Dubai International Capital
Encyclopedia
Dubai International Capital (DIC) is the international investment arm of Dubai Holding
, a holding company and sovereign wealth fund
of the government of Dubai
and its ruling family and has been over-leveraged to the point whereby the company is not able to service its interest payments in a normal fashion. DIC invests private funds on behalf of Dubai Holding and several large third-party investors around the world with a mandate to build a portfolio of internationally diversified assets.
DIC, which was founded in 2004, invests in public
and private equity
through three divisions:
Private Equity:
Emerging Markets:
Public Equities:
, in part because DIC chief Sameer al-Ansari is an LFC fan and season ticket holder:
Dubai Holding
Dubai Holding is a holding company that belongs to the Government of Dubai . It manages and controls 20 companies, which operate in real estate, hospitality, finance, healthcare, energy, research, education, entertainment, media, internet, tourism and biotechnology...
, a holding company and sovereign wealth fund
Sovereign wealth fund
A sovereign wealth fund is a state-owned investment fund composed of financial assets such as stocks, bonds, property, precious metals or other financial instruments. Sovereign wealth funds invest globally. Some of them have grabbed attention making bad investments in several Wall Street financial...
of the government of Dubai
Dubai
Dubai is a city and emirate in the United Arab Emirates . The emirate is located south of the Persian Gulf on the Arabian Peninsula and has the largest population with the second-largest land territory by area of all the emirates, after Abu Dhabi...
and its ruling family and has been over-leveraged to the point whereby the company is not able to service its interest payments in a normal fashion. DIC invests private funds on behalf of Dubai Holding and several large third-party investors around the world with a mandate to build a portfolio of internationally diversified assets.
DIC, which was founded in 2004, invests in public
Stock
The capital stock of a business entity represents the original capital paid into or invested in the business by its founders. It serves as a security for the creditors of a business since it cannot be withdrawn to the detriment of the creditors...
and private equity
Private equity
Private equity, in finance, is an asset class consisting of equity securities in operating companies that are not publicly traded on a stock exchange....
through three divisions:
- Private Equity: Invests in mid-cap companies in Europe and North America with a focus on secondary buy-outs that include Travelodge,, Merlin Entertainments, Doncasters, Mauser, Alliance Medical and Almatis.
- Emerging Markets: Manages a broad investment program across the Middle East and North Africa region, including LBOs, funds and co-investments, infrastructure, growth and development capital
- Public Equities: Focused on investment in Fortune 500 companies through its DFSA regulated US$ 1.5 billion Global Strategic Equities Fund. The fund has invested in global leaders such as Sony and EADS.
Holdings
DIC's investments across its divisions include:Private Equity:
- The Tussauds GroupThe Tussauds GroupThe Tussauds Group is now part of Merlin Entertainments, the world's second largest leisure group, second only to Disney. It is based in Poole, Dorset from where it manages a portfolio of brands and over 50 attractions including the famous Madame Tussauds waxworks, Legoland Parks, Sealife Centres,...
- purchased in 2005 from Charterhouse Capital PartnersCharterhouse Capital PartnersCharterhouse Capital Partners is a private equity investment firm focusing on leveraged buyout of established, substantial businesses, based in Western Europe...
for £800 million pounds ($1.5 billion). Subsequently sold in March 2007 to Merlin EntertainmentsMerlin EntertainmentsMerlin Entertainments Group Ltd is a British operator of amusement parks and other attractions. It is the largest such company in Europe, and globally the second largest after Walt Disney Parks and Resorts....
for £1.025bn, though DIC now has 18% in the combined company. - Doncasters Group Ltd - In May 2006, DIC acquired Doncasters Group Ltd. for £700 million. Doncasters is a British precision-engineering company with plants in ConnecticutConnecticutConnecticut is a state in the New England region of the northeastern United States. It is bordered by Rhode Island to the east, Massachusetts to the north, and the state of New York to the west and the south .Connecticut is named for the Connecticut River, the major U.S. river that approximately...
and GeorgiaGeorgia (U.S. state)Georgia is a state located in the southeastern United States. It was established in 1732, the last of the original Thirteen Colonies. The state is named after King George II of Great Britain. Georgia was the fourth state to ratify the United States Constitution, on January 2, 1788...
that make precision engineered components and systems for applications in a variety of industries. - TravelodgeTravelodge UKTravelodge Hotels Limited is a private company operating in the hotels and hospitality industry throughout the United Kingdom. Branded simply as Travelodge or Travelodge UK, it is the second largest in the budget hotel sector and third biggest hotel chain in the UK by number of bedrooms...
