International investment arm of Dubai Holding
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
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
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]
