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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. ]

CDPQ Boosts Stake in Azure Power

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Disclosed on October 17, 2018, Caisse de dépôt et placement du Québec (CDPQ), through CDPQ Infrastructures Asia Pte Ltd., increased its stake in Azure Power Global Limited, a listed Indian solar power producer. CDPQ increased its ownership in Azure Power to 40.3% ownership by a US$ 100 million commitment in a recent capital raise. Post-deal, CDPQ has invested US$ 240 million in Azure Power.

Transaction

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Invesco Lost a Big SWF Equity Mandate

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Invesco celebrated its landmark acquisition to acquire OppenheimerFunds from MassMutual. Invesco faced some outflows on its active management side of the business. In the third quarter of 2018, Invesco had outflows from two sovereign wealth funds, which totaled approximately US$ 2.5 billion. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]

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Sky News Reveals CPPIB Eyeing Gatwick Airport

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Mark Kleinman of Sky News revealed that the Canada Pension Plan Investment Board (CPPIB) is seeking to purchase a stake in Gatwick airport. The transaction could be more than £3 billion GBP, as CPPIB seeks to acquire a 42% in the airport from Global Infrastructure Partners. Furthermore, CPPIB would invest more capital into the airport if the deal goes through.

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