Istithmar to invest $100 million in Perella Weinberg Partners

DUBAI — Istithmar PJSC yesterday announced an investment of $100 million (Dh367 million) in Perella Weinberg Partners and its investment management business.

By Babu Das Augustine (Assistant Editor)

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Published: Fri 16 Jun 2006, 11:53 AM

Last updated: Sat 4 Apr 2015, 3:24 PM

The new financial services firm is headed by Joseph Perella, a renowned investment banker. Perella Weinberg Partners will provide corporate advisory and investment management services to clients around the world. Perella began planning the new firm in the second half of 2005, after his departure from Morgan Stanley in the spring shook the regime of former chief executive Philip Purcell, who resigned a year ago.

“This is a wonderful and exciting opportunity for Istithmar to partner with Perella Weinberg Partners. We have full faith in Joe and his team of seasoned professionals. With the growth and complexity in today’s global financial services landscape, we believe our investment in Perella Weinberg Partners will be a great asset for Istithmar. We look forward to many years of successful partnership,” Sultan bin Sulayem, Executive Chairman of Istithmar said in a statement.

Established with an initial investment capital pool of $2 billion, Istithmar has, to date, invested in 35 companies deploying approximately $1.6 billion in equity capital. Commenting on Istithmar's investments in the new company, Perella said: “We greatly welcome the association with Istithmar, a leading alternative investment firm, and are delighted to be affiliated with one of Dubai’s premier financial institutions. We look forward to working together to provide exceptional results for all of our partners.”

Perella launched his firm with backing from wealthy families including the Fishers, Gettys and Weinbergs as well as two Middle East institutions Istithmar and GIC. Another prominent Middle East investor in Weinberg Partners is Gulf Investment Corp. owned by six Mideast nations — Saudi Arabia, Kuwait, Oman, Bahrain, Qatar and the United Arab Emirates.

Commenting on GIC's stake in the new firm Hisham Abdulrazzaq Al Razzuqi, Chief Executive Officer of GIC, said: “Our investment in Perella Weinberg Partners demonstrates our strong belief that there is a tremendous opportunity in today's marketplace for a global financial advisory firm that is truly independent and well positioned to identify and develop specialised investment vehicles with attractive risk-adjusted returns.

“This investment is also a strategic one for GIC: Perella Weinberg Partners will help us broaden our product offering and we will each benefit from the other's ability to operate in a different part of the world. Perella has assembled a team of highly experienced professionals with the highest integrity and we look forward to a long and successful relationship."

“GIC's profile and strategic positioning across the entire GCC region makes it a very desirable partner for Perella Weinberg Partners. We are proud to be affiliated with such an eminent institution and look forward to working closely with GIC over the coming years,” said Perella.

Dow Jones adds: The new firm is named after Perella and the co-founder of the new company Peter Weinberg, reflecting the stake being taken by members of the Weinberg family, which has long been associated with Goldman Sachs Group Inc.

Peter Weinberg, who announced he was joining Perella in January, once ran Goldman's European operations. His uncle John and grandfather Sidney both served as Goldman's top executives. His father, Sidney Jr., was a Goldman partner. And his cousin John S. Weinberg is Goldman's current co-head of investment banking.

Perella and his co-founder Tarek Abdel-Meguid, another Morgan Stanley alumnus, sought to raise about $1 billion from roughly a dozen investors. About 80 per cent of the funds from the outside investors, who will get a stake of about 20 per cent in the new firm, will be earmarked for its investment-management unit and investment products.


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