Introduction to Istithmar World Capital
October 2008
• 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 NorthAmerica, 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
INTRODUCTION
*As of Q2 2008
A private equity and alternative
investment house with a
broad portfolio of over 35
successful firms worldwide
The UAE’s premier real
estate developer,
renowned for developing the
iconic Palm Islands and The
World
A commodity market
providing industry-
specific market infrastructure
and a full range of facilities
DP World is the third largest
marine terminal operator in the
world. JAFZA is an economic zone offering incentives to corporations
Drydocks is a leading ship repair and
manufacturing yard. Maritime
City is a hub for international
marine services companies
An international real estate
development company
focusing on large urban
projects
Government of Dubai
OWNERSHIP STRUCTURE
GEOGRAPHIC PRESENCE
Office Location
New York2008
Dubai2003
Shanghai2006
London2009
2 investment professionals*
30 investment professionals*
12 investment professionals*
*As of Q2 2008
1. Private Equity 2. Alternative Investments
INVESTMENT FOCUS
• Private equity division focuses on investments in:– Medium to large-sized companies – Companies with strategic market
positions– Notable growth potential
• The private equity division is structured in three industry verticals: Consumer, Financial Services and Industrial.
• Alternative investments are tactical opportunities offering strong growth, risk mitigation prospects, and/or specific strategic benefits
1. PRIVATE EQUITY
ConsumerWithin 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 Date Investment type
*As of Q2 2008
Apr-05
Description Equity stake
Leading US off-price specialty retailer for high end fashion brands
100% Buyout
Dec-05Leader in promotional, lifestyle and gift products
3% Minority
Jan-06Healthcare provider in Southeast Asia. 3-tiered investment in the parent, international, and Dubai entities
6% (Parent)
19.5%(intl)
51% (Dubai)
Public Equity
Consortium Private Equity
JV Private Equity
Dec-06Two top educational book publishers. IWC has a 2-tiered investment in the parent and the international entity
1.7% (Parent)
33.3% (Intl)
Minority
JV Private Equity
Sep-07Chain of specialty high end luxury department stores located in the US and Japan
100% Buyout
Mar-08Provider of spa inspired products, treatments and services
40% Minority
1. PRIVATE EQUITY (continued)
IndustrialWithin 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
Equity capital deployed* – US$ 830 mn
*As of Q2 2008
Current investments*Company Date Investment type
Mar-04
Description Equity stake
Utilities provider that services many of Dubai’s landmark developments
95% Control
Apr-05Leading water treatment company in Southeast Asia
10% Minority
Oct-05Low cost carrier in India with a 10% market share of the domestic airline sector
13% Public Equity
Jan-06World's top marine management services company
90% Control
Nov-06World’s largest independent airline technical solutions provider, covering most Airbus and Boeing aircraft types
30% Consortium Private Equity
Jul-07Midstream energy company focusing on the Chinese market that provides storage and logistics services for petroleum products, liquid chemicals and gases
10% Public Equity
1. PRIVATE EQUITY (continued)
Financial ServicesWithin 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
Equity capital deployed* - US$ 600 mn
*As of Q2 2008
Current investments*Company Date Investment type
Dec-03
Description Equity stake
Mortgage provider 21% JV Private Equity
Apr-04Securitization company 35% JV Private Equity
Jan-05Bahrain based commercial bank 10%
Jan-05Sudan based commercial bank <1%
ControlApr-06Dubai based insurance brokerage firm
90%
Apr-06New York and London based corporate advisory and investment management services firm. 2-tiered investment in the GP and LP
9% Consortium Private Equity
Jun-06Islamic merchant bank with offices in Bahrain, Atlanta and London. 2-tiered investment in the GP and LP
2% Minority
Dec-06 10% Consortium Private Equity
Mar-07First Islamic Bank to be set up in Kenya
32% Consortium Private Equity
Aug-07London based hedge fund with $24.9bn AUM (as at December 2007). 2-tiered investment in the GP and LP
2% Public Equity
Jun-08US based asset management company. 2-tiered investment in the GP and LP
55% Control
Consortium Private Equity
Public Equity
UK based pension insurance company
2. ALTERNATIVE INVESTMENTS
Alternative Investments
Alternative investments are categorized as either listed equities or joint venture projects:
• Listed Equities: Through use of derivatives and other structures to take strategic positions or hedge exposures in companies or industries.
• Joint Venture Projects: Opportunistic joint investments with due regard for risk.
Equity capital deployed* – US$ 780 mn
*As of Q2 2008
Current investments*
Company Date Investment type
Oct-06
Description Equity stake
Retail and commercial bank operational in emerging markets that has a global network of over 1,200 branches in 56 countries
3% Public Equity
Aug-07A leading global media and entertainment company
<1% Public Equity
Istithmar World invests in a diversified portfolio of assets across geographies and sectors
Investments by sector
Investments by geographyInvestments by ownership
50% of investments by value are controlled (fully owned subsidiaries or majority owned)
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
20%
39%6%
9%
26%
Listed Investments
Fully ow nedsubsidiaries
Joint Ventures
Majority Stakes inunlisted companies
Minority Stakes inunlisted companies
26%
33%
41%
Consumer
Industrial
Financial
37%
29%
19%
10%5%
North America
GCC & ME
Europe
Asia
Africa
PORTFOLIO DIVERSIFICATION*
*As of Q2 2008 (fair value)
Sultan Ahmed Bin SulayemChairman, Dubai World
BOARD OF DIRECTORS
David JacksonChief Executive Officer, Istithmar World Capital
Ahmed Bin SulayemExecutive Chairman,
Dubai Multi Commodities Centre
Saeed Ahmed SaeedChief Executive Officer,
Limitless LLC
Laiboon YuChief Investment Officer,
Dubai World
Maryam SharafChief Financial Officer,
Dubai World
*Please refer to Istithmar World’s website for detailed biographies
Sandesh PandhareManaging Director,
Consumer
INVESTMENT TEAM
Shuja AliManaging Director, Portfolio Operations
and Strategy
Gable Gao Managing Director,
China
Jane Shao Managing Director,
China
Felix Herlihy Chief Investment Officer
John AmatoChief Investment Officer
David JacksonChief Executive Officer
Peter JodlowskiChief Financial Officer
*Please refer to Istithmar World’s website for detailed biographies