Friday SWFI News Roundup, July 25, 2014

CWCapital Asset Management’s Massive Sale of Distressed CMBS According to Trepp, LLC, a provider on CMBS data and analytics, the first 5 months of 2014, 431 commercial mortgage-backed security loans adding to US$ 7.7 billion were liquidated with losses. Nearly 70% of the liquidated losses were between February and March. CWCapital Asset Management’s massive sale [...]

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Taiwan Central Bank: FX Reserves Not for Sovereign Wealth Fund

Taiwan’s central bank, Central Bank of the Republic of China (Taiwan), said it would not be appropriate to transfer the country’s foreign exchange reserves into a sovereign wealth fund. As of June 2014, Taiwan’s foreign exchange reserves stood at US$ 423.45 billion. The central bank stated that 71% of those reserves are allocated to domestic [...]

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Oil SPAC Attracts Norway’s Sovereign Wealth Fund

International special-purpose acquisition companies, or SPACs, that focus on the energy sector are attracting large institutional investors. SPACs are blank-check companies that sell shares to raise capital to acquire companies that have not been selected yet. Typically, investors who invest in a SPAC are betting on the management team and their deal flow.[ Content protected [...]

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Saudi Public Investment Fund’s Universe Widens

The government of Saudi Arabia is poised to invest in more types of domestic and overseas businesses. Saudi Arabia’s Public Investment Fund (PIF), a smaller vehicle of sovereign wealth, is expanding its coverage of domestic and overseas investments in industries to real estate, petrochemicals and technology. [ Content protected for Sovereign Wealth Fund Institute Standard [...]

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Huarong Attracts Goldman Sachs and Khazanah Nasional

China Huarong Asset Management Co. is finalizing on a deal to sell an approximate a 20% stake to a group of investors which include Goldman Sachs and Malaysia’s Khazanah Nasional for US$ 2 billion. Huarong, one of China’s four asset management firms created in 1999, is looking forward to a future initial public offering and [...]

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Norway’s SWF May Purchase Interests in Two U.S. Buildings Worth $915 Million

Norges Bank Investment Management (NBIM), which manages Norway’s Government Pension Fund Global (GPFG), is in discussions to acquire interests in two U.S. office buildings worth US$ 915 million. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]

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See Which 4 Equity Managers Received International Mandates from the APFC

The Alaska Permanent Fund Corporation (APFC) has hired four equity managers to handle new international equity mandates. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]

Pensions and Sovereign Funds Contribute to Massive Profits for Blackstone

Equity research firms like JMP Securities and RBC Capital have raised their price targets on The Blackstone Group L.P., after the private equity firm disclosed recent financial information. For the Blackstone Group, second quarter profit is measured as economic net income. Economic net income grew by 89% to US$ 1.3 billion since the second quarter [...]

CPPIB Invests in Parking Garages in Belgium and Germany

The Canada Pension Plan Investment Board (CPPIB), through CPP Investment Board European Holdings S.àr.l, has signed an agreement to invest approximately €376 million for a 39% stake in Interparking Group S.A./NV. This deal was announced on July 18, 2014. Brussels-based Interparking is one of Europe’s biggest car parking management companies. Founded in 1958, Interparking has [...]

Oman Looks to Protect its Investment in Bulgarian Bank

Oman’s State General Reserve Fund (SGRF) is playing a pivotal role in the world of Bulgarian banks. The SGRF is reaching out to other large shareholders to put together a plan to help Bulgaria’s Corporate Commercial Bank – #4 bank in the country by assets. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers [...]

USAA Sells Industrial Portfolio to Middle East Sovereign Wealth Fund

In April 2014, USAA Real Estate Co., the real estate investment unit of USAA, launched a search to find a buyer for its 14 million square feet of warehouses scattered across the southern region of the United States. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]

GPIF Chooses Coller Capital Partner for Investment Committee Spot

Japan’s Government Pension Investment Fund (GPIF), US$ 1.27 trillion in size, chose Hiromichi Mizuno to join the fund’s investment committee. Based in London, Mizuno replaces Kimikazu Nomi, CEO of a state-backed investment group called Innovation Network Corporation of Japan. Nomi’s term expired earlier in July. See Key Executives and People – Japan’s GPIF [ Content [...]


Carlyle Cardinal Ireland Fund Gets €292 Million

The Carlyle Group and Cardinal Capital Group on July 14, 2014, had a final close of Carlyle Cardinal Ireland Fund which raised €292 million. Founded in 2003 by Nigel McDermott and Nick Corcoran, Cardinal Capital Group is an investment management firm with offices in London and Dublin.[ Content protected for Sovereign Wealth Fund Institute Standard [...]

Friday SWFI News Roundup, July 18, 2014

Aquila Capital and APG Create Hydropower Investment JV APG Asset Management and Hamburg-based Aquila Capital have created a partnership to invest €500 million toward European hydropower plants. The Dutch pension fund asset manager will contribute €250 million to the joint venture to make investments in operational plants and greenfield projects. Aquila Partners will provide the [...]

Bidders for South Korea’s Parnas Hotel Line Up

Institutional investors are bidding for a majority stake in South Korea’s Parnas Hotel Co Ltd. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]

Pension and Wealth Fund Capital Invests in LaSalle Asian Fundraise

LaSalle Investment Management, a subsidiary of Jones Lang LaSalle, announced a US$ 1 billion close for its LaSalle Asia Opportunity Fund IV L.P. and two other separate accounts. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]

Norway Sovereign Wealth Fund Looking for Real Estate Strategies Professional

As Norway’s Government Pension Fund Global (GPFG) augments activity in direct real estate investments, the need for internal resources is growing. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]

BRICS Making a Bank, RDIF Gets Involved

The BRICS (Brazil, Russia, India, China and South Africa) nations are making their own bank – countering the influence of the International Monetary Fund (IMF). The BRICS member nations have been disappointed with the non-implementation of the 2010 IMF reforms. Leaders of the nations signed an agreement to create the New Development Bank (NDB) to [...]

What if ADIA Took BlackRock Private?

The Abu Dhabi Investment Authority (ADIA) is the largest sovereign wealth fund in the Middle East. The sovereign fund has a mandate to invest overseas, utilizing some of the most respected asset managers in the industry. In rare circumstances, sovereign wealth funds and pensions take equity interests in asset management firms. This is a case [...]

CalPERS and CalSTRS Post Annual Returns Above 18%

The California Public Employees’ Retirement System (CalPERS) returned 18.42% for the fiscal year that ended on June 30th. CalPERS defeated its custom benchmark of 17.98% and surpassed last fiscal year’s return of 13.2%. The private equity portfolio of CalPERS generated 19.99% returns, just 3.31% shy of the benchmark. The asset classes of real estate and [...]

Citigroup Banking

Citigroup Capitulates, Agrees to Payout 7 Billion in Fines and Consumer Relief

Citigroup was part of a group of U.S. lenders being investigated by the U.S. Department of Justice (DOJ) for allegedly misrepresenting the quality of mortgage-backed securities sold prior to 2008. Institutional investors such as pensions and sovereign wealth funds invested in these instruments, either directly or through external fund managers. [ Content protected for Sovereign [...]

Qatari Diar to Own Seef Lusail Real Estate Development

Qatar-based Masraf Al Rayan is selling its 50% stake in Seef Lusail Real Estate Development Company to its joint venture partner which is a unit of Qatari Diar. The remaining 1% was sold to Qatari Diar Real Estate Investment Company. Masraf Al Rayan, Qatar’s largest Islamic bank by market value, had owned the development equally [...]

Qatar Sovereign Wealth Finalizes Deal in Moscow Real Estate

Gazing North, Qatar’s sovereign wealth fund has been making larger inroads into Russia. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]

Academic-Led Study Says Professors on Boards Help Performance

Are corporate directors from the academic world effective board members? A discussion paper concludes that companies that have directors from the academic world (specifically non-administrative academics) are associated with higher performance. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]

UPDATE – Deal Canceled – on Meguro Gajoen

UPDATE – July 11, 2014 GIC Private Limited has backed out of buying the Tokyo property due to a dispute between two other groups involving land. Lone Star Funds was close to selling the property to the Singapore sovereign wealth fund. Singapore sovereign wealth fund, GIC Private Limited, beat out other institutional investors to acquire [...]

Update: Ex-CalPERS CEO Admits Taking Cash Bribes

Fred Buenrostro, the former CEO of CalPERS, pleaded guilty today to a charge of conspiracy to commit bribery and fraud. Furthermore, Buenrostro admitted taking US$ 200,000 in cash bribes from his former colleague Alfred Villalobos. He took the cash through a shoe box and paper bags. Other benefits include casino chips. In return, Buenrostro attempted [...]

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