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ADIA Endures Fight for Lost Billions in Citigroup Investment

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The Abu Dhabi Investment Authority (ADIA) is exhausting all legal options to recover its loss from the US$ 7.5 billion Citigroup investment. In court, Second Circuit Judge Gerard Lynch was hearing arguments. David Elsberg of Quinn Emanuel Urquhart & Sullivan LLP and other lawyers from the firm are representing ADIA. Judge Gerard Lynch cited Elsberg of making “petty arguments” in a bid to restart ADIA’s suit against Citigroup. Elsberg argued the arbitration panel incorrectly applied New York law with regard to the dispute versus the laws of Abu Dhabi.

ADIA contended they were induced to make the Citigroup investment based on Citigroup’s “fraudulent misrepresentations” to ADIA.

ADIA’s Capital Infusion

ADIA defied surrendering on their US$ 7.5 billion investment in Citigroup that was made in 2007. Rewind the clock back to 2007, Citigroup was in need of a capital infusion – facing disastrous write-downs on their balance sheet. Citigroup’s king dealmaker, Michael Klein, was the chairman and co-CEO of Citi Markets and Banking. Klein had rooted relationships in the Middle East. He was groomed for the CEO position and negotiated the capital infusion Abu Dhabi’s largest sovereign wealth fund. To ink the deal, former Treasury Secretary under President Bill Clinton, Robert Rubin who became Citigroup’s chairman, took a flight to Abu Dhabi to finalize it. Rubin felt ADIA was a good choice, since Citigroup could only find a small number of institutional investors capable of making the investment on their own.[ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]

Capital Constellation Backs Middle Market PE Platform

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Capital Constellation is the investment platform owned by the Alaska Permanent Fund Corporation (APFC), RPMI Railpen, and Wafra Inc. on behalf of the Public Institution for Social Security of Kuwait (PIFSS). [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]

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Canadian Pension Giants Could Support Trans Mountain Pipeline Deal

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The British Columbian (B.C.) government and indigenous groups publicly oppose the Trans Mountain Pipeline project over a number of issues, which include environmental concerns (potential pipeline spills) and land protections. The threat of project derailment sent jitters to Houston-based Kinder Morgan, Inc., requiring the company to halt non-essential spending on Trans Mountain Pipeline L.P. Calgary-based Kinder Morgan Canada Limited, which owns the pipeline, is a listed company that is 70% owned by Kinder Morgan and 30% owned by stock market investors (float). Kinder Morgan Canada hired TD Securities to explore options regarding the future of the pipeline.

[ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]

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Goldman Sachs Poised to Name David Solomon as New CEO

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Goldman Sachs is poised to name David M. Solomon, the firm’s president, as its new CEO, replacing Lloyd C. Blankfein. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]

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