Archive | December, 2011

Top 10 Sovereign Wealth Fund Game-Changers of 2011

In general, 2011 was a tough year for sovereign investors. A major lack of public investor confidence combined with structural economic issues coming to roost depressed valuations in capital markets. Our staff has compiled a list of the top ten game-changers that will set the tone for sovereign wealth funds in 2012. 10.) Continual Low-Yield […]

Mubadala Sells JBI Unit to Serco

Abu Dhabi-based Mubadala Development recently sold a commercial property joint venture called John Buck International (JBI) for an undisclosed price. JBI was mainly tasked for the development of Sowwah Square in Abu Dhabi.  The commercial development project is located in Abu Dhabi’s latest business district on Sowwah Island.  In addition, JBI specializes in integrated facilities management. […]

Largest 100 U.S. Public Pensions See First Asset Declines in 5 Quarters

According to the U.S. Census Bureau, total assets of the largest 100 public defined benefit retirement systems declined 8.54% in the third quarter. It was the first overall quarterly loss for the U.S. public investor group in more than 1 year. The top 100 assets are ranked at US$ 2.534 trillion, a little more than […]

Old Times – Alaska Permanent Fund 1981 Asset Allocation

In 1976, the State of Alaska amended its constitution by voter approval to create the APFC. In 1981, the actual administrative expenses were totaled at US$ 165,000. The market value at the time of June 30, 1981 was US$ 1,794,439,000. Asset Class Allocation from June 30, 1981 U.S. Treasury Notes and Bonds 35.3% Banker Acceptances […]

Sovereign Funds and Successful Private Equity Firms

It is a nebulous swamp for private equity firms to navigate nowadays. Fee compression, competition from other public investors, regulatory changes, quality deal flow, and the challenge of raising non-redeemable capital commitments to new and successor private funds are just a few of the tough challenges private equity firms are dealing with. Tighter financing is […]

Saudi Arabia Forecasts Budget Surplus of 12 Billion Riyals

Saudi Arabia is an oil-based economy with strong state controls. The Kingdom of Saudi Arabia is the biggest exporter of petroleum in the world. When planning for their budget, they traditionally use a conservative price for oil of around $60 per barrel. If oil prices surge higher, then revenue and surplus levels next year will […]

CIC Makes a Play in South Africa’s Shanduka Group

South Africa has been a key investment destination for China due to its natural resources, lower political risk profile compared to other African nations, and growing demographics. In fact, the China-Africa Development Fund has been an active investor in the country. The China Investment Corporation (CIC) will purchase a 25% stake in the Shanduka Group […]

Solar Opportunity for Sovereign Wealth Funds

Over the past few years, solar energy has been in demand driven by government subsidies, rising cost of fossil fuels, shifting regulatory environments, and organizations wanting to go greener. Aggressive public policy from various states and nations have further increased stimulus and awarded tax credits in the renewable sector to foster industry growth. Then in […]

CPPIB and the Caisse De Depot Et Placement Du Quebec Invest $159.7 Million in Genivar

The press release states, “GENIVAR Inc.(“GENIVAR” or the “Company”) announced today that it has completed an equity private placement (the “Private Placement”) of 6,500,000 common shares from treasury at a price of $24.57 per share for aggregate gross proceeds of $159,705,000. Participants in the Private Placement are Canada’s top two institutional investors, the Canada Pension […]

Precision Capital and Luxembourg to Acquire Dexia Banque Internationale à Luxembourg

According to the press release, “Dexia, Precision Capital and the State of the Grand Duchy of Luxembourg announce that they have entered into a binding memorandum of understanding on the acquisition by Precision Capital and the Grand Duchy of Luxembourg of the 99.906% stake in Dexia Banque Internationale à Luxembourg S.A. owned by the Dexia […]

Qatar’s SWF Plans to Invest in Asset Managers for Strategic Development

Domestic strategic development is a major goal for countries. Qatar and other oil-based economies are trying to diversify from their lucrative natural resource sector. In fact, sometimes countries can utilize a sovereign wealth fund to stimulate demand in specified sectors within a country. We have witnessed the creation of science parks and educational cities spread […]

Libya Restarts Oil Operations Allows MedcoEnergi to Resume

The Libyan Investment Authority (LIA) is aggressively trying to get back into the swing of things. Recently, Indonesia-based PT Medco Energi International Tbk through a wholly owned subsidiary Medco International Ventures Limited signed a commercial agreement with the Libyan Investment Authority (LIA) for its Area 47 field. MedcoEnergi is an integrated energy company.[ Content protected […]

GLP and CIC Form JV to Acquire Modern Logistics Facilities in Japan

The press release states, “Global Logistic Properties Limited , the market leader in modern logistics facilities in China and Japan, today announced that GLP and China Investment Corporation, through their respective wholly-owned subsidiaries, have entered into a 50:50 joint venture to acquire 15 modern logistics facilities in Japan from LaSalle Investment Management  for JPY122.6 billion […]

CalPERS Purchases Interest in Power Transmission Line

According to the press release, “The California Public Employees’ Retirement System (CalPERS) announced today that it has agreed to acquire a stake in a 65-mile submarine electric power transmission line that runs from Sayreville, New Jersey, to Hicksville, Long Island, New York. The agreement to purchase an interest in the Neptune Regional Transmission System from […]

Kingdom Holding Company Invests Millions in Twitter

On December 19th, 2011, HRH Saudi Prince Alwaleed Bin Talal Bin Abdulaziz Alsaud and Kingdom Holding Company (KHC) invested a combined US$ 300 million in Twitter. This represents a strategic stake in Twitter. There are more than 100 million active users on Twitter. Kingdom Holding Company is a public holding company from Saudi Arabia. Headquartered […]

ADIA to Purchase a 9.9% Stake in UK Water Utility

UK utility infrastructure remains in high demand. The Abu Dhabi Investment Authority (ADIA) plans to purchase a 9.9% stake in Kemble Water Limited, the holding company of Thames Water. ADIA is purchasing the stake from a consortium of investors led by Macquarie called Kemble Water Holdings Limited. The private regulated utility company is responsible for […]

Qatar Holdings Buys Warsaw Office Development

The Qatar Investment Authority (QIA) is a major player in European real estate, whether it is a finished asset or real estate development.  Qatar Holdings LLC has made its first investment in a class-A office project in Poland. The sovereign wealth enterprise has signed a contract to purchase the development in Miasteczko Orange office complex […]

New Jersey Public Pension Commits $1.8 Billion to Blackstone Group

The New Jersey Division of Investment manages the public pension fund which has around US$66 billion in assets. They have committed up to $1.8 billion in funds to be managed by the Blackstone Group. Up to US$ 1.5 billion will be placed in accounts managed exclusively for New Jersey by the Blackstone Group. Over the […]

Temasek Holdings Raises 500 SGD in Capital Through Exchangeable Bonds

On December 8, Singapore’s Temasek Holdings raised 500 million in SGD from the sale of 2-Year zero coupon bonds. These bonds are exchangeable into shares of Hong Kong-listed supply chain manager Li and Fung. Temasek has issued exchangeable bonds through its holdings in Standard Chartered Bank shares.

Updated SWF Fund Rankings – December 2011

The investor class of sovereign wealth funds has decreased by -1.16% to give the current total figure of US$4.755 trillion down from September 2011 of US$ 4.811 trillion. Most of the decrease can be attributed to negative public equity returns. See Fund Rankings Date 12/10/2011