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Dubai International Capital

Dubai International Capital

Company type	Subsidiary (international investment arm)
Industry	Diversified Investments
Founded	October 2004
Founder	Sheikh Mohammed bin Rashid Al Maktoum
Headquarters	Dubai , United Arab Emirates
Key people	David Smoot (CEO)
Website	www.dubaiic.com

Dubai International Capital (DIC) is the international investment arm of Dubai Holding, a global conglomerate and sovereign wealth fund of the government of Dubai and its ruling family. 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.^{[citation needed]}

DIC, which was founded in 2004, invests in public and private equity 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,^[1] Merlin Entertainments,^[2] Doncasters,^[3] Mauser,^[4] Alliance Medical^[5] and Almatis.^[6]
• 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^[7] and EADS.^[8]

Holdings[edit]

DIC's investments across its divisions include:

Private Equity:

• The Tussauds Group – purchased in 2005 from Charterhouse Capital Partners for £800 million ($1.5 billion). Subsequently, sold in March 2007 to Merlin Entertainments for £1.025bn, though DIC now has 18% in the combined company.^[9] The remaining stock DIC held in the combined company was sold in 2010.
• Doncasters Group Ltd – In May 2006, DIC acquired Doncasters Group Ltd. for £700 million. Doncasters is a British precision-engineering company with plants in Connecticut, Illinois and Georgia that make precision engineered components and systems for applications in a variety of industries.
• Travelodge – purchased the UK budget hotel group in 2006 for £675m (1.02bn euros). Travelodge is the fastest expanding hotel chain in Europe.^[10]
• 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. This stake was sold in 2010.
• 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. Has been sold in August 2014.

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.^[11] It was divested in 2007.
• EADS: acquired a 3.12% stake for $838 million in Europe's largest aircraft and defense manufacturer and Airbus parent company.^[12] Has since been sold.
• Sony: acquired a 3% stake for $1.5 billion Has since been sold.

English Premier League Team[edit]

On a number of occasions, DIC tried to buy into Liverpool F.C., in part because DIC chief Sameer al-Ansari is a 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.^[13] Liverpool later accepted an offer made by American tycoons, George Gillett and Tom Hicks.^[14][15][16]
• 22 December 2007: DIC looked to invest in the club alongside Gillett/Hicks, as the club's 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.^[17][18] Gillett then announced that he was willing to sell his 50% stake alone to DIC.^[19]
• 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.^[20]
• 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.^[21]

References[edit]

External links[edit]

• Dubai International Capital – Official Website