Dubai-based Istithmar World Capital, the private equity and alternative investment arm of the Gulf emirate’s state investment business Istithmar World, has agreed to acquire a majority sta
Dubai-based Istithmar World Capital, the private equity and alternative investment arm of the Gulf emirate’s state investment business Istithmar World, has agreed to acquire a majority stake in Gulf Stream Asset Management, a US-based institutional asset manager that currently manages some USD3.8bn of corporate credit portfolios for institutional investors.
The remainder of the business will continue to be owned by Gulf Stream’s founder and chief executive, Mark Mahoney, and his team. Lehman Brothers acted as financial advisor to Istithmar World Capital in the transaction.
‘Our investment in Gulf Stream comes in line with Istithmar World’s strategy to expand beyond our core focus on private and alternative equity investing into credit and credit-related investment activities,’ says Istithmar World vice-chairman Adel Al Shirawi.
‘We believe that the current state of the credit markets provides Gulf Stream with unparalleled growth opportunities in credit and credit-related investing. The financial vertical of Istithmar World continues to demonstrate stellar performance, and this transaction represents another significant achievement. We look forward to supporting Mark Mahoney and his team as we grow the business together.’
David Jackson, chief executive of Istithmar World Capital, says: ‘The current conditions in the credit market provide a good window of opportunity for growth. Istithmar World is well poised to capitalise on this growth opportunity by partnering with Gulf Stream whose investment experience and judgment in credit related vehicles will be an invaluable asset.
‘This investment supports Istithmar World’s strategy of unlocking growth and expansion potential in credit-related investment activities, as it continues to broaden its private equity initiatives.’
Mahoney adds: ‘By becoming part of Istithmar World’s portfolio, we will have the capability to capitalise upon expansion opportunities the two firms have jointly identified. The opportunity to build a global asset management platform in conjunction with the resources of Istithmar is extremely exciting for our team.’
Istithmar World Capital is based in Dubai with an office in Shanghai. Established in 2003 as part of the Dubai World sovereign wealth fund, the business currently has some US6bn in assets under management and since its launch has invested in more than 35 companies with an aggregate enterprise value of USD9bn, in markets from North America and Europe to the Middle East and East Asia and sectors ranging from consumer to industrial and financial services.
Based in Charlotte, North Carolina, Gulf Stream was established in March 2002 by professionals experienced in debt capital markets, leveraged and structured finance. An independent institutional asset management business focusing on corporate credit, the firm currently manages some USD3.8bn in assets in 10 investment funds.
