Introduction to Istithmar World Capital October 2008
INTRODUCTION Istithmar World Capital ( IWC ) is a private equity and alternative investment house based in Dubai, UAE Established in 2003, IWC is part of Dubai World Dubai World is owned by the Government of Dubai Investments are focused on three sectors: Consumer, Financial Services and Industrial More than 35 private equity and alternative investments in North America, Europe, Asia, Africa and the Middle East Total equity invested* is US$ 3.3 bn IWC benefits from the differentiated nature of its capital: Longer term patient capital Investment flexibility Broad industry expertise Global reach *As of Q2 2008
OWNERSHIP STRUCTURE Government of Dubai A private equity and alternative investment house with a broad portfolio of over 35 successful firms worldwide A commodity market providing industryspecific market infrastructure and a full range of facilities An international real estate development company focusing on large urban projects The UAE s premier real estate developer, renowned for developing the iconic Palm Islands and The World Drydocks is a leading ship repair and manufacturing yard. Maritime City is a hub for international marine services companies DP World is the third largest marine terminal operator in the world. JAFZA is an economic zone offering incentives to corporations
GEOGRAPHIC PRESENCE New York 2008 2 investment professionals* London 2009 Dubai 2003 Shanghai 2006 12 investment professionals* 30 investment professionals* Office Location *As of Q2 2008
INVESTMENT FOCUS 1. Private Equity 2. Alternative Investments Private equity division focuses on investments in: Medium to large-sized companies Companies with strategic market positions Notable growth potential Alternative investments are tactical opportunities offering strong growth, risk mitigation prospects, and/or specific strategic benefits The private equity division is structured in three industry verticals: Consumer, Financial Services and Industrial.
1. PRIVATE EQUITY Consumer Within the wider consumer universe, the Consumer Vertical focuses on the following sub-sectors: Retail and luxury Goods Healthcare and wellness Media and entertainment Leisure and travel Equity capital deployed* US$ 1,200 mn Current investments* Company Description Date Equity Investment type stake Leading US off-price specialty retailer for high end fashion brands Leader in promotional, lifestyle and gift products Healthcare provider in Southeast Asia. 3-tiered investment in the parent, international, and Dubai entities Two top educational book publishers. IWC has a 2- tiered investment in the parent and the international entity Apr-05 Dec-05 Jan-06 Dec-06 100% Buyout 3% Minority 6% (Parent) 19.5%(intl) 51% (Dubai) 1.7% (Parent) 33.3% (Intl) Public Equity Consortium Private Equity JV Private Equity Minority JV Private Equity Chain of specialty high end luxury department stores located in the US and Japan Sep-07 100% Buyout Provider of spa inspired products, treatments and services Mar-08 40% Minority *As of Q2 2008
1. PRIVATE EQUITY (continued) Industrial Within the wider industrial universe, the Industrial Vertical focuses on the following sub-sectors: Logistics and transportation Utilities Building and construction materials Industrial services Facilities management Aerospace Current investments* Company Description Date Equity Investment type stake Utilities provider that services many of Dubai s landmark developments Leading water treatment company in Southeast Asia Low cost carrier in India with a 10% market share of the domestic airline sector Mar-04 Apr-05 Oct-05 95% Control 10% Minority 13% Public Equity Equity capital deployed* US$ 830 mn World's top marine management services company Jan-06 90% Control World s largest independent airline technical solutions provider, covering most Airbus and Boeing aircraft types Nov-06 30% Consortium Private Equity *As of Q2 2008 Midstream energy company focusing on the Chinese market that provides storage and logistics services for petroleum products, liquid chemicals and gases Jul-07 10% Public Equity
1. PRIVATE EQUITY (continued) Financial Services Within the wider financial services universe, the Financial Services Vertical focuses on the following sub-sectors: Private banking / asset management Consumer banking Investment banking / specialty finance Islamic banking Insurance Current investments* Company Description Date Equity Investment type stake Mortgage provider Dec-03 21% JV Private Equity Securitization company Apr-04 35% JV Private Equity Bahrain based commercial bank Jan-05 10% Sudan based commercial bank Jan-05 <1% Dubai based insurance brokerage firm Apr-06 90% Consortium Private Equity Public Equity Control Equity capital deployed* - US$ 600 mn New York and London based corporate advisory and investment management services firm. 2- tiered investment in the GP and LP Apr-06 9% Consortium Private Equity Islamic merchant bank with offices in Bahrain, Atlanta and London. 2- tiered investment in the GP and LP Jun-06 2% Minority UK based pension insurance company Dec-06 10% Consortium Private Equity First Islamic Bank to be set up in Kenya Mar-07 32% Consortium Private Equity London based hedge fund with $24.9bn AUM (as at December 2007). 2-tiered investment in the GP and LP Aug-07 2% Public Equity US based asset management company. 2-tiered investment in the GP and LP Jun-08 55% Control *As of Q2 2008
2. ALTERNATIVE INVESTMENTS Alternative Investments Alternative investments are categorized as either listed equities or joint venture projects: Listed Equities: Through use of derivatives and other structures to take strategic positions or hedge exposures in companies or industries. Joint Venture Projects: Opportunistic joint investments with due regard for risk. Current investments* Company Description Date Equity Investment type stake Retail and commercial bank operational in emerging markets that has a global network of over 1,200 branches in 56 countries Oct-06 3% Public Equity Equity capital deployed* US$ 780 mn A leading global media and entertainment company Aug-07 <1% Public Equity *As of Q2 2008
PORTFOLIO DIVERSIFICATION* Istithmar World invests in a diversified portfolio of assets across geographies and sectors Investments by ownership Investments by geography 26% 20% Listed Investments Fully ow ned subsidiaries 10% 5% 37% North America GCC & ME Joint Ventures 19% Europe 9% 6% 39% Majority Stakes in unlisted companies Minority Stakes in unlisted companies 29% Asia Africa Investments by sector 26% Consumer 50% of investments by value are controlled (fully owned subsidiaries or majority owned) 41% *As of Q2 2008 (fair value) 33% Industrial Financial Geographical diversification by value with 37% of investments in North America, 29% in GCC & Middle East, 19% in Europe, and 15% in the rest of the world
BOARD OF DIRECTORS Sultan Ahmed Bin Sulayem Chairman, Dubai World David Jackson Chief Executive Officer, Istithmar World Capital Ahmed Bin Sulayem Executive Chairman, Dubai Multi Commodities Centre Saeed Ahmed Saeed Chief Executive Officer, Limitless LLC Laiboon Yu Chief Investment Officer, Dubai World Maryam Sharaf Chief Financial Officer, Dubai World *Please refer to Istithmar World s website for detailed biographies
INVESTMENT TEAM David Jackson Chief Executive Officer Peter Jodlowski Chief Financial Officer Felix Herlihy Chief Investment Officer John Amato Chief Investment Officer Sandesh Pandhare Managing Director, Consumer Shuja Ali Managing Director, Portfolio Operations and Strategy Jane Shao Managing Director, China Gable Gao Managing Director, China *Please refer to Istithmar World s website for detailed biographies