by Ravi Shankar Chaturvedi
"Mumtalakat: Straddling Performance and Liquidity” is an interdisciplinary case, intended for use as a pedagogical tool, that focuses on the liquidity challenges faced by a sovereign development fund (aka transformational fund that displays characteristics of a turnaround private equity firm) of the Kingdom of Bahrain as it struggles to walk the line between restructuring portfolio companies and investing for the future to achieve the stated national economic development goals. Although at first look, a Sovereign Wealth Fund (SWF) having a liquidity imperative may seem counter intuitive, Mumtalakat, despite being clubbed under the wider umbrella definition of an SWF, is quite unlike most conventional SWFs.
While the case has a strong Finance focus, and is intended for use primarily in Corporate Finance, Firm Restructuring, and International Finance and Valuation related courses, it is also relevant for Firm and Country Strategy, Economic Development, and Privatization related courses.
A teaching note for the case is available to instructors upon request, please contact us for a copy.
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