Global Investments, Local Roots: The Story of Istithmar World

Istithmar World is a private equity company with alternative investment opportunities. The group offers an investment portfolio across North America, Europe, Asia, the Middle East, and Africa. It focuses on investments in consumer goods and financial services, real estate, and industrials. With majority and minority stakes in companies, joint ventures, and fund investments, Istithmar World aims at improving value creation and growth.

The firm incurred significant losses when the global financial crisis hit hard in 2008. This affected a few of its high-profile investments. However, Istithmar World proved determined to go by the international growth and value creation way.

Istithmar World operates its business through three divisions in business. They are specialized in key sectors of international investment. First, Istithmar World Capital is focused solely on private equity and alternative investments and has executed over 35 transactions to date. Its investment strategy is centered across sectors such as finance, hospitality, and real estate while following a strict approach to value-driven growth. Istithmar World Aviation, the company’s second division, focuses on investments in the aviation sector, such as airlines, aircraft leasing, and aerospace manufacturing. It looks at exploiting the growth of the global aviation industry, investing in both the engineering and operational sectors. Last is Istithmar World Ventures, the company’s venture capital arm that supports start-ups and Greenfield ventures. This business line provides not only financial support but also managerial resources to new companies with innovative business models, making them grow and develop in competitive markets.

Put together, the verticals allow Istithmar World to invest in opportunities in various markets across multiple sectors and geographies. Key personalities in the Dubai financial landscape head the company’s board of directors, including Chairman Sheikh Ahmed bin Saeed Al Maktoum and other board members with experiences spanning considerable periods in finance and governance. A few significant leadership changes occurred with the company, especially during and after the financial crisis. Such changes included restructuring in 2009 and 2010 when some big names, including those from Istithmar World Capital, left the organization, but still, the organization continued to transform itself toward an even stronger global presence.

Many investment companies suffered blows from the financial crisis. Istithmar World faced a series of problems with its parent company, Dubai World having to live with high levels of debt that have been followed by major financial restructuring activities going toward late 2009. Istithmar World avoided overt inclusion in the restructuring processes, which were mainly focused on property-related subsidiaries such as Nakheel, but it faced problems managing its investments and had several asset sales and some of its major loss-making businesses.

But Istithmar World continues to invest globally even today. The company focuses on alternative investments, private equity, and asset management as it continues to seek new markets and emerging trends for investment opportunities. Meanwhile, headquartered in Dubai with offices in New York and London among the major financial hubs, Istithmar World is well-positioned against its peers to bank on the global network it enjoys as well as the experience to nurture future growth. Its future course is very likely to be deeply influenced by its strategy to create value through strategic partnerships and active portfolio management.

Istithmar World’s profile is characterized by the visibility of opportunities and risks of global investing. With a diversified approach that has been well supported by adaptive strategies, it seems to have drawn strength from its ability to navigate the changing investment landscape despite earlier challenges.