Dubai World: Istithmar on ‘stable footing’

The private equity platform owned by Dubai World will not be affected by its parent’s ongoing restructuring efforts.

Private equity firm Istithmar World is unaffected by the high profile restructuring of its parent company Dubai World, the firm said in a statement.

Last week Dubai World, the investment platform owned by Dubai’s government, asked its lenders to accept a standstill on parts of its $60 billion of debt.

Following a review of its liquidity position and capital structure, the group has stated it will “immediately consider alternatives in respect of the debt obligations of certain entities within the group”.

These entities – namely the firm’s real estate platforms Nakheel World and Limitless World – carry around $26 billion of debt, $6 billion of which comprises an Islamic bond – or sukuk – relating to Nakheel.

Istithmar World, which has made various high profile private equity investments in such businesses as Canadian entertainment group Cirque du Soleil and London-based hedge fund manager GLG Group, is not included in the restructuring.

Other companies within the group, such as transport and logistics group Ports & Free Zone World, are also excluded from the process and remain “on a secure financial footing”, said the statement.

As part of the process, Dubai World is to assess Nakheel’s and Limitless’ deleveraging options, “including asset sales”.

Banking group Rothschild will continue as Dubai World’s financial advisor, while Moelis & Company have been appointed to advise on the restructuring.