- purchased the UK budget hotel group in 2006 for £675m (1.02bn euros). Travelodge is the fastest expanding hotel chain in Europe - Merlin Entertainments Group - In March 2007 DIC merged The Tussauds Group with Blackstone’s Merlin Entertainments Group to create the second largest visitor attractions operator in the world after Disney. DIC received £1.025 bn cash and retained an 18 % stake in the combined company.
- Fastentech - In May 2007 DIC-owned Doncasters acquired FastenTech for US$500m in a bolt-on acquisition from Court Square Capital. FastenTech is a leading international manufacturer of industrial and aerospace-grade fasteners and has a strong presence in the US.
- Mauser Group - purchased the German industrial packaging company in June 2007 for €850m - one of the world's leading industrial packaging firms.
Emerging Markets:
- Jordan Dubai Capital: A US$300 million private equity fund dedicated to investments in Jordan, launched in 2005.
- Ishraq: A US$ 150 million investment company focused on delivering the budget hotel concept across the Middle East, established in 2005.
- MENA Infrastructure Fund: Launched the US$500 million MENA Infrastructure as co-Anchor with HSBC and Waha Capital in 2006. It targets investments in the infrastructure and energy sectors across the Middle East and North Africa.
- Rivoli Group: In 2007, DIC acquired a substantial stake in the UAE-based luxury goods retailer.
- KEF Holdings:DIC acquired a 45% stake in the leading UAE-based foundry in 2008, catering mainly to the oil and gas industry.
Public Equities:
- Daimler AG:acquired a 2% stake for $1 billion in German carmaker Daimler, making it the company's third largest shareholder in 2005. It was divested in 2007.
- EADSEADSThe European Aeronautic Defence and Space Company N.V. is a global pan-European aerospace and defence corporation and a leading defence and military contractor worldwide...
: acquired a 3.12% stake for $838 million in Europe's largest aircraft and defense manufacturer and AirbusAirbusAirbus SAS is an aircraft manufacturing subsidiary of EADS, a European aerospace company. Based in Blagnac, France, surburb of Toulouse, and with significant activity across Europe, the company produces around half of the world's jet airliners....
parent company. - SonySony, commonly referred to as Sony, is a Japanese multinational conglomerate corporation headquartered in Minato, Tokyo, Japan and the world's fifth largest media conglomerate measured by revenues....
- acquired a 3% stake for $1.5 billion
Liverpool F.C.
On a number of occasions, DIC tried to buy into Liverpool F.C.Liverpool F.C.
Liverpool Football Club is an English Premier League football club based in Liverpool, Merseyside. Liverpool has won eighteen League titles, second most in English football, seven FA Cups and a record seven League Cups...
, in part because DIC chief Sameer al-Ansari is an LFC fan and season ticket holder:
- 3 December 2006: DIC and Liverpool revealed that DIC were in exclusive negotiations to potentially buy or invest in the football club Liverpool later accepted an offer made by American tycoons, George GillettGeorge N. Gillett Jr.-Biography:George Gillett graduated from Lake Forest Academy in 1956. He attended Amherst College and is a graduate of Dominican College in Racine, Wisconsin....
and Tom HicksTom HicksThomas Ollis Hicks, Sr. , is an American 'leveraged buyout' businessman living in Dallas, Texas. Despite Forbes Magazine estimating Hicks' wealth at USD 1 billion in 2009, Hicks was unable to pay off joint loans of circa £200 million the following year... - 22 December 2007: DIC looked to invest in the club alongside Gillett/Hicks, as the clubs owners suffered financial difficulties. However, Hicks later dismissed holding any talks with DIC and even DIC making a bid for his share.
- 14 February 2008: reported that DIC have 'the outline of an agreement to purchase the Reds from George Gillett and Tom Hicks, and a deal could go through by mid-March' for a sum of around £500M. Gillett then annaounced that he was willing to sell his 50% stake alone to DIC.
- 10 March 2008: Hicks announced via the Liverpool website that he has terminated further discussions with DIC. Hicks was apparently not willing to allow DIC to be involved in football decisions.
- 15 September, 2008: Premier League rivals Newcastle United linked with DIC. However, DIC have stated they are not planning a fresh bid for Liverpool, nor were they in talks with any other side from England's top flight.