Istithmar World

Istithmar World
Type Subsidiary
Industry Finance and Insurance
Founded Dubai, UAE (2003)
Headquarters Dubai, Dubai, UAE
Key people Sultan Ahmed bin Sulayem, Chairman
Products Financial Services
Parent Dubai World
Website www.istithmarworld.com

Istithmar World ("istithmar" is Arabic for "investment") is an investment firm based in Dubai, United Arab Emirates (UAE). This company is a state-run business owned by Dubai World, a Dubai government-owned company, and was established in 2003. Originally known as "Istithmar," the company was renamed as "Istithmar World" in 2008.

Istithmar World, which was created in 2003 as the investment arm of Dubai World specializes in private equity and alternative investment opportunities globally. In the five years since its inception, Istithmar World has built a portfolio of investments in markets ranging from North America and Europe to Asia and the Middle East, and across a variety of sectors, including consumer, industrial, financial services and real estate.

An analysis of Istithmar's investment portfolio which included the investment of $3.8 billion with an associated $ 14 billion of debt, has not performed positively. In a number of cases, Istithmar has lost control of assets or sold at a loss. As a subsidiary of Dubai World, the company has been mentioned in numerous press reports related to the high debt levels of its parent. Since late 2009, the company has seen numerous departures of high profile executives.

Contents

Istithmar's Divisions

Headquartered in Dubai, UAE, with offices in Shanghai, China and New York, United States, Istithmar World invests through its three separately-managed divisions: Istithmar World Capital, Istithmar World Aviation and Istithmar World Ventures.

Board & Management

The Board of Istithmar [1] is led by the Chairman, Sultan Ahmed Bin Sulayem who is also the also Chairman of DP World, a ports operator, Nakheel, a property company and other businesses. Other Board Members include Jamal Majid Bin Thaniah (Group Chief Executive Officer of Dubai World), Ahmed Bin Sulayem (COO of Dubai Multi Commodities Centre), Maryam Sharaf (CFO of Dubai World), Saeed Ahmed Saeed (CEO of Limitless), and Yuvraj Narayan (CFO of DP World).

Each of the divisions had its own management teams until a re-organisation was enacted at the end of 2009 and in early 2010. Istithmar World Capital saw the departure of its co-CIOs, John Amato and Felix Herlihy, who had joined the firm in 2006,[2] who announced their departure in September 2009.[3] On 20 January 2010, the CEO of Istithmar World Capital, David Jackson announced that he would be leaving the firm.[4] Andy Watson, who had been promoted from CIO of Nakheel to CIO of Istithmar became acting CEO.

Dubai related Financial Concerns

On 26 November 2009, the Wall Street Journal reported that Dubai World was seeking to sign a 6 month debt standstill agreement with its creditors.[5] In response to the announcement Moody's and Standard & Poor's downgraded the debt of various Dubai government-related entities, with Moody's downgrading the affected agencies to sub-investment grade status. The effect of the announcement was wide spread fear in the global financial markets with a negative impact of equities markets around the world and a significant increase in the cost of insuring debt issued by Dubai related entities.[6]

On 30 November 2009, Dubai World made a statement in an attempt to counter rumours and mis-understanding.[7] In the statement, Dubai World indicated that Istithmar would not be part of the proposed restructuring process. Instead the restructuring process would focus on several property related subsidiaries, most notably Nakheel. The statement noted that the total debt subject to the proposed restructuring was circa $26 billion.

Investment Portfolio

Istithmar World Capital states on its website that it has deployed $3.5 billion of capital in 35 investments across the globe. In an interview with the Financial Times in March 2009, the then CEO, David Jackson indicated that total assets under management by Istithmar had declined due to the global financial crisis and where $9 billion by the end of 2008.[8] In the article, Jackson indicated that Istithmar had delivered returns of approximately 10% since its foundation. According to The Times in an article on 7 February 2010,[9] Istithmar invested a total of $3.8 billion of its own capital from its foundation and took on an additional $14 billion of debt.

Existing and historic investments include:

In addition to preceding list of investments, the re-organisation of Dubai World, announced in October 2009, led to a number of other assets being transfer to Istithmar from an investment management perspective.[52] These assets included Dubai World Africa, an investment vehicle for the African Continent. The flagship investment is the Victoria & Alfred Waterfront in Cape Town, South Africa. Other investments include game reserves, wildlife conservation and eco tourism in Africa, with operations in South Africa, Rwanda, Comoros, Mozambique, Senegal and Zimbabwe.

External links

References

  1. ^ Board of Directors
  2. ^ Istithmar brings seasoned investment professionals on board as Co-Chief Investment Officers
  3. ^ Blowout at Barneys
  4. ^ Istithmar boss Jackson steps down
  5. ^ Dubai World Seeks Debt Standstill
  6. ^ Fear stalks global markets on Dubai debt crisis
  7. ^ Statement from Dubai World
  8. ^ Istithmar set to launch fresh asset sales
  9. ^ a b QE2 sets sail in Dubai sell-off
  10. ^ High tide for Hyflux?
  11. ^ Istithmar re-opens old wounds in Singapore
  12. ^ UAE Takes Stake in Time Warner; Hires Icahn Outfit
  13. ^ Istithmar voews to support Barneys as rumors swill
  14. ^ Burkle Angles for Controlling Stake in Barneys
  15. ^ Arcapita announces definitive agreement to sell Loehmann's for $300 Million
  16. ^ Perella Weinberg Raises More Than $1 Bln for Boutique
  17. ^ Istithmar commits to a USD 170 Million investment in Pension Insurance Corporation Holdings
  18. ^ Istithmar World acquires a majority stake in Gulf Stream Asset Management
  19. ^ GLG Partners to Access Public Markets Through Reverse Acquisition
  20. ^ Istithmar World Capital invests in ESPA International, world leading spa company
  21. ^ Houghton Mifflin Harcourt Secures New $650-Million Cash Investment and Recapitalizes Balance Sheet in Historic Restructuring>
  22. ^ EMPG agrees $650m cash injection>
  23. ^ "O’Callaghan sets his sights on emerging markets" The Financial Times October 19, 2008, retrieved on February 1, 2009.
  24. ^ Keena, Colm."EMPG in $125m joint venture with Dubai government" Irish Times October 21, 2008, retrieved on February 1, 2009.
  25. ^ Private equity interest in Istithmar ISS sale
  26. ^ Istithmar suspends Al-Shirawi, Kalthoum
  27. ^ Dubai to free 3 ex-Tamweel property execs on bail
  28. ^ Tamweel Plans to Ask Permission to Restart Trading, Itihad Says
  29. ^ Standard Chartered Welcomes Istithmar As An Investor
  30. ^ Dubai buys 20% Cirque stake
  31. ^ Dubai may put Cirque stake on block
  32. ^ Istithmar raises stake in SpiceJet to US$50 million
  33. ^ Istithmar Sells SpiceJet Stake on Dubai Financial Woes
  34. ^ Great Portland Has $617 Million to Spend After Istithmar Deal
  35. ^ Istithmar PJSC launches Istithmar Hotels
  36. ^ a b Istithmar Hotels completes Purchase of Majority Stake in Mandarin Oriental, New York
  37. ^ Istithmar buys $340m share of luxurious Mandarin Oriental
  38. ^ Hotel Washington to close next month, prepare for W
  39. ^ Dubai Investment House, Istithmar, Acquires the 280 room W Hotel Union Square in New York for US$285 million
  40. ^ Istithmar Hotels takes strategic stage in IHI plc
  41. ^ IHI plc Bond Prospectus 2010
  42. ^ Nakheel and Istithmar join to expand hotel business
  43. ^ Nakheel Hotels acquires 50% stake in Mexican Resort
  44. ^ Nakheel announces joint venture to develop iconic Fontainebleau Miami Beach resort
  45. ^ Fontainebleau Miami Said to Offer Restructuring Plan
  46. ^ Donald Trump's new-found scepticism about Dubai
  47. ^ Dubai World may sell QE2
  48. ^ stithmar and Kerzner enter into USD 700 million financing agreement with syndicate of banks for Atlantis, The Palm
  49. ^ Istithmar-led consortium to buy Kerzner
  50. ^ Dubai Unit Accused of Taking $3.2 Million From Hotel
  51. ^ Dubai World Coughs Up the Knickerbocker
  52. ^ Dubai World completes organisational restructuring