphasizes on value proposition on a scale of economic and social betterment. Third area being Real Estate investment ensures sustainable wealth creation and protection opportunities are available. Whereas, Investcorp is a world leading manager of alternative investments, participates actively in corporate investment and real estate and also provides a diversified investment of hedge funds (i.e. pension funds, sovereign wealth funds, government agencies and financial …show more content…
However investcorp need to pay only B.D0.280 for every B.D 1 of net operating income if we made a purchase at the property’s market-driven value.
Considering earnings per share of inovest it is very low comparing to investcorp. Investors will be interested in investing in investcorp rather than in inovest as the earnings per share of investcorp is very high compared to inovest.
Observing the overall performance of inovest and investcorp we could easily conclude that investcorp is economically running very successfully while inovest is running earning less profit.

Recommendations: Inovest should increase their income so that they will be able to increase their debt coverage ratio which will make them able to cover all the debts. Inovest should try to decrease their expenses so that they will be capable earn more income to cover up mortgages. If inovest increase their income they will be able to increase their earnings per share so that investors will show up to invest in their firm which will again increase their

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