Dubai International Capital Realizes Significant Return from Middle East Growth Equity Portfolio

11th December 2013

Dubai International Capital (DIC) has recently completed the exit of all major investments in its Middle East growth equity portfolio. DIC’s success culminated with the sale of its remaining shares in luxury-lifestyle retailer Rivoli to the Swatch Group. Since DIC became a significant shareholder in 2007, Rivoli has doubled the number of retail locations and sales.

Commenting on DIC’s exit from Rivoli, David Smoot, DIC’s CEO, said, “Rivoli achieved impressive growth and will continue to prosper and exceed the high standards of excellence found in the luxury retail industry. This exit closes an outstanding chapter in DIC’s evolution and is an important milestone, particularly for our Middle East private equity franchise.”

DIC’s Middle East growth equity portfolio has generated a realized net IRR of approximately 15% and 1.7 times money multiple from DIC’s debut vintage that was launched in 2005. These strong returns represent a unique track record for one of the few complete private equity portfolio exits in the region that can be measured on a realized basis.

DIC successfully acquired and actively managed a Middle East growth equity portfolio of over $400 million. Since 2011, DIC has executed a number of creatively originated and negotiated exits in the Middle East such as the sale of its stake in the Oil & Gas castings and valves manufacturer KEF to Tyco, the sale of Holiday Inn Express hotel properties in Dubai to the Al Mulla Group, and sale of its stake in Rivoli to Swatch Group in a series of transactions.

The Middle East private equity industry has in the last few years faced several structural and economic challenges. Despite these hurdles, DIC has demonstrated that it is possible to make direct investments, grow businesses and ultimately generate strong returns.

“We are extremely proud of our private equity track record in the Middle East. This could not have been achieved without the tireless efforts of the team over the last few years. We remain excited about the growth prospects in this region and its impact on the private equity industry, and look forward to many more accomplishments,” added David Smoot